Mike Ashley eyes two shopping centres in £100m deal
Frasers Group is in advanced talks to buy the Overgate centre in Dundee for £30m, along with The Mall in Luton in a £70m deal
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Mike Ashley has lined up a £100m acquisition of two shopping centres, according to The Times.
Frasers Group is in advanced talks to buy the Overgate centre in Dundee for £30m, along with The Mall in Luton in a £70m deal.
The Overgate centre is currently owned by Legal and General, who acquired it from Landsec nine years ago in a £125m deal.
The Mall in Luton is being sold by the lender Wells Fargo, which has in effect taken control of the asset from its previous owner, the listed landlord Capital and Regional.
Frasers already operates a Sports Direct store in The Mall, and is reportedly planning to carve up the centre’s former Debenhams store into outlets for Frasers-owned chains such as Flannels and USC.
Sources cautioned that while Ashley was in pole position to buy both assets, a fee was yet to be agreed and it was not certain that the deals would be done.
It comes amid a period of planned expansion for Frasers Group after a strong recovery from the pandemic. The group has recently taken stakes in Hugo Boss, and in the online retailers Asos and N Brown, which have both suffered heavy share price declines.
Frasers has been contacted for comment.
