Deal to sell Metrocentre for £516m agreed

A deal to sell one of the country's biggest shopping centres to a real estate giant for £516m has been agreed.

Landsec said it would launch a £500m equity fundraiser to help fund a deal to buy the Metrocentre in Gateshead, which attracts more than 16 million visitors each year, on Thursday.

Landsec, which is the majority owner of retail sites Bluewater in Kent and Liverpool One, told shareholders it had exchanged contracts to buy 100% of the Metrocentre from Tynehawk Holdings.

Mark Allan, chief executive of the firm, said the acquisition "represented a rare opportunity to obtain 100% control of a top-10 UK shopping centre".

Reports previously suggested Frasers Group - owned by former Newcastle United owner Mike Ashley - had also shown interest in the centre.

Metrocentre generates retail sales of about £650m a year across its 282 stores.

Tynehawk is the holding firm for a group of investors who took control of the shopping centre business after the collapse of previous owner Intu in 2020.

Completion of the deal - which includes an adjacent retail park with 15 units - is conditional on a legacy legal entity from Intu being dissolved and consent from bondholders.

Landsec said it expected to fund the deal through the £500m equity raise and existing debt facilities.

Landsec previously said it planned to invest a further £1bn in major retail assets as part of its strategy.

Allan said: "Metrocentre offers the scale, relevance and quality of catchment where demand from brands is highest, as they focus on fewer, bigger, better stores in the strongest locations."

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