Frasers considers £500m Metrocentre swoop
Knight Frank has been appointed to oversee the sale of the 2m sq ft Gateshead shopping centre, with initial bids expected next month.
If the sale went ahead, it would be the largest property acquisition to date for the Mike Ashley-owned retail giant.
Metrocentre is the largest UK shopping destination outside London, attracting around 16m visitors last year, and is managed by CBRE through its Sovereign Centros division.
On top of that, 52 acres of brownfield land surrounding the centre are set to be developed into a 4,500-home neighbourhood.
The government is currently considering the MetroGreen Area Action Plan, which proposes 990 homes around the Metrocentre by 2030 as part of the wider scheme. Supported by Mott MacDonald, Gillespies, and LDA Design, it will be delivered by Metrocentre in partnership with Gateshead Council.
Based on a ’20 minute destination’, which aims to have all residents’ needs located within a 20 minute walk, the carbon neutral district sits three miles from the Newcastle-Gateshead quayside. A ‘reimagined’ Metrocentre will sit at the heart of the neighbourhood, with retail, a hotel, workspaces, and leisure options, as well as the ability to supply renewable energy to residents.
The rumoured bid follows Frasers recent acqusition of York Designer Outlet and East Midlands Designer Outlet from Aviva Investors. The price was undisclosed but the assets were listed for sale for a combined price of around £400m.
The retail company has a value of approximately £3.3bn and is led by chief executive Michael Murray, who confirmed in April the firm’s intention to keep acquiring assets. Speaking at the time of the York Designer Outlet purchase, he said:
“These strategic acquisitions reinforce our vision, leveraging strong partnerships with leading global brands to unlock mutual value – supporting their outlet strategies while driving growth.
“Today, we own over one-fifth of the UK outlet market and have a clear ambition to grow our share further.”
