Frasers Group, led by Mike Ashley, has expanded its property holdings by acquiring St Nicholas Arcade in Lancaster, signalling an ongoing commitment to physical retail.
- The St Nicholas Arcade, spanning 160,000 sq ft, attracts around four million visitors each year, housing prominent retailers such as Next, Shoe Zone, and Trespass.
- This acquisition is among several recent property investments by Frasers, including shopping centres in Luton, Dundee, and Doncaster.
- Frasers Group is also negotiating the purchase of the Maidstone shopping centre Fremlin Walk and exploring opportunities in Exeter.
- The group’s strategy involves integrating its own retail outlets within these centres, aiming to enhance their value and revitalise the retail sector.
Frasers Group has taken a significant step in expanding its property portfolio by acquiring the St Nicholas Arcade in Lancaster. This shopping centre, with a sprawling 160,000 sq ft space, hosts notable retailers including Next, Shoe Zone, and Trespass, attracting approximately four million visitors annually.
The acquisition in Lancaster is part of a broader strategy by Mike Ashley’s Frasers Group to increase its real estate assets. Recently, the group has made similar investments, purchasing The Mall in Luton for £58 million and the Overgate shopping centre in Dundee for an estimated £30 million. Additionally, in July, Frasers acquired the Frenchgate shopping centre in Doncaster.
Beyond these completed deals, Frasers Group is actively pursuing other acquisitions. The company is in discussions to purchase the Fremlin Walk shopping centre in Maidstone, offered at a considerably reduced price of £25 million compared to its previous purchase price of £110 million by M&G Real Estate in 2014. Furthermore, they are exploring the acquisition of a 50% stake in the Princesshay shopping centre in Exeter from the US-based asset manager Nuveen, who put it up for sale in June.
The strategy underpinning these acquisitions is to integrate Frasers’ own retail stores within these shopping centres, thereby unlocking their potential and stimulating the local retail environments. This approach reflects a strong belief in the viability of physical retail, a sentiment echoed by Frasers’ chief executive, Michael Murray, who stated that the acquisitions demonstrate a commitment to supporting the UK’s brick-and-mortar retail sector.
This acquisition marks a pivotal moment in Frasers Group’s ongoing expansion strategy within the retail property market, hinting at significant future developments.
