Deal to sell Metrocentre for £516m agreed
Landsec says it has exchanged contracts to buy 100% of the Metrocentre from Tynehawk Holdings.
Deal agreed to sell Metrocentre for £516m
The Metrocentre draws more than 16 million visitors every year
A deal has been agreed to sell one of the UK’s largest shopping centres to a real estate giant for £516m.
Landsec said on Thursday that it would launch a £500m equity fundraising to help finance a deal to buy the Metrocentre in Gateshead, which attracts more than 16 million visitors annually.
Landsec, the majority owner of retail destinations Bluewater in Kent and Liverpool One, told shareholders it had exchanged contracts to acquire 100% of the Metrocentre from Tynehawk Holdings.
Mark Allan, the company’s chief executive, said the purchase "represented a rare opportunity to obtain 100% control of a top-10 UK shopping centre".
Earlier reports had suggested Frasers Group - owned by former Newcastle United owner Mike Ashley - had also expressed interest in the centre.
Metrocentre produces retail sales of around £650m a year across its 282 stores.
Tynehawk is the holding company for a group of investors who took control of the shopping centre business after previous owner Intu collapsed in 2020.
Completion of the deal - which also includes an adjacent retail park with 15 units - depends on a legacy legal entity from Intu being dissolved and on bondholders giving consent.
Landsec said it expected to finance the deal through the £500m equity raise and existing debt facilities.
Landsec had previously said it intended 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."