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An Abu Dhabi Investment Authority (Adia) subsidiary sold its 69% stake in shopping center Liverpool ONE alongside Grosvenor — who sold a 23% stake — to British property firm LandSec in a transaction valued at GBP 490 mn, according to a press release.
A GBP 35 mn payment to Adia will be deferred for two years, with the possibility of future payments to the sovereign wealth fund, depending on how the property performs.
Refresher: Adia appointed real estate and investment management provider JLL last year to find a buyer for its stake in the 1.6 mn sqft mall, CoStar reported last month. The property was valued at GBP 520 mn at the time, according to the outlet.
This is not Adia’s first divestment in the UK: It also sold its stake in 33 hotels under Marriott International brands in the UK back in November to US investment firms KKR and Baupost Group for GBP 900 mn.
Physical retail properties have been struggling in the UK due to the boom in online shopping, the Financial Times reported. Shopping mall prices have fallen significantly, “that they now cost significantly more to build than they were worth,” CEO of Landsec Mark Allan told the salmon-colored paper, though he expects the lack of future supply of shopping centres to help “boost the recovery in value of existing malls.”
OTHER M&A NEWS-
Ghitha Holding subsidiary Ghitha Aeroinvest terminated its agreement to acquire a 44% stake in Turkish air freight cargo company MNG Airlines, according to a disclosure (pdf) to the ADX. The transaction was valued at USD 211.2 mn, and was part of Ghitha’s plans to diversify its asset portfolio and strengthen logistical and distribution capabilities. The disclosure did not mention the reason behind the termination of the agreement.
