The FTSE 100 landlord is understood to be nearing an agreement to buy the shopping centre after seeing off competition from Frasers Group and rival property group Hammerson.

Metrocentre, which spans around 2m sq ft and is one of the largest shopping centres in Europe, was put up for sale earlier this year by the Metrocentre Partnership.

The partnership includes the Church Commissioners and Singapore’s sovereign wealth fund, with the owners understood to have been seeking around £500m for the asset.

However, Peel Hunt analysts believe Landsec could ultimately pay “well in excess” of the asking price to secure the centre.

The potential acquisition would mark another major bet on physical retail for Landsec, which has been shifting more capital into large, dominant shopping destinations.

It already owns destinations including Liverpool ONE, Bluewater and Gunwharf Quays and has pledged to invest £1bn into retail acquisitions and improvement projects as part of its strategy.

Landsec snapped up a 92 per cent stake in Liverpool ONE for £490m in 2024 and increased its ownership of Bluewater with a £120m investment as it doubled down on high-performing shopping centres.

Its retail portfolio has continued to outperform the wider market, with like-for-like net rental income jumping 5.5 per cent in the year to 31 March 2026 and occupancy reaching a 20-year high of 97.7 per cent.

Sales across its retail destinations rose 6.3 per cent during the period, compared with 1.1 per cent growth across the wider UK market.

However, the scale of the Metrocentre deal could force Landsec to raise fresh funds from shareholders.

Analysts have suggested the landlord may need to launch its first equity raise since 2009 to finance the acquisition after making fewer asset disposals than expected. Funding the purchase entirely through debt could push its loan-to-value ratio to around 42 per cent, above its longer-term target of below 35 per cent.

Landsec shares fell 2.7 per cent following speculation that a fundraising could be required.

The property giant emerged as the preferred bidder for Metrocentre last month, beating Frasers Group to enter exclusive talks over the site.

Retail Gazette reported in June that Frasers Group was considering its own £500m offer for the centre, with Landsec among several parties circling the asset at the time.