ADIA sells stake in Liverpool ONE to Landsec for $622 million
Deal News | Dec 18, 2024 | Zawya
The Abu Dhabi Investment Authority (ADIA) alongside Grosvenor, a UK property firm, has sold a 92% stake in the UK's Liverpool ONE shopping centre to Landsec for £490 million ($622 million). ADIA was the majority shareholder, selling a 69% stake, while Grosvenor sold a 23% stake. Although the payout specifics to each company are undisclosed, ADIA is to receive a deferred payment of £35 million in two years, with additional performance-related provisions. This transaction follows a previously uncompleted deal to Landsec and reflects Landsec's strategy to expand its retail portfolio. Grosvenor intends to reinvest the proceeds in its core business, indicating strategic growth and diversification intentions. Liverpool ONE, inaugurated in 2008, stands as a significant UK retail location.
Sectors
- Real Estate
- Investment Management
- Retail
Geography
- United Kingdom – The transaction involves a major shopping centre located in Liverpool, UK, indicating geographical relevance.
- United Arab Emirates – ADIA, the seller, is based in the UAE, marking geographical significance in terms of the participant's origin.
Industry
- Real Estate – This industry includes the operation and management of real estate properties such as shopping centres. It is relevant since the deal is about the sale of a large shopping centre.
- Investment Management – Involves overseeing and handling investments, crucial here as ADIA, a sovereign investor, manages large-scale investment transactions like the sale of Liverpool ONE.
- Retail – The retail sector involves the sale of goods to consumers. Liverpool ONE is a landmark retail destination, making the retail industry classification relevant.
Financials
- 490 million GBP – The total deal value as reported for the purchase of stakes in Liverpool ONE by Landsec.
- 35 million GBP – The deferred payment to ADIA, scheduled for receipt in two years.
- 7.5% – Expected income return on Landsec's initial outlay for the purchase.
- 455 million GBP – The initial outlay amount by Landsec for the purchase.
Participants
| Name | Role | Type | Description |
|---|---|---|---|
| Abu Dhabi Investment Authority (ADIA) | Selling Company | Company | A sovereign wealth fund from the UAE, which was a majority shareholder in Liverpool ONE. |
| Grosvenor | Selling Company | Company | A UK property firm that held a stake in Liverpool ONE, also selling its stake in the deal. |
| Landsec | Bidding Company | Company | A UK property investment firm that acquired a 92% stake in Liverpool ONE. |
| James Raynor | CEO of Grosvenor | Person | CEO of Grosvenor, provided strategic insights regarding the reinvestment post-sale. |