Blue-chip real estate trust Land Securities Group PLC (LSE:LAND) has increased the size of its shopping centre footprint through the acquisition of a 92% stake in Liverpool ONE for nearly half a billion pounds.
According to LandSec’s metrics, the company now owns seven of the top-30 shopping centres in the UK.
LandSec hinted that Liverpool ONE tenants will see sizable rent increases.
“The centre's current rental income is 4% below ERV (estimated rental value), so combined with the benefits of Landsec's leading operating platform, strong brand relationships and further ERV growth, rental income is expected to grow meaningfully in the coming years,” LandSec said in a statement.
LandSec is expected to pursue fewer but more upmarket store openings at Liverpool ONE, a trend already seen with the recent openings of M&S, Sephora, Uniqlo and Zara at the site.
The shopping centre was acquired from the Abu Dhabi sovereign wealth fund and Grosvenor.