Finance Business Partner - Retail

Landsec has raised approximately £500 million through equity placing and retail offerings to partially fund the acquisition of a 100% stake in the Metrocentre shopping complex and further consolidate its retail portfolio. The UK real estate investment trust issued 83,345,000 new ordinary shares at 600 pence each, representing about 11% of its pre-issue capital. The new shares will be admitted to trading on the London Stock Exchange, increasing total voting shares to 828,500,780. Strong demand from institutional and retail investors, including participation by the CEO and CFO, underscores market confidence in the company's strategy to deepen exposure to prime retail assets. Landsec is one of the UK's largest listed real estate investment trusts, focusing on commercial property including office, retail and mixed-use assets.

Landsec to buy Metrocentre shopping centre near Newcastle for £516m. Share Search You are here: 1st Oct 2026 07:45 (Sharecast News) - Landsec said on Thursday that it has agreed to buy the Metrocentre shopping centre near Newcastle for £516m. Based on in-place net rental income of £41m, the cash consideration implies an in-place net rental income yield of 7.9%. At this price, Metrocentre offers "an attractive combination of a high day-one income return, strong future rental growth prospects and an expected low double-digit unlevered IRR," Landsec said. The acquisition will be funded through an equity issue and existing debt facilities. Landsec said Metrocentre is a top-10 shopping centre destination in the UK based on sales and attracts more than 16 million visitors per year. It generates retail sales of around £650m, with 282 stores across 1.86 million sq. ft. of lettable floorspace. The acquisition includes an adjacent retail park, which covers 0.2 million sq. ft. of space across 15 units. The company also provided an update on recent trading. It said that since the start of this year, it has continued to see strong customer demand for its "best-in-class" assets. As a result, lettings over the five months to the end of August have been comfortably ahead of ERV, with re-lettings and renewals well ahead of previous passing rent. Based on this "continued positive momentum", Landsec continues to expect to deliver around 3-5% growth in like-for-like net rental income for the year to the end of March 2027. Landsec said it was well placed to deliver an acceleration in earnings per share growth in both the near and medium term, with the potential to deliver around 5% compound annual growth in EPRA EPS through to FY30, the vast majority of which is derived from its existing portfolio and operating platform. Chief executive Mark Allan said: "Growing its investment in major retail destinations remains its 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 versus 1% for the average UK market, and footfall continuing to gain market share." See latest RNS on Sharecast

Landsec seals £516m deal for Metrocentre. Landsec has exchanged contracts to buy the Metrocentre in Gateshead from Tynehawk Holdings for £516m in the largest shopping centre transaction of the year. Metrocentre is a top 10 UK shopping centre destination based on sales and attracts more than 16 million visitors a year. The 1.86m sq ft centre generates annual retail sales of £650m across 282 stores. To fund the acquisition, the FTSE-100 REIT will issue £500m of new shares; it expects the overall transaction to be earnings per share accretive in FY28. The deal, which reflects a net rental income yield of 7.9%, includes an adjacent retail park spanning 200,000 sq ft across 15 units. "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," said Landsec chief executive Mark Allan. "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." The acquisition is the latest in Landsec's strategy to invest £1bn in major retail assets. Landsec now owns three of the top 10 and eight of the UK's top 30 shopping centres, with major retail destinations making up 46% of the company's annual rental income. Landsec's last major shopping centre deal saw the REIT acquire Singaporean sovereign wealth fund GIC's 17.5% stake in Bluewater shopping centre for £120m in 2024. "The centre somewhat fits within Landsec's unwritten 'city centre shopping centre' strategy. It is on the other side of the Tyne to Newcastle town centre, but a very short journey from it," said Oli Creasey, head of property research at Quilter Cheviot. "The upsides in the transaction are compelling. While there will be some net asset value dilution, the combined deal is expected to be earnings per share accretive from next year (starting in March 2027), and will also bring debt down marginally. "Interestingly, while Landsec shares are down marginally this morning [1 October], the impact is less than we would have estimated and no worse than the sector in general. This has the potential to change, but first impressions are that the deal is well-received and investors are willing to look through any dilutive effects (or are more focused on the accretive ones)." Overall occupancy at Metrocentre is 95%, with a 4.5-year average lease term and a line-up of international brands including Apple, Sephora, Zara, M&S, Bershka, Stradivarius, Next, Lego, Primark, JD Sports and Lefties. 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. "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."