An American private equity firm is set to buy Aberdeen’s Union Square shopping mall for £110 million.
Lone Star is understood to have made an offer and in advanced talks for the food and retail hub.
The Press and Journal revealed in 2022 that Aberdeen’s Union Square was being lined up for a sale by its owner.
Hammerson, who own and built the property, had originally been seeking £150m but the offer from Dallas-headquartered is believed to be £110m.
According to reports the purchase price represents a 12% yield meaning the rents are around £13m a year at Union Square.
It is understood that NatWest is also part-funding the the transaction.
The city centre site cost £275m to build and is home to the likes of Apple, BrewDog, H&M and Zara.
A previous deal by Brookefield, one of the world’s biggest real estate companies, to buy the shopping centre for £140m fell through in August 2022.
Who is Lone Star
Lone Star is a leading private equity firm advising funds that invest globally in real estate, corporate equity, credit, and other financial assets.
Since the establishment of its first fund in 1995, Lone Star has organized 23 funds with aggregate capital commitments totalling approximately $87billion.
It is headquartered in Dallax, Texas, and previously had a financial stake in Sony Pictures.
In July 2015, Lone Star acquired the UK property investment and development company Quintain for £700m.
A Union Square spokeswoman said: “As a matter of company policy, Hammerson does not comment on rumour or speculation in the market.”
US deals in city
When Union Square does change hands, it will follow a string of major American investment deals in Aberdeen.
The Beach Boulevard Retail Park in Aberdeen changed hands in a deal believed to be worth £60m when it was bought by California-based Realty Income Corporation (RIC), a property trust that invests in free-standing, single-tenant commercial properties in the US, UK and Spain.
It was the US trust’s second major purchase in the Granite City, with it having previously acquired Garthdee Retail Park in a deal worth nearly £33m.
It also purchased Berryden Retail Park from Mike Ashley’s Frasers Group.
Elsewhere, The Press & Journal exclusively revealed Zakir Issa, a sibling of the billionaire brothers who own Asda, had bought the Bon Accord Centre – once valued at over £200m – for under £10m.
He later snapped up the neighbouring John Lewis building for just £270,000.
Lone Star and Hammerson have been contacted for comment.
A number of retailers have opened new stores at Union Square within recent months.
Fragrance retailer Jo Malone, cosmetic store Lush and fashionwear Sea Salt Cornwall all opened within the centre.