Land Securities to buy Metrocentre in Gateshead for £516m in cash

Land Securities has agreed to buy the Metrocentre shopping centre in Gateshead for £516m in cash, the FTSE 100 property company announced on Thursday, as it presses on with its bet on Britain’s biggest retail destinations.

The company said it had exchanged contracts to acquire a 100% stake from Tynehawk Holdings (Jersey) Limited, a holding company for investors who took control of the centre after the collapse of previous owner Intu in 2020. The centre generates about £41m of net rental income a year, implying a 7.9% income yield on the purchase price.

Landsec said the Metrocentre attracts more than 16 million visitors a year and generates roughly £650m of retail sales, with 282 stores across 1.86 million sq ft of lettable floorspace plus an adjacent retail park. Completion is conditional on the dissolution of a legacy Intu legal entity, expected next month, and bondholder consent.

“Our acquisition of Metrocentre represents a rare opportunity to obtain 100% control of a top-10 UK shopping centre,” said chief executive Mark Allan.

The deal will be funded partly by a roughly £500m equity issue, comprising a placing with institutional investors and a retail offer. Landsec, already the majority owner of Bluewater in Kent, said the purchase fits its plan to invest a further £1bn in major retail assets.

Shares in Land Securities fell 0.9% to 619p on Thursday.

Sources: The Times (https://www.thetimes.com/business/companies-markets/article/land-securities-buys-metrocentre-for-516m-bgh9gncjn); Land Securities Group PLC company announcement, 1 Oct 2026 (http://www.investegate.co.uk/announcement/rns/land-securities-group—land/landsec-acquires-100-stake-in-metrocentre-/9800416); Morningstar/Alliance News (https://www.morningstar.com/news/alliance-news/1790844008550229100/land-securities-buys-metrocentre-in-gateshead-raises-gbp500-million)