Frasers Group’s ambition for wider shopping centre ownership continues with what could be its biggest move yet. The major UK retail group is understood to be considering taking a 50% stake in Manchester Arndale shopping centre.
The Sports Direct, Flannels and House of Fraser owner, is said to be in discussions after property giant Landsec reportedly pulled out of talks over the £235 million stake fee, according to Retail Week.
In May, property agent JLL confirmed that it is selling the stake on behalf of the former INTU RCF Investors. The other 50% stake is owned by M&G Real Estate, part of M&G Investments.
Featuring over 200 stores with key tenants including Next, Zara, JD Sports and Boots, Manchester Arndale is one of the North West’s top retail and leisure destinations.
“Renewals demonstrate the ongoing confidence retailers and leisure operators have in Manchester Arndale and reflects the strength of the centre’s offering, underlining its status as a must-visit shopping and leisure destination”, operator Global Mutual said earlier this summer.
With high levels of footfall, attracting 46 million visitors in 2024, Steve Gray, its head of European Retail Asset Management, added: “Their renewed commitment is a testament to the strong trading environment, impressive customer base, and dynamic mix of brands that the centre offers. We look forward to building on this momentum with more exciting updates in the coming months.”
The move continues Frasers Group’s strategy to combine its host of physical retail banners with full or part ownership of key shopping centres. These include the 600,000 sq ft Princesshay shopping centre in Exeter, the the 350,000 sq ft Fremlin Walk centre in Kent, Doncaster’s Frenchgate shopping centre plus Gloucester’s Olympus Centre retail park and Belfast’s Boucher Shopping Park.
Frasers has also invested in the Overgate Centre in Dundee, The Mall in Luton and Junction 32 outlet in Yorkshire, and the 160,000 sq ft St Nicholas Arcade (St Nics) shopping centre in Lancaster, the Robin Retail Park in Wigan, Berryden Retail Park in Aberdeen, plus retail parks in Thurrock, Cheshunt, on the outskirts of the M25, and Cheetham Hill, near Manchester.
