Gateshead's Metrocentre subject of takeover
Property giant Landsec acquires full stake
Landsec, a prominent owner of retail and leisure portfolios in the UK, has exchanged contracts to acquire a 100% stake in Metrocentre, Gateshead from Tynehawk Holdings (Jersey) Limited for £516 million. Known for attracting over 16 million visitors annually, Metrocentre is a leading shopping destination in the UK with 282 stores spanning 1.86 million square feet.
Adding to its expansive retail portfolio, the acquisition includes an adjacent retail park consisting of 15 units across 0.2 million square feet. With a strong line-up of international brands such as Apple, Zara, and Lego, Metrocentre enjoys a 95% occupancy rate and a 4.5-year average lease term. This move aligns with Landsec’s strategy to invest a further £1 billion in major retail assets.
Funding for the acquisition is expected through an equity issue and existing debt facilities. Mark Allan, CEO of Landsec, highlighted the strategic importance of the acquisition, stating it provides a unique opportunity for income and value growth at Metrocentre.
Completion of the acquisition is contingent upon the dissolution of a legacy entity from the Intu Properties group by 9th October 2026 and bondholder consent to restructuring, with support secured from more than 80% of bondholders. The acquisition is expected to finalize by the end of October.