Hammerson has taken full control of the proposed Union Square development in Aberdeen
Hammerson has taken full control of the proposed Union Square development in Aberdeen after buying the combined 50% stake of joint venture partners Multiplex and the Reuben Brothers for £20.1m.
The proposed £190m scheme, which is thought to be the largest of its type in Scotland, occupies a 9-ha site adjacent to Aberdeen’s railway station. It is described as a hybrid of a traditional mall and retail park, providing 226,044sq ft (21,000 sq m) of shops, a 175,453 sq ft (16,300 sq m) retail terrace, a 83,959 sq ft (7,800 sq m) of leisure space and a 45,208 sq ft (4,200 sq m) Cine UK multiplex cinema.
The first phase of the development is expected to begin later this year and around 40% of the scheme is pre-let or in solicitors’ hands. The scheme has a projected net rental income of £13.7m.
John Richards, chief executive of Hammerson, said he was pleased to be taking full control of the site. ‘We believe there is significant potential for this type of hybrid scheme, which meets retailers’ needs for large, efficient floorplates and high footfall.’
Jayne McGivern, chief executive, Multiplex Developments UK said: ‘This sale to Hammerson allows Multiplex to realise value generated over the past three years. We have improved the planning consent, thereby increasing the value of the site. However, having reviewed the letting risk, programme for delivery and timing of profit release, both Multiplex and Aldersgate concluded that Hammerson is best placed to take the scheme forward as sole owner on the basis that the early profit can be reinvested in other opportunities.’