Aberdeen's Union Square shopping centre sold in deal worth over £111m

Aberdeen’s Union Square shopping centre has been sold in a deal worth over £111m.

The shopping and leisure centre in the city, owned by property developer Hammerson, confirmed contracts have been exchanged with an affiliate of the US-based Lone Star real estate fund.

The shopping centre, which first opened in 2009, has a hotel, a 2,000-seater cinema, over 50 shops, and more than 30 restaurants.

The final sale of the centre for £111m cash consideration represents an 8% discount to book value of £121m as of December 31, 2023.

Hammerson confirmed the sale as part of a ‘non-core disposal programme’ worth £500m.

Last year, deals were also completed for Aberdeen’s Bon Accord and Trinity shopping centres.

In January, Marks and Spencer announced its flagship store on St Nicholas Street, which first opened over 80 years ago, was to close in 2025.

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The retail giant claims jobs will be transferred over as it announced the closure.

The retail giant has said new plans to upgrade the Union Square shop with a £15m redevelopment are in place.

The Union Square store is set to double in size with a new food hall, a bigger in-store bakery and clothing, home and beauty departments.

In a statement last month, M&S said: “As one of the biggest private sector investments in Aberdeen for years, these plans include £15m for M&S Aberdeen Union Square – next year expanding to almost the double the size with a spacious fresh market-style food hall full of exciting new features including a beautiful flower shop, a cheese barge, larger in-store bakery and dedicated M&S Wine Shop as well as bigger clothing, home and beauty departments – all designed to make shopping inspirational and easier than ever before.

“Spring 2025 is when the £15m expansion in Aberdeen Union Square is scheduled to complete and the city can boast the fourth biggest M&S in Scotland. M&S will then be closing its store on St Nicholas Street. Plans for this longer-term relocation have today been shared with colleagues – with all those on permanent contracts transferring over to M&S Aberdeen Union Square or other nearby stores next year.

“M&S will work closely with the council and partners on the future development of the St Nicholas store.”

Aberdeen City Council has been contacted for comment.