Mike Ashley’s Frasers Group to buy two shopping centres in £100m deal
Mike Ashley is gearing up to purchase two shopping centres in an £100 million deal, in a sign that the retail sector might be starting to stabilise.
Frasers Group, majority owned by Ashley, is in the final stages of negotiations to acquire The Mall in Luton and the Overgate centre in Dundee, The Sunday Times reported.
The estimated value of these purchases stands at £70 million and £30 million, respectively.
Frasers declined to comment on the report.
Frasers Group will be hoping to get a good price for the centres, as the Covid-19 pandemic and huge growth in online shopping in recent years slashed UK shopping centres’ revenues, forcing some stores to close.
Data from MSCI Real Assets shows that since June 2018 the average value of shopping centres has declined by 67 per cent.
Frasers, now headed by Ashley’s son-in-law Michael Murray, has been on the lookout for acquisitions following a strong recovery from the pandemic.
The deal comes after the Sunday Telegraph reported last week that Frasers Group is finalising a move to roll out its own buy-now, pay-later (BNPL) scheme which will allow shoppers to borrow up to £2,000, as well as other financial products under a scheme called Frasers Plus.