Landsec acquires Gateshead’s Metrocentre for £516m
Landsec has exchanged contracts to acquire a 100% stake on the Metrocentre shopping centre in Gateshead for a net cash consideration of £516m.
With 1.86 million sq ft of lettable floorspace, Metrocentre is home to 282 stores and generates annual retail sales of approximately £650m. The acquisition also includes an adjacent retail park, which covers 0.2 million sq ft of retail space across 15 units.
Overall occupancy at Metrocentre is 95%, with an average lease term of 4.5 years to expiry. Tenants include Apple, Sephora, Zara, M&S, Bershka, Stradivarius, Next, Lego, Primark, JD Sports, and Lefties.
Landsec said the acquisition – which is expected to be funded through an equity issue and existing debt facilities – is in line with its strategy to invest a further £1bn in major retail assets.
The acquisition comes as Landsec sees strong operational performance over the past financial year. The group’s lettings over the five months to 31 August 2026 have been ahead of ERV, with relettings and renewals well ahead of previous passing rent. Based on this continued momentum, Landsec continues to expect to deliver around 3-5% growth in like-for-like net rental income for the year ending 31 March 2027.
Mark Allan, chief executive officer of Landsec, said: “Growing our investment in major retail destinations remains our highest conviction call, given the high income yields and attractive income growth on offer for the right assets.
“Our acquisition of Metrocentre represents a rare opportunity to obtain 100% control of a top-10 UK shopping centre. 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. This established trend remains clear, with retail sales across our existing major retail platform up 26% since March 2022 vs 1% for the average UK market, and footfall continuing to gain market share.
“In this context, Metrocentre is exactly the type of destination where our market-leading platform can unlock further income and value growth. Our track-record in this is proven, with occupancy across our existing major retail portfolio up to a two-decade high, rental uplifts on relettings and renewals having doubled to 15%, and like for like income growth of 5.5% over the full year to March 2026.”