Hammerson has sold its Union Square shopping centre in central Aberdeen to US privater equity firm Star Real Estate Fund for a cut-down price of £111 million.

The purchase marks a return to the UK retail sector for Dallas-based London Star having exited its UK shopping centre portfolio in 2014.

The cash sale, due to be completed in Q1, brings to a close the UK property giant’s £500 million non-core disposal programme that began in 2022.

The sale represents an 8% discount to 31 December 2023 book value of £121 million and a net initial yield of 11%. In 2022, the mall was close to a £140 million sale to real estate giant Brookfield, but the deal fell through.

The 15-year-old 52,000 sq m Union Square is a hybrid between a shopping centre and retail park attracting a footfall of around 15 million a year. It operates 80 stores, restaurants and leisure options, and is home to major brands including Zara, H&M, Next, M&S, New Look, JD, Levi’s, Boss, Skechers, TK Maxx, Superdry, North Face, The White Company, Seasalt and River Island.

Hammerson, which also owns the Bullring in Birmingham and the Dundrum Town Centre, Dublin, said proceeds of the disposal will further strengthen the balance sheet by reducing net debt and provide additional capacity for reinvestment into the core portfolio.