Landsec takes full control of Gateshead’s Metrocentre

London-based commercial property giant Landsec has acquired a 100% stake in Gateshead’s Metrocentre from Tynehawk Holdings (Jersey) Limited for £516 million.

The Metrocentre generates annual retail sales of approximately £650 million, with 282 stores across 1.86 million sq ft of lettable floorspace. Overall occupancy is currently at 95%, with a 4.5-year average lease term and a very strong line-up of key brands which include M&S, NEXT, Zara, Primark, JD Sports, Bershka, Stradivarius, Sephora, Lefties and New Look.

The acquisition of the Metrocentre, which sits around two miles from Newcastle and is a top 10 UK shopping centre destination based on sales – attracting over 16 million visitors per year - also includes an adjacent retail park, which covers 0.2 million sq ft of space across 15 units.

Mark Allan, Chief Executive Officer of Landsec, said: “Growing our investment in major retail destinations remains our highest conviction call, given the high income yields and attractive income growth on offer for the right assets.

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 this 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.”

The acquisition is in line with Landsec’s strategy to invest a further £1 billion in major retail assets. Following completion of the acquisition (expected on 9 October 2026) Landsec will own three of the top 10 and eight of the UK’s top 30 shopping centres – including Bluewater in Kent and Gunwharf Quays in Portsmouth - with major retail destinations making up circa 46% of the company’s annual rental income.