Billionaire Mike Ashley’s retail conglomerate has acquired two discount shopping centers to expand its real estate portfolio. Frasers Group revealed the purchase of the York Designer Outlet and the East Midlands Designer Outlet, popular destinations attracting nearly 7.8 million visitors annually.
While the exact value of the transaction remains undisclosed, speculation suggests it could be in the vicinity of £400 million. Frasers Group, known for its ownership of various retail brands like Sports Direct and House of Fraser, has been steadily increasing its presence in shopping center acquisitions nationwide.
Michael Murray, the son-in-law of tycoon Mr. Ashley and CEO of Frasers Group, expressed their ambition to further grow their share in the UK outlet market, now owning over one-fifth of it. This recent deal follows Frasers’ acquisition of the Swindon Designer Outlet last December, which boasts a significant number of visitors each year.
In addition to these purchases, Frasers Group has also invested in several other shopping centers across the UK. Their annual report emphasizes the strategic importance of property investments in revitalizing high streets and retail hubs.
The York Designer Outlet, spanning 250,000 square feet, houses 120 retailers and welcomes 4.3 million visitors annually. On the other hand, the East Midlands Designer Outlet, covering 170,000 square feet and featuring over 65 designer brands, attracts 3.5 million visitors each year.
Mr. Murray highlighted that these acquisitions align with their vision of forming strong partnerships with global brands to drive mutual growth and support outlet strategies. Mike Ashley, the bold entrepreneur behind Frasers Group, initiated his retail journey over three decades ago and has since built a retail empire with a significant market value, numerous stores, and a vast workforce operating globally.