Landsec to acquire Metrocentre in £516 million deal

Landsec has exchanged contracts to acquire a 100 per cent stake in the Metrocentre in Gateshead from Tynehawk Holdings (Jersey) Limited for a net cash consideration of £516 million. The transaction is expected to complete by the end of October.

Metrocentre is one of the top ten shopping centres in the UK, attracting over 16 million visitors annually and generating approximately £650 million in retail sales. The site features 282 stores across 1.86 million square feet of lettable space, along with an adjacent 0.2 million square foot retail park. The estate maintains a 95 per cent occupancy rate with tenants including Apple, Zara, M&S, and Next.

This acquisition aligns with Landsec’s strategy to invest an additional £1 billion into major retail assets. Following the deal, the property group will own three of the UK’s top ten shopping centres. Landsec Chief Executive Mark Allan noted that the move reflects a trend where brands are concentrating on “fewer, bigger, better stores in the strongest locations.”