Hammerson has announced the exchange of an unconditional contract for the sale of Union Square, the 52,000m shopping centre in Aberdeen, to an affiliate of US-based Lone Star Real Estate Fund VI, L.P. for £111 million in cash.

Completion of the deal is expected to occur in the first quarter of 2024.

“This represents an 8% discount to 31 December 2023 book value of £121m and a net initial yield of 11%,” said Hammerson.

“The proceeds of this disposal will further strengthen the balance sheet by reducing net debt and provide additional capacity for reinvestment into the core portfolio.

“As part of Hammerson’s strategic re-alignment of its portfolio, the sale of Union Square concludes the £500m non-core disposal programme, as outlined at the start of 2022.”