The Metrocentre shopping centre in Gateshead has been put up for sale, with Mike Ashley's Frasers Group tipped as a potential new owner. The retail group, led by the former Newcastle United owner, is expected to make a multi-million pound bid for the centre, which supports thousands of jobs and attracts millions of shoppers annually.
Background and Sale Process
Since 2020, the Metrocentre has been operated by Sovereign Centros after previous owners Intu collapsed. Intu owned major shopping centres across the UK, including a half share in Newcastle's Eldon Square. The centre is now being marketed by property agent Knight Frank with a price tag of around £500m. The sale process begins two months after the Metrocentre and Gateshead Council announced plans for a 'city within a city' called Metro Riverside, which would create over 4,500 homes and 5,000 jobs on land by the River Tyne.
Recent Developments and Performance
Recent weeks have seen new store openings at the Metrocentre, including P Louise and Lovisa. A spokesperson for the centre said: 'Metrocentre's sustained strong performance, combined with increasing investor interest, has led us to move forward with a sale process to support the next phase of its development.' A targeted investment programme of over £60m since late 2020 has transformed the centre, attracting strong occupancy and new brands. Footfall reached over 16m for the first time since the pandemic, up 5.14% year-on-year, with continued income growth.
History and Future Prospects
First opened 40 years ago on the site of a former power station, the Metrocentre was developed by Sir John Hall's Cameron Hall Developments with backing from the Church Commissioners. It is the UK's second largest shopping centre, behind only Westfield in London, with hundreds of shops, restaurants, a cinema, leisure facilities, and a health centre. Reports suggest Frasers Group may bid £500m, with property giant Landsec also a likely contender.
