A number of reports have indicated that the group is preparing to acquire two urban shopping centres valued at a total of £100M.
Frasers Group is understood to be in advanced talks to buy The Mall in Luton and the Overgate Centre in Dundee which are valued at £70M and £30M respectively. Sources suggest that the group is in pole position to acquire both assets, although it was uncertain that the deals would be done due to valuations arising as an issue.
The Mall in Luton is being sold by the lender Wells Fargo. The company has in effect taken control of the asset from its previous owner Capital & Regional. Frasers Group already operates a Sports Direct store at the centre, and reports have stated that the brand intends to expand in to the centre’s former Debenhams store to create units for Flannels and USC.
Trade Publication React News first published the news that Frasers was interested in buying Dundee’s Overgate centre. According to the publication, the acquisition would “crystallise a big loss for Legal & General” which paid £125M for the shopping centre nine years ago.
Other retail parks owned by Frasers include those in Thurrock and Cheshunt, on the outskirts of the M25, and Cheetham Hill, near Manchester.
