Land Securities is to sell its sole leisure asset to focus on retail for REIT conversion next year
It is putting the Gate leisure scheme in Newcastle on the market for around £72.5m.
The 208,000 sq ft (19,330 sq m) restaurant and cinema scheme has tenants including casino operator Aspers, Empire cinema and bar Tiger Tiger.
Mark Ashton, head of retail portfolio management at Land Securities, said: ‘We have been able to create significant value for shareholders through the development and letting of The Gate, Newcastle. As the only leisure asset within the portfolio and strong demand being shown for the sector, we believe it is a sensible time to market the property for sale. The proceeds of the sale will be reinvested in other opportunities within the core areas of Land Securities’ business.’
He added: ‘Over the last 10 years Land Securities has played its part in the regeneration of Newcastle. We continue to own and manage The Bridges at Sunderland and Retail World in Gateshead and will, therefore, remain a significant investor in the north-east region.’
Jones Lang LaSalle will market the scheme in the new year.