What: In a major retail property deal, Landsec purchases majority control of Liverpool One for GBP 490 million, strengthening its position in premium UK retail locations and adding to its portfolio of top-performing shopping centres including Bluewater and Westgate.

Why it is important: This strategic acquisition reflects growing confidence in prime retail destinations, as major property companies consolidate ownership of high-performing shopping centres that continue to attract both retailers and consumers. Landsec has acquired a 92% stake in Liverpool One, purchasing 69% from the Abu Dhabi Investment Authority and 23% from Grosvenor for a total consideration of GBP 490 million, with GBP 35 million deferred for two years. The transaction is expected to generate a 7.5% return on the initial GBP 455 million investment.

Liverpool One, opened in 2008, has demonstrated strong performance with 22 million annual visitors and 5% retail sales growth over the past year. The centre maintains 96% occupancy, with recent leases signed 10% above estimated rental value and re-lettings achieving 5% above previous rates. Recent tenant additions include Miniso, Sephora, and Zara, highlighting the centre's appeal to major brands focusing on fewer, larger, and better-located stores.

IADS Notes: While the GBP 490 million deal strengthens Landsec's position in prime retail locations, it comes amid broader shifts in shopping center ownership, with other players like Frasers Group and IKEA also actively acquiring retail properties. The investment demonstrates continued confidence in high-performing retail destinations, with Liverpool One's strong footfall and recent leasing success supporting the strategy.

Landsec buys Liverpool One, now owns 7 of top UK malls