Gateshead's Metrocentre has been sold for £516m to LandSec, a London-based property firm that also owns Liverpool One and the Bluewater centre in Kent. The deal makes LandSec the new owner of one of the UK's biggest shopping centres.
Background to the sale
The Metrocentre was previously owned by Intu Properties, along with Eldon Square, the Trafford Centre in Manchester and many other shopping centres across the UK. Following Intu's collapse, the centre has been effectively owned by the companies that Intu had debt with.
The shopping centre was put up for sale and attracted significant interest from prospective buyers. It was rumoured that Mike Ashley's Frasers Group were among those interested in purchasing it.
Conditions and next steps
The deal is conditional on noteholders of Metrocentre Finance giving their consent to restructuring their loan, which is expected to happen next week.
Martin Healy, chairman of Metrocentre, said: “The proposed sale of Metrocentre to Land Securities will be a significant step forward for the centre and a positive outcome for all of Metrocentre’s stakeholders, recognising the strength of Metrocentre as a top 10 retail and leisure destination in the UK, following a sustained investment programme.”
He added: “Once completed, it will see Metrocentre join a market leading operator with an excellent track record of owning and operating many of the country’s top retail and leisure destinations. Land Securities’ experience, scale and commitment to developing major retail destinations make it especially well placed to support Metrocentre through its next phase of development and growth.”
History and impact
The Metrocentre is celebrating its 40th anniversary this year, having been built by Sir John Hall on a former power station ash dump into one of the largest shopping and leisure complexes in Europe. It was one of the UK’s first out-of-town shopping malls and transformed the retail industry.
The centre employs around 11,000 people and has nearly 300 shops and other businesses, with annual total sales of around £650m.
