The Union Square shopping centre, a prominent retail and leisure hub in Aberdeen, has been acquired by a US-based affiliate of the Lone Star Real Estate Fund for £111 million. This sale concludes Hammerson’s targeted strategy to shed non-core UK assets, with the property developer announcing that the transaction is set to complete by the end of March.

This move is part of Hammerson’s broader £500 million plan to divest non-essential assets, aiming to strengthen its financial position by reducing net debt and increasing the availability of funds for investment in its key properties. The sale price reflects an 8% discount on the property’s December valuation, translating to a net initial yield of 11%.

Union Square, which opened in 2009, is linked directly to Aberdeen’s train and bus stations, and features a mix of retail shops, a hotel, cinema, and restaurants. It has reported an annual footfall of 14.6 million, with visitors spending an average of 93 minutes in the centre and a typical retail expenditure of £58.

The sale of Union Square follows Hammerson’s previous disposals of the Bon Accord and Trinity shopping centres, highlighting a transformative phase in Aberdeen’s retail sector. Additionally, Marks and Spencer has revealed plans to close its flagship store in the St Nicholas Centre by spring 2025, choosing instead to expand its operation at Union Square.

In conjunction with these developments, representatives from Aberdeen will be participating in the upcoming UK Real Estate Investment and Infrastructure Forum (UKREiiF) event titled “Reloaded Investment Facilitation.” Scheduled to take place at the Royal Armouries from 14:15 – 15:00, this session will focus on “Scotland and Northern Ireland: Investor and Developer Facilitation.” Senior public sector officials from Scotland and Northern Ireland will join key councils and cities, together with private sector development partners, to engage directly with invited investors, developers, and occupiers interested in the region. This exclusive session aims to foster connections and encourage investment and development within Aberdeen and beyond, indicating a proactive approach to regional economic development and investment attraction.