Property investment company Landsec has announced that it has acquired a 92 per cent stake in the Liverpool ONE shopping centre.

The company will purchase a 62 per cent stake from a wholly owned subsidiary of the Abu Dhabi Investment Authority (ADIA) and a 23 per cent from real estate group Grosvenor for £490 million.

Landsec said the acquisition forms part of the company’s wider strategy to increase its investment in major retail destinations.

The move means that the company will now own and manage seven of the top 30 shopping centres in the UK.

Under the terms of the agreement, a payment of £35 million to ADIA will be deferred for two years.

Landsec estimates the income return on its initial £455 million outlay will be in the region of 7.5 per cent and expects the estimated rental value (ERV) to grow “meaningfully” in the coming years.

Liverpool ONE was opened in 2008 and has a footfall of around 22 million people per year.

Landsec said retail sales at the shopping centre have grown by five per cent over the past 12 months, with the location boasting an overall occupancy rate of 96 per cent.

“The top one per cent of the UK’s shopping destinations provide brands with access to 30 per cent of all in-store retail spend, which is why we continue to see brands focus on fewer, but bigger and better stores in the best locations,” said Mark Allan, chief executive at Landsec. “Liverpool ONE already has a great line-up of brands in a thriving location and we look forward to building on this with our leading operating platform to further add to its exciting growth story.”

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