A SHOPPING centre operator is overhauling a flagship North-East mall in a £262m company-wide renovation.

Intu Properties will spend around £26m on Gateshead’s MetroCentre as it seeks to secure prolonged rental growth.

Bosses say the work will include refurbishment of the site and re-sizing of retail units.

The plans were unveiled today (Thursday, February 23) as Intu revealed its financial results for the year to December 31, which showed profits had slipped nearly £350m on a year ago as property revaluations bit.

However, the company saw net rental income rise from £428m a year ago to £447m, with underlying earnings also higher at £200m, and bosses say the MetroCentre plans will help strengthen lease returns, build on rising visitor numbers and overcome lingering anxieties from the Brexit vote.

The company has already invested in new restaurants at the MetroCentre, which was the vision of ex-Newcastle United chairman Sir John Hall, and agreed a deal with Next to more than double its space at the mall.

David Fischel, Intu chief executive, said officials were content with the business’ performance, coming as it has in the face of EU uncertainty and BHS store closures.

He also highlighted the impact of its new MetroCentre eateries and the ongoing benefits its Odeon cinema is delivering, adding the Gateshead centre’s fresh improvements will come as part of a £262m programme of change across its entire UK operations.

He added: “In a year remembered for its political turbulence, we are pleased to have recorded strong results.

“Consumer confidence has held up since the referendum and there is evidence that where customers are offered an enticing mix of retail, catering, and leisure, they come in large numbers, as our raised footfall over Christmas shows.

“While the environment is likely to be challenging as the full impact emerges of the EU referendum vote, we are well positioned as we focus on top-quality assets in prime locations with high occupancy and strong footfall.

“We intend to deliver continuing growth in like-forlike net rental income over the coming years.”

Mr Fischel added the MetroCentre was Intu’s third most valuable mall, behind only the Trafford Centre and Essex’s Lakeside, with a market value of £945m and annual property income of £51.6m.

Intu also runs Newcastle’s Eldon Square, where it previously re-developed its restaurant offering for customers.

According to latest figures, Eldon Square, which includes John Lewis, Fenwick, Next and Marks and Spencer, has a market value of £318m, with annual property income of £15m.