Land Securities to sell the Gate - commercial mortgages

21 December 2006

Land Securities has announced that it intends to sell the Gate leisure complex in Newcastle for an estimated £72.5 million.

In a decision that may affect investors with commercial mortgages, the firm has chosen to sell the 208,000 sq ft complex, which currently offers 19 venues, to focus on other assets, Property Week reports.

While the company''s decision is motivated by the opportunity to convert to a real estate investment trust next year, Mark Ashton, head of retail portfolio management at Land Securities, stated that the firm has made substantial gains from the development of the area.

"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," he remarked.

The Gate complex, which was opened in November 2002 on the site of Newgate House, formed part of the Grainger Town Rejuvenation Project and took three years to complete.

Land Securities invested an estimated £75 million in the project during the development of the leisure complex.