Landsec in £516 million Metrocentre mall swoop

A real estate firm has agreed a £516 million shopping centre deal.

Landsec is set to buy the Metrocentre.

Bosses say the swoop for the sprawling 280-plus store Gateshead-based mall “represents a rare opportunity” for Landsec “to obtain 100 per cent control of a top-10 UK shopping centre”, adding it will “support Metrocentre through its next phase of development and growth.”

The deal is expected to complete at the end of October.

Landsec will buy the Metrocentre from Tynehawk Holdings, the investor group operator that took control of the shopping centre business after the collapse of previous owner Intu in 2020.

The sale is conditional on a legacy legal entity from Intu being dissolved and consent from bondholders.

Landsec expects to fund the deal through an equity issue and existing debt facilities.

Mark Allan, chief executive of Landsec – whose extensive retail portfolio already includes Liverpool ONE and Trinity Leeds – said its move for the Metrocentre, which attracts more than 16 million shoppers a year to its 280-plus store estate, strengthens the company’s “conviction call to grow its investment in major retail destinations”.

He added: “The Metrocentre offers the scale, relevance and quality of catchment where demand from brands is highest.

“It is exactly the type of destination where our market-leading platform can unlock further income and value growth.”

Martin Healy, Metrocentre chair, added: “The proposed sale will be a significant step forward for the centre and a positive outcome for all its stakeholders.

“Once completed, it will see Metrocentre join a market leading operator with an excellent track record of owning and operating many of the country’s top retail and leisure destinations.

“We would like to thank everyone who has contributed to Metrocentre’s development over the last six years.” 

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