Landsec has announced that it has agreed to acquire 100% of Metrocentre in Newcastle for £516m from Tynehawk Holdings, financed through an equity issue and existing debt facilities.

The deal is set to be funded by an equity issue announced by the property development and investment company to raise £500m in gross proceeds, which will be used to partially fund the acquisition, along with the further consolidation of Landsec’s interests in its existing retail portfolio for a net cash consideration of around £100m.

Metrocentre is a “well-invested” retail and leisure destination, which generates footfall of over 16 million and retail sales of around £650m, making it a top 10 shopping centre in the UK by sales.

Its acquisition falls in line with Landsec’s strategy to invest a further £1bn in major retail assets and further expand its platform.

Following completion of the Metrocentre acquisition, the property development and investment firm will own three of the top 10 and eight of the UK’s top 30 shopping centres.

CEO at Landsec, Mark Allan, said the acquisition represents a "rare opportunity" for the company.

He concluded:"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 retail 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, which further underpins the attraction of increasing our ownership in this high-quality portfolio."

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