Liberty International sold a 40 per cent stake of its MetroCentre shopping centre in Gateshead today to the Singapore government, valuing the property at more than £1 billion.

Liberty said that GIC, the investment arm of the city state of Singapore, would buy the stake from Capital Shopping Centre, its subsidiary, for £426 million, valuing CSC's interest at £1.07 billion.

CSC, which also owns Lakeside shopping centre, owns a 90 per cent economic interest in MetroCentre.

Under the deal, CSC will continue to manage MetroCentre, which it acquired in 1995, Liberty said.

The 1.8 million sq ft centre has more than 330 shops and is visited by more than 24 million shoppers a year.

Sir Robert Finch, the chairman of Liberty, the UK's third-largest listed property company, said that the proceeds from the sale would be used to fund its expansion.

"We firmly believe that GIC Real Estate holds similar investment values to Liberty International and we look forward to working with it closely in the future," he said in a statement.

"The proceeds of this transaction will enable Liberty International to continue to expand its overall business, which includes a £1 billion development programme."

Dr Seek Ngee Huat, the president of GIC RE said: "GIC RE invests in a wide range of property sectors around the world, and this investment is an excellent addition to our global portfolio of retail properties such as our interests in Bluewater Shopping Centre in Kent, UK, Roma Est in Rome, Italy, Sunway Pyramid Mall in Malaysia, and Queen Victoria Building in Australia."

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