Frasers Group is weighing up a bid to take a 50% stake in Manchester’s iconic Arndale centre shopping centre, Retail Week understands.
The fashion giant, whose businesses include department stores, Sports Direct and luxury brand Flannels, is now in prime position to snap up a stake in the shopping centre, after institutional landlord Landsec baulked at the reported £235m fee.
The 50% stake in Manchester Arndale was put up for sale in May, and is being handled by property agent JLL on behalf of INTU RCF Investors.
The remaining 50% stake in the shopping centre is owned by real estate firm M&G.
Manchester Arndale is one of north England’s best known shopping centres, covering almost 2 million sq ft, with key tenants such as fashion brand Next, tech giant Apple, sportswear staple JD Sports, health and beauty brand Boots and department store Zara.
A source close to the situation said that the sale of the stake to Frasers could be completed “within the next few weeks”.
Under chief executive Michael Murray and owner Mike Ashley, Frasers has been building up its property portfolio over the last few years.
In 2024, the group snapped up four shopping centres across the UK – Princesshay Shopping Centre in Exeter, Kent’s Fremlin Walk Shopping Centre, and the Olympus Centre retail park in Gloucester’s Quedgeley in October of that year and Doncaster’s Frenchgate shopping centre, which it bought in July.
The retailer also owns the Overgate Centre in Dundee, Yorkshire outlet Junction 32 and The Mall in Luton, all of which it bought in 2023.
The brand also made a bid to buy Sheffield’s Meadowhall shopping centre in early 2024, although it ended up losing out to British Land’s joint venture partner Norges Bank Investment Management.
“Securing properties which serve as the primary retail destination for the community remains a top priority for us. Such acquisitions unlock new growth opportunities for our retail concepts, while revitalising high streets and physical shopping locations up and down the country.
“At Frasers, we strive to re-invent and elevate retail for UK shoppers, bringing the very best brands, environments, and experiences to all our customers across the country,” Murray said of the brand’s retail destination shopping spree in 2024.
Earlier this month, Frasers acquired technology retailer Ebuyer out of administration.
In July, the retailer announced a “substantial” £1.65bn increase in its revolving credit facility, bolstering its existing financing facilities to fuel future growth.
JLL and Frasers Group both declined to comment.
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