House of Fraser makes £12.3 million on Manchester property

House of Fraser has acquired the freehold of its Manchester store for£45.2 million. The retailer has also closed a deal to sell and lease back the property. The sale price is£60 million.

The 35-year lease will start on December 17 and replaces a long lease that contained rent reviews every 42 years. House of Fraser will make£12.3 million on the deal, which it will use to reduce debt. The saving on interest payable on its debt will exceed the agreed rental increase, according to the retailer.