News of Aberdeen’s Union Square being sold to the owners of London’s Canary Wharf has sparked a reaction from readers on social media.
The Press & Journal highlighted the sale of the popular shopping mall for a potential £140 million yesterday (Aug 2).
Brookfield, one of the world’s biggest real estate companies, is understood to be the preferred bidder for the food and retail hub, which is being sold by Hammerson.
It is understood the purchase of Union Square would become its first retail unit in the UK.
The company currently operates Brookfield Place in New York, Potsdamer Platz in Berlin, Design District in Miami and the Ala Moana Center in Honolulu.
The sale has drummed up a lot of interest with a flurry of social media comments from readers.
Readers react
Posting on Facebook, Alx Jrvis said: “First Union Square helps decimate union street shopping, then gets sold for a massive loss to London capital.
“I hope this will be the wake-up call our city’s leaders need to start diversifying our economy before it’s too late.”
Duncan Gerrie said: “New owners, high unit rental cost, expensive rates means expensive inflated costs to customers.”
Ian Prise said: “£250 million to build. Sold 13 years later for £140 million. Just shows how much the value of retail property has dropped.”
The need for affordable parking in the city centre was highlighted by Paddy Kelly.
He said: “I’d like to know how many thousands the carparks make a day.
“If the city council invested in city center affordable parking I’d say they could make a tidy profit back after a few years. Then put the profit back into the city.”
Anne Davidson replied “absolutely right” and Jackie Black said “yip”.
Who are Brookfield?
With over £600billion of assets under management, Brookfield operates in over 30 countries and employs more than 150,000 people.
Speaking about its retail properties the website states: “At Brookfield Properties, we believe retail should be anything but typical.
“It’s why we’re integrating shopping, dining, entertainment, and more to reimagine retail experiences everywhere — from Brookfield Place in New York and Potsdamer Platz in Berlin to the Design District in Miami and the Ala Moana Center in Honolulu.
“Because for us, retail isn’t just about managing properties or redeveloping malls. It’s about creating spaces that draw consumers in and inspire communities. And, more than anything, it’s about bringing people together.”
Reader Edward Stewart commented: “Hopefully we can get some good London shops here like Ettinger and Fortnum and Mason.”
The Press and Journal revealed earlier this year that Aberdeen’s Union Square was being lined up for a sale by its owner, with property giant JLL understood to have been tasked with finding a buyer for shopping centre.
The city centre site – which cost £275million to build and is home to the likes of Apple, BrewDog, H&M and Zara – had been valued at £150million by selling agents JLL.
New owner must make it ‘vibrant and attractive’
Robert Gordon University senior lecturer in retail and marketing Andrew Turnbull said: “On the one hand, the sale of Union Square shows that offline retail is alive and well.
“A healthy sum has been paid and the prospects of Aberdeen’s premier shopping mall will have justified the investment.
“Footfall is recovering, with a good mix of retailers and a plum city centre location. Accessible parking and high visibility are further positives.
“On the other hand, the discounted price tag, at £10 million less than the asking price, plus the recent sale of other retail hubs in the city, and levels of footfall still well below the pre-pandemic period, indicates that offline shopping has yet to recover fully from the effects of the lockdown.
“Online shopping too, is now mainstream, and the trend will not be reversed in the foreseeable future.
“The new owners must work with their retail tenants to ensure a vibrant, attractive, and appealing mix of outlets, providing not just a wide range of merchandise, good displays, and apparent value for money, but also an enjoyable and entertaining experience, in the sense of a good day out, and a range of other activities included.”
Brookfield has been contacted for comment.
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