UK's Landsec to fund Metrocentre deal with £500 million equity issue

By Reuters News

Oct 1 (Reuters) - Land Securities Group LAND.L said on Thursday it had agreed to buy the Metrocentre shopping centre near Newcastle and would fund the deal through a £500 million ($662.75 million) equity issue and existing debt, as the British commercial property firm looks to expand its retail portfolio.

  • Landsec said it had exchanged contracts to acquire Metrocentre, Gateshead, from Tynehawk Holdings for a net cash consideration of £516 million

  • The equity issue comprises a placing to institutional investors through an accelerated bookbuild, a retail offer to UK investors via RetailBook, and a subscription of about £70,000 by the company's CEO and CFO

  • Landsec also agreed on terms for a separate acquisition worth about £100 million to further consolidate its existing retail portfolio, but gave no further details about the acquisition

  • Following completion of both deals, major retail destinations will account for about 46% of the company's annualised rental income

  • Landsec, which owns and manages offices in central London and shopping centres across the UK, said the deals also improve visibility on its potential to increase EPRA earnings per share to about 62 pence by fiscal year 2030

($1 = 0.7544 pounds)

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