In a significant move that underscores confidence in prime retail locations, Land Securities has acquired a 92 per cent stake in Liverpool One for £490 million. The FTSE 100 property giant’s strategic purchase from Abu Dhabi Investment Authority and Grosvenor demonstrates its unwavering commitment to destination retail centres amid broader market uncertainty.
The deal positions Landsec as a dominant force in the UK’s premium retail landscape, with control over seven of the nation’s top 30 shopping centres. Mark Allan, chief executive, emphasised the strategic importance of prime locations, noting that the top 1 per cent of UK shopping destinations capture 30 per cent of all in-store retail spend.
Liverpool One, boasting an impressive annual footfall of 22 million visitors, has recently secured notable tenants including Marks & Spencer, Sephora, Uniqlo and Zara. Shore Capital’s Andrew Saunders praised the acquisition, highlighting potential upside in rental yields through Landsec’s proven asset management capabilities.
The investment comes at a time when many property firms have retreated from retail assets due to online shopping pressures and high-profile retailer collapses. Landsec’s contrarian approach is supported by early signs of rental recovery, with the company revising its net rental income growth forecast upward from 2.8 per cent to 4 per cent for the current financial year.
The £10 billion portfolio holder maintains its focus on prime office spaces and shopping centres, diverging from competitors who have diversified into student accommodation and warehousing. This strategic positioning aligns with similar moves by Frasers Group, which has also been actively acquiring retail assets at attractive valuations.
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