Frasers Group, led by Mike Ashley, has purchased the St Nicholas Arcade in Lancaster as part of its ongoing acquisition strategy, underpinning its commitment to physical retail.
- The St Nicholas Arcade, a 160,000 sq ft shopping center housing major retailers, attracts four million visitors annually.
- This acquisition aligns with Frasers Group’s focus on expanding its property portfolio amidst a series of strategic property purchases.
- Frasers has previously acquired shopping centers in Luton, Dundee, and Doncaster, demonstrating its substantial investment in retail properties.
- The company is currently in discussions to purchase additional retail sites, including the Maidstone and Exeter centers, further indicating its growth ambitions.
Frasers Group, under the leadership of Mike Ashley, has recently acquired the St Nicholas Arcade in Lancaster, a significant addition to its rapidly expanding property portfolio. This strategic purchase reflects the company’s unwavering belief in the value of physical retail locations, despite global trends leaning towards digital alternatives.
The St Nicholas Arcade spans 160,000 square feet and is home to a variety of retailers such as Next, Shoe Zone, and Trespass. It draws an impressive four million visitors each year, reinforcing the center’s status as a key retail destination and a valuable asset in Frasers Group’s property lineup.
Frasers Group’s approach to acquisitions is strategic and forward-thinking, as evidenced by its recent purchases of The Mall in Luton for £58 million and the Overgate Shopping Centre in Dundee for approximately £30 million. In July, the Frenchgate Shopping Centre in Doncaster was also added to its growing number of property assets. The company’s aggressive acquisition strategy underscores its commitment to enhancing the value and appeal of brick-and-mortar retail spaces.
In line with its growth trajectory, Frasers Group is actively pursuing further acquisitions. Current discussions include the potential purchase of the Fremlin Walk shopping center in Maidstone from M&G Real Estate for £25 million, which is significantly less than the price paid by M&G in 2014. Additionally, the company is interested in the Princesshay shopping center in Exeter, where a 50% stake was recently put up for sale by US-based asset manager Nuveen.
Chief Executive Michael Murray has articulated Frasers Group’s vision, stating: “At Frasers, we have always been strong believers in physical retail, and this acquisition demonstrates our ongoing commitment to supporting bricks-and-mortar in the UK.” Murray emphasizes the company’s strategy of acquiring key retail sites to unlock growth opportunities and revitalize high streets across the country. By incorporating its own fascias and improving retail offerings, Frasers aims to deliver enhanced shopping experiences while simultaneously bolstering its property segment.
The acquisition of St Nicholas Arcade marks another milestone in Frasers Group’s strategy to strengthen its presence in the retail property market.
