Union Square Aberdeen: Huge shopping centre in heart of Scottish city put up for sale at £175 million
“Combined with a superb economic backstory to this exceptional city, further boosted by recent support for opening-up the oil and gas fields at Jackdaw and Rosebank, the future here looks incredibly bright” – Charlie Barke, Knight Frank
One of Scotland’s largest urban shopping centres has hit the market for £175 million less than three years after being bought in a £111m deal.
Union Square in Aberdeen, which is home to the likes of M&S, TK Maxx, Apple and Next, is being marketed by current owner Lone Star Funds through commercial property advisor Knight Frank.
Lone Star acquired the site, which includes a significant retail park alongside a prime enclosed retail and leisure mall, in the first quarter of 2024 from property group Hammerson for £111m. Knight Frank said it was seeking a price of around £175m following the decision to market the centre, which was developed in 2009.
Totalling some 550,000 square feet of space, Union Square has recently seen M&S upsize to a new flagship 100,000 sq ft anchor unit on the retail park.
Other recent upsizes include TK Maxx and Apple, while new lettings include Ikea, Mango, Schuh, Victoria’s Secret, Hobbs, The Entertainer and Wing Stop, resulting in a 22 per cent increase in net income over the last 36 months.
Other retailers in the retail park include JD and Next while operators in the mall include Zara, H&M and Cineworld.
Charlie Barke, head of capital markets at Knight Frank, said: “Union Square is a huge success story and its recent lettings, substantial tenant investment, rental trajectory and strong trading platform are exactly what you want to see from a thriving retail asset with strong sustainability credentials. Combined with a superb economic backstory to this exceptional city, further boosted by recent support for opening-up the oil and gas fields at Jackdaw and Rosebank, the future here looks incredibly bright.”
Many shopping centres, particularly those located in town and city centres, have had to adapt to changing shopping habits with the rise of online trading and out-of-town developments, which frequently offer free or very cheap parking. Rising costs and pressures from the cost-of-living crisis have added to the challenges facing centre operators and their tenants.
However, a number of major sites, including Dundee’s Overgate, Livingston’s The Centre and Silverburn in Glasgow, have announced new openings in recent months.
Comments
Want to join the conversation? Please or to comment on this article.