Metrocentre records strong Q2
The Gateshead retail destination said that footfall had climbed by 7.2% year-on-year over the second quarter of its reporting period.
The centre had been boosted by a string of openings including Footasylum, Clarks and The Escapologist.
Go Outdoors has also this year committed to a 20,000 sq ft store in the former Wilko unit, while Victoria’s Secret is upgrading to a new 5,400 sq ft store and Mango has opened its largest store in the region.
Martin Healy, chairman of Metrocentre, said: “The renaissance of bricks and mortar retail continues, in spite of external forces like the continued cost-of-living crisis and inflationary squeeze. Metrocentre is additionally lifted by the high level of support it enjoys from its loyal visitor base, who make multiple visits per year.
“It’s heartening to see the sustained growth in footfall continue into the summer, which has driven a 10% increase – or c.1.4m rise – over the past two years, and with a set of strong new openings in recent months, we are confident the trend will continue throughout the year.
“The centre’s increasingly compelling offer has also attracted a strong pipeline of potential new lettings from an broad range of retail, leisure and hospitality brands which are expected to drive our momentum in the second half of the year and beyond.”
Financial highlights
- Net operating income (NOI) was at £35.6m at the end of Q2, up from £35.2m at year end)
- Strong leasing pipeline with a potential net income of £2m+, suggests continued strong NOI growth for the full year
- For the second quarter of 2024 net rental income rose to £7.8m, up from £7.5m in Q1 and ahead of the expected £6.7m
- Footfall grew 7.2% in Q2 vs Q2 2023, continuing the sustained growth since 2021 lockdowns
- ‘Last 12 months’ footfall of 14.8m, as measured on 24 August 2024, representing a 10% increase from the 13.4m at 31 March 2022
- Rent and service charge collection rates remain ‘very strong’ at 99.5% and 97.3% respectively, for the quarter
- Occupancy remained broadly constant, with physical occupancy of 85.7% and financial occupancy of 88.1%.
Operator Top Golf has now lodged its proposals for the Federation Brewery site at the centre, meaning receipts from the disposal could soon be secured – contracts were exchanged for the sale of the site in February, subject to planning permission.
In all, 42 new traders have been brought in since October 2020, covering 390,000 sq ft.
A £6m revamp of the Green Mall’s entrance, which will see a terrace of three south-facing F&B units introduced, was revealed in August by the centre’s asset manager Sovereign Centros from CBRE.
