Recently, Landsec has further cemented its position as a major player in the UK retail property sector with the acquisition of a 92% stake in Liverpool One, one of Britain’s premier shopping and leisure destinations. The deal, valued at £490 million, includes a 69% share purchased from the Abu Dhabi Investment Authority (ADIA) and 23% from Grosvenor. Notably, £35 million of the payment to ADIA will be deferred for two years.
This acquisition brings Landsec’s portfolio of top-tier shopping centres to seven, including Bluewater, Westgate, and St David’s. With this move, Landsec now owns and manages seven of the top 30 malls in the UK. The initial outlay of £455 million is expected to deliver an income return of approximately 7.5%.
Liverpool One, opened in 2008, is a standout destination, attracting 22 million visitors annually. It boasts a 96% occupancy rate, with retail sales up 5% over the past year. Recent leasing activity has been robust, with new agreements signed at 10% above estimated rental value (ERV), and re-lettings and renewals achieving a 5% uplift on previous rents.
Landsec sees significant growth potential in Liverpool One. The current rental income is 4% below ERV, and the company plans to leverage its operating platform and brand relationships to boost rental income. CEO Mark Allan highlighted the importance of prime retail locations, noting that the UK’s top 1% of shopping centres account for 30% of in-store retail spend. Recent brand signings, openings, and expansions include well-known beauty-related companies such as Miniso, Bath & Body Works, Sephora, and Zara.
Grosvenor Property UK CEO James Raynor praised Liverpool One as a “phenomenal destination” and a benchmark for long-term investment and regeneration. He expressed confidence in Landsec’s ability to continue its success under unified ownership and management.
