Landsec secures 92 percent stake in Liverpool One

Real estate firm Landsec has announced the acquisition of a 92 percent stake in UK shopping centre Liverpool One, for an overall consideration of 490 million pounds.

The stake was snapped up from a wholly owned subsidiary of the Abu Dhabi Investment Authority (ADIA), which previously held a 69 percent stake, and property group Grosvenor, which owned 23 percent.

A payment of 35 million pounds to ADIA has been deferred for two years as part of certain performance-related overage provisions.

Landsec said that it is anticipating rental income to grow “meaningfully” in the coming years, with strong brand relationships and further ERV growth helping to boost the centre’s current rental income of 4 percent.

The acquisition aligns with the company’s mission to grow its investment in major retail destinations, thus utilising the proceeds of its 464 million pounds in non-core sales it reported earlier this year.

In a release, Mark Allan, chief executive officer at Landsec, called Liverpool One a “thriving location” that it looked forward to building on with the company’s “leading operating platform”.

The CEO of Grosvenor Property UK, James Raynor, meanwhile, said the centre represented “one of the most remarkable regeneration stories” for the firm, which now has “ambitious plans to grow and diversify” its own business.

Raynor added that Grosvenor is planning to reinvest the proceeds from the sale into its core portfolio, including an ongoing 10-year programme of investment in London and its residential debt business.