Landsec has acquired a 92% stake in Liverpool ONE, one of the UK’s leading retail and leisure destinations, for a total of £490 million.
The deal was struck with a subsidiary of the Abu Dhabi Investment Authority (ADIA), which held a 69% share, and Grosvenor, which owned 23%. Of the total purchase price, £35 million due to ADIA has been deferred for two years.
This acquisition aligns with Landsec’s strategy of focusing on major retail destinations. The company has recycled £464 million from non-core sales earlier this year to fund the purchase. With Liverpool ONE added to its portfolio, Landsec now owns and manages seven of the UK’s top 30 shopping centres.
Opened in 2008, Liverpool ONE is a flagship destination offering a mix of retail, dining, and leisure experiences. Attracting an annual footfall of 22 million people, the centre has demonstrated strong performance, with retail sales rising by 5% in the past year. New leases have been signed at 10% above estimated rental values, while relettings and renewals are achieving 5% above previous rents. The centre maintains a robust occupancy rate of 96%.
Landsec is set to assume full management of Liverpool ONE from Grosvenor in February 2025.
Mark Allan, CEO of Landsec, commented:
“The top 1% of the UK’s shopping destinations capture 30% of all in-store retail spend, which is why we’re seeing brands prioritise fewer but larger stores in the best locations. Liverpool ONE is a top-ten destination with an excellent return profile, and its addition strengthens our unique portfolio of seven top-30 centres in the UK. We’re excited to build on Liverpool ONE’s success with our operating platform and help drive its future growth.”
James Raynor, CEO of Grosvenor Property UK, added:
“Liverpool ONE is a phenomenal destination and a testament to what long-term investment and partnership can achieve. Over the past 25 years, it’s become one of the UK’s most successful retail and leisure hubs. Under Landsec’s unified ownership and management, we’re confident it will continue to thrive.
“We plan to reinvest the proceeds into our core portfolio, including a 10-year investment programme in London and our residential debt business, which has already supported the delivery of 3,370 homes in two years.”
In a statement last month, Landsec reiterated its confidence in the retail sector, citing “most attractive” returns in retail and its intention to further deploy capital into this space.
This acquisition solidifies Landsec’s position as a major player in the UK’s retail landscape, with Liverpool ONE set to play a pivotal role in its growth strategy.
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