Landsec eyes £500m acquisition of Gateshead’s Metrocentre
Landsec is reportedly looking to acquire the Metrocentre shopping centre in Gateshead, which was put on the market earlier this year for £500m.
The FTSE 100-listed real estate investment trust is understood to have emerged as the frontrunner to acquire the shopping centre, according to The Times, seeing off interest from Frasers Group and Hammerson.
The Metrocentre Partnership, which includes the Church Commissioners and Singapore’s sovereign wealth fund, placed Metrocentre up for sale in June, although it is understood that Landsec could pay well in excess of the £500m asking price. This could mean that the REIT may have to ask shareholders for additional funds.
Spanning two million square feet, Metrocentre is one of the largest shopping centres in Europe and is home to tenants such as Zara, JD Sports, Marks & Spencer, Primark, and Urban Outfitters. Recent additions include Hollister, Lovisa, and KENJI.
If an acquisition is completed, Metrocentre would join the likes of Liverpool ONE, Bluewater, and Gunwharf Quays within Landsec’s portfolio of shopping centres.