Frasers Group is rapidly expanding its presence in the retail property sector, adding key shopping centres to its portfolio.
- The recent acquisition includes major retail destinations such as Princesshay in Exeter and Fremlin Walk in Kent.
- CEO Michael Murray highlights the intention to revitalise high streets and expand retail opportunities.
- The strategy involves integrating Frasers’ brands into these centres to drive growth and increase value.
- Frasers’ competitive approach leads to a notable rise in footfall and sales in acquired locations.
Frasers Group has been expanding its investment in shopping centres across the UK, recently acquiring the Princesshay Shopping Centre in Exeter, Fremlin Walk Shopping Centre in Kent, and Olympus Centre retail park in Gloucester. These locations add significant square footage to Frasers’ growing portfolio, which already included Frenchgate shopping centre in Doncaster, purchased earlier this year.
CEO Michael Murray states that these acquisitions align with Frasers’ strategy to support physical retail by turning these centres into major community retail destinations. According to Murray, this approach is not only about revitalising high streets but also about creating new growth opportunities for Frasers’ various retail concepts.
The group has strategically used its property acquisitions to house its own brands, such as Sports Direct, Flannels, and the new department store concept, Frasers. CFO Chris Wootton explains that this move allows Frasers to effectively underwrite the value of their property investments by serving as the anchor tenant, filling significant retail space that would otherwise remain vacant.
Frasers Group’s bold bidding strategy, often placing offers 10% higher than competitors, is part of its aggressive expansion plan. Even though retail analyst Nick Bubb criticises the focus on less affluent centres, the group’s strategy to occupy dominant shopping centres in such areas seems to prove beneficial. Frasers has also shown resilience in competitive markets by attempting to acquire notable centres like Meadowhall, even if unsuccessful.
The acquisitions have not only increased property holdings but also attracted new tenants to these shopping centres. Since taking over the Overgate Shopping Centre in Dundee, Frasers has signed leases with new brands and renewed commitments with existing retailers, underlining their effective management and appeal as landlords.
Frasers’ approach to property investment is characterised by a long-term perspective, aiming for sustained growth and opportunities to reinvest proceeds from property sales back into their business. CFO Wootton mentions flexibility in asset disposal to capture value and reinvest across the group, ensuring continued adaptation and growth.
Frasers Group’s strategic property acquisitions demonstrate its commitment to expanding and enhancing retail environments through thoughtful investment and brand integration.
