Frasers owner makes £50m bid for Leeds shopping centre

Mike Ashley, the owner of Frasers Group, has bid almost £50m to acquire Junction 32 off the M62 near Castleford, on the outskirts of Leeds, in his latest foray into the world of retail property, The Times has reported. 

This comes as the shopping centre is being sold by Landsec, which first acquired the site in 2017 as part of a £333m package deal of three outlet centres from Hermes Investment Management. 

However, since then, the value of retail property has reportedly dropped since retailers have moved more operations online, The Times wrote. 

Junction 32 was put up for sale over the winter as, according to Landsec CEO Mark Allan, the property does not have a “sustainable competitive advantage”. Allan also said last year that there was now 25% too much retail space in the UK. 

Landsec aims to focus on London office spaces, big retail destinations, and mixed-use urban neighbourhoods. 

The 250,000 sq ft outlet shopping centre on the outskirts of Leeds, which has almost 100 stores that includes popular brands such as Nike, Adidas and Barbour, as well as Frasers Group-owned Jack Wills and Sports Direct. 

A Landsec spokesperson told The Times: “We are considering various acquisition and disposal opportunities that make financial and strategic sense to the business.”

While Landsec did not confirm the sale to Ashley, he has been active in retail property of late, having recently snapped up The Mall Shopping Centre in Luton in March for £58m.

Frasers Group maintained that its purchases of shopping centres reflects its “confidence in the future of the UK high street”.