Retailer Frasers Group Shops For £235M Stake In Top 5 UK Mall
Mike Ashley’s Frasers Group is weighing up a move to take a 50% stake in the 2M SF Manchester Arndale shopping centre as it continues to acquire malls and retail parks.
The fashion and retail giant, which owns Sports Direct, Flannels and House of Fraser, is understood to be in discussions to take an ownership stake in one of the country's top five malls after Landsec pulled out of talks over the £235M purchase, according to Retail Week.
The stake in the Arndale was taken over by investors after mall group Intu Properties went into administration in 2020 and was initially offered via a right of first refusal to joint stakeholder M&G Real Estate.
The mall subsequently came to market in May via adviser JLL, which is selling the stake on behalf of the former Intu revolving credit facility investors.
The potential acquisition forms part of Frasers’ strategy to combine its multibrand retail operation with the ownership of physical locations in a model that it has been developing over the past few years.
The retail group has already acquired a string of shopping destinations, and over the past year, Frasers Group has expanded its property portfolio with the purchases in October 2024 of the 600K SF Princesshay shopping centre in Exeter, Fremlin Walk in Kent, Gloucester’s Olympus Centre retail park and Doncaster’s Frenchgate Shopping Centre.
Frasers has also invested in The Overgate in Dundee, Luton Point, and Junction 32 outlet in Yorkshire, as it has focused on dominant local retail destinations.
“Securing properties which serve as the primary retail destination for the community remains a top priority for us,” Frasers Group CEO Michael Murray said at the time of last year’s acquisitions.
“Such acquisitions unlock new growth opportunities for our retail concepts, while revitalising high streets and physical shopping locations up and down the country.”
CBRE-owned Sovereign Centros, on behalf of M&G Real Estate, and Global Mutual are joint asset managers at Manchester Arndale and New Cathedral Street, while Metis Real Estate and Time Retail Partners are the centre’s retained letting agents. Green & Partners is the retained lease advisory agent.
