The Metrocentre in Gateshead, the UK's second largest shopping centre, has been quietly put up for sale. The move comes ahead of a major multi-million pound redevelopment that includes plans to build thousands of new homes around the site.
Sale and Price Tag
Property agent Knight Frank is marketing the centre, with a price tag of around £500 million, according to Property Week. Reports from the BBC suggest Frasers Group, the retail giant behind House of Fraser and Sports Direct owned by former Newcastle United owner Mike Ashley, is in talks to buy the shopping centre. However, the company has declined to comment on any potential interest.
Redevelopment Plans
The owners of the Metrocentre have confirmed the centre is on the market, but a spokesperson said the sales process was still in its early days. The Metrocentre and its surrounding brownfield land have been earmarked to become a major new neighbourhood. A collaboration between the Metrocentre Partnership and Gateshead Council would see thousands of homes built on land near the River Tyne, creating a new neighbourhood called MetroRiverside. This development is designed around the 20-minute city concept, ensuring residents are within walking distance of most daily needs.
Current Investments and Footfall
The company has invested £60 million in the centre since 2020, and footfall has reached 16 million for the first time since the pandemic. While a sale price has not been made public, it is expected to fetch around £500 million.
Expansion of the Shopping Centre
Key expansion plans are already underway, including a new independent retail hub and the transformation of a 10,000 sq ft space into 10 new retail units and a cafe kiosk. There will be a focus on championing independent local shops and emerging brands, offering flexible leases. Construction began early in 2026, with units expected to be ready for occupation in the coming weeks. New stores due to open in 2026 include fashion chains like Bershka, Hollister, and global jewellery brand Lovisa.
A Metrocentre spokesperson said: "Metrocentre's sustained strong performance, combined with increasing investor interest from investors in major retail and leisure destinations, has led Metrocentre to move forward with a sale process to support the next phase of its development."
