The Newshound

Landsec beats Mike Ashley to buy Gateshead's Metrocentre for £516m in rare top-10 shopping centre deal

From the Newshound archive · first published 1 October 2026 · last updated 2 October 2026.

Metrocentre in Gateshead, which draws over 16 million visitors a year and generates £650 million in retail sales, is being acquired by Landsec for £516 million.
Metrocentre in Gateshead, which draws over 16 million visitors a year and generates £650 million in retail sales, is being acquired by Landsec for £516 million.

Landsec, which already owns Bluewater in Kent and Liverpool One, has signed contracts to acquire a 100% stake in the Metrocentre in Gateshead from Tynehawk Holdings for £516m, reportedly seeing off competition from Mike Ashley's Frasers Group. The FTSE 100 property giant is launching a £500m equity fundraise to help finance the purchase, which covers the main shopping centre and a neighbouring retail park comprising 15 units. The deal will give Landsec three of the UK's top ten shopping centres and eight of the top 30. Completion is expected by the end of October, subject to bondholders' consent.

Metrocentre draws over 16 million visitors a year and generates £650m in retail sales across 282 stores at 95% occupancy.

The £516m price represents a net rental income yield of 7.9%, against current annual rental income of £41m.

The 52-acre site forms the centrepiece of a planned 4,500-home neighbourhood called Metro Riverside, being developed in partnership with Gateshead Council.

MoreBBC News - BusinessDeal to sell Gateshead's Metrocentre to real estate giant for £516m agreedThe TimesLand Securities to buy Metrocentre for £516mDaily MailBluewater owner Landsec to buy Metrocentre in £516m dealLBCLandsec to buy Metrocentre in £516 million dealAOL News UKMetrocentre shopping complex sold to Landsec in £516m dealPlace North EastLandsec agrees £516m deal to acquire 100% of Metrocentre - Place North EastBE NewsLandsec acquires Gateshead’s Metrocentre for £516m - BE NewsThe Northern EchoNew owner for Metrocentre as £516m takeover agreed - The Northern EchoFashionNetwork - The World's Fashion Business NewsLandsec adds Metrocentre to growing portfolio of top malls - FashionNetwork - The World's Fashion Business NewsAskTradersLandsec Agrees £516m Metrocentre Purchase and Launches £500m Share Raise - AskTraders
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