As Land Securities (Landsec) have agreed to buy Gateshead’s Metrocentre, Russ Mould, investment director at AJ Bell, believes the shopping centre will accelerate the property group’s position as a retail landlord.
He said: “Land Securities has made an important acquisition in the retail sector with the purchase of Gateshead’s Metrocentre, close to Newcastle city centre.
“Ranked as a top 10 shopping centre destination in the UK based on sales, Metrocentre becomes a flagship asset for the property group and accelerates its position as a retail landlord in larger shopping centres. Tenants include Apple, Zara and Marks & Spencer, the sort of names that won’t give Land Securities a sleepless night over whether the rent will be paid.
“Metrocentre looks like an ideal fit for Land Securities’ portfolio that includes stakes in retail sites across the UK such as Bluewater in Kent and Liverpool’s ONE centre. Land Securities also has a range of office workspaces.
“Mike Ashley won’t be pleased as Frasers Group was rumoured to be in the running to buy Metrocentre. Frasers’ Sports Direct and Flannels brands are prominently displayed on the front of the shopping centre, and the group is a key tenant.
“Frasers owns several shopping centres and retail parks in the UK and Metrocentre would have been a trophy asset to add to its portfolio, given Ashley’s association with Newcastle. As the former owner of Newcastle United Football Club, Ashley has deep ties with the city.”
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