Landsec has agreed to acquire the Metrocentre shopping complex in Gateshead for £516 million, expanding its presence in some of the UK's largest retail destinations.

The FTSE-listed property group has exchanged contracts to acquire a 100% stake in Metrocentre from Tynehawk Holdings. The transaction is expected to be completed by the end of October, subject to outstanding conditions including bondholder consent.

Metrocentre is among the UK's major shopping centres, attracting more than 16 million visitors a year and generating around £650 million in retail sales. The site has approximately 282 stores across 1.86 million square feet and is currently around 95% occupied.

To help fund the acquisition, Landsec launched an equity issue of around £500 million. The company said the deal forms part of its wider strategy to invest a further £1 billion in major retail assets.

Following completion, Landsec expects to own three of the UK's top 10 shopping centres and eight of the top 30, strengthening its retail property portfolio alongside assets including Bluewater and Liverpool ONE.

The deal highlights continued investment in large UK retail destinations as property companies focus on established shopping and leisure locations with significant consumer footfall.