Lone Star buys Union Square for £111m

Hammerson has sold the final asset of its planned £500m non-core disposal programme. The firm has sold the 520,000 sq ft Union Square shopping centre in Aberdeen to an affiliate of Lone Star Real Estate Fund VI for £111m – a net initial yield of 11% The agreed sale is at an 8% discount to the mall’s 31 December 2023 book value and is expected to complete by the end of this quarter. Hammerson said proceeds from the sale would “further strengthen the balance sheet by reducing net debt and provide additional capacity for reinvestment into the core portfolio”. Hammerson began offloading assets as part of a planned £500m sale in early 2022. Union Square was the final asset to be sold.