19th Aug 2026 12:56
(Alliance News) - Land Securities Group PLC might consider an equity fundraising to finance its rumoured GBP500 million acquisition of the Metrocentre mall in Gateshead, The Times reported on Tuesday.
The Metrocentre, which is one of the biggest shopping centres in Europe, was put up for sale by the Metrocentre Partnership earlier this year.
Landsec is reportedly close to concluding the deal, after competing with rivals including Mike Ashley's Frasers Group PLC and property company Hammerson PLC.
However, the London-based property developer may have to pay more than the asset's current valuation and might consider an equity fundraising, said an analyst at the investment bank Peel Hunt quoted by The Times.
The potential fundraising comes as Landsec's strategy of expanding its retail portfolio and entering the residential rental market through the sale of office assets has slowed. The company has sold only one asset this summer: a block next to Liverpool Street station for GBP63 million.
Matt Saperia, a real estate analyst at Peel Hunt, said an equity raise could help fund the acquisition. Alternatively, if Landsec financed the deal entirely through additional debt, its loan-to-value ratio could rise to around 42%, compared with its internal target of below 35%.
Landsec last raised equity from shareholders in 2009, following the global financial crisis. Chief Executive Mark Allan said earlier this year that he would be open to an equity raise "if it's [for] something that is the right quality of asset and it is growing earnings".
Landsec shares were down 0.7% at 681.50 pence on Wednesday afternoon.
By Camilla Borri, Alliance News reporter
Comments and questions to [email protected]
Copyright 2026 Alliance News Ltd. All Rights Reserved.
Related Shares:
Land SecuritiesFrasers GroupHammerson