Billionaire Mike Ashley's Frasers Group has snapped up two discount shopping villages, adding to its burgeoning property empire. The company announced the acquisition of the York Designer Outlet and the East Midlands Designer Outlet, which together attract almost 7.8 million shoppers a year. The value of the deal was not disclosed, but previous reports have speculated it could be around £400 million.
Frasers Group's Growing Property Portfolio
Frasers Group, formerly known as Sports Direct, is better known for owning a host of retailers, from Sports Direct and Flannels to House of Fraser. However, it has been gradually acquiring shopping centres across the country over recent years. Michael Murray, Ashley's son-in-law and chief executive of Frasers Group, declared: "Today, we own over one-fifth of the UK outlet market and have a clear ambition to grow our share further."
The latest deal follows the purchase of the Swindon Designer Outlet in Wiltshire last December. That 250,000 square foot shopping mall has more than 100 stores and attracts over three million visitors annually. In November, Frasers bought the Braehead Shopping Centre in Scotland for a reported £220 million, which features over 100 retailers including Ikea, Primark, and Marks & Spencer, making it one of Scotland's busiest shopping centres.
Other property purchases include the Princesshay Shopping Centre in Exeter, the Fremlin Park Shopping Centre in Maidstone, Kent, and The Olympus Centre in Quedgeley, Gloucester. Frasers also owns the Frenchgate centre in Doncaster, where Murray grew up and where his father is a local property developer.
Strategic Focus on Property
Frasers' annual report states that investing in property "remains a key focus for the group" by "unlocking occupational demand for our retail business whilst delivering strong returns that can be recycled at the appropriate time." It added: "Property is a fundamental pillar of our business" and will "continue to play a pivotal role in reinvigorating UK high streets and retail hubs."
The 250,000 square foot York Designer Outlet, just outside York city centre, is home to 120 retailers from Marks & Spencer and Superdry to Adidas and Boss, attracting 4.3 million visitors annually. The 170,000 square foot East Midlands Designer Outlet, near the M1 motorway, has over 65 designer brands and 3.5 million visitors a year.
Murray said: "These strategic acquisitions reinforce our vision, leveraging strong partnerships with leading global brands to unlock mutual value - supporting their outlet strategies while driving growth."
Brash billionaire Ashley, who still owns most of Frasers Group, opened his first store more than 30 years ago in Maidenhead, Berkshire, at the age of 18 with a £10,000 loan from his parents. Today, the group has a stock market value of almost £3 billion, more than 1,500 UK stores, over 30,000 workers, and operates in more than 30 countries.
