Frasers Group, led by its ambitious CEO Mike Ashley, is reportedly contemplating the acquisition of Meadowhall, one of the largest super-malls in the UK. The retail property, located in Sheffield, is currently up for sale by British Land and Norges Bank, with an asking price of around £750 million.
Although Frasers Group has shown interest in purchasing Meadowhall, there is no guarantee that the deal will happen. The company is well-known for seeking out assets at discounted prices, making it uncertain if they will meet the current asking price. However, if Frasers Group does proceed with the acquisition, it would be their biggest investment in retail property to date.
Meadowhall boasts impressive features, making it an attractive prospect for potential buyers. As the fifth largest mall in the UK, it spans a vast 1.4 million square feet and is home to 290 stores. With approximately 24 million visitors every year, it remains a popular shopping destination for consumers.
If Frasers Group successfully acquires Meadowhall, it would significantly surpass the price tags of their previous property purchases. In the past, the company spent £58 million on The Mall in Luton, £30 million on Dundee’s Overgate Centre, and £50 million on Junction 32 in Castleford. These acquisitions illustrate Frasers Group’s strong faith in physical retail, as they continue to open brick-and-mortar stores for their various brands.
The potential purchase of Meadowhall aligns with Frasers Group’s objective of building a larger retail empire. Under Mike Ashley’s leadership, the company has ventured into shopping center ownership and shows no signs of slowing down. While the outcome of this particular deal remains uncertain, it is evident that Frasers Group is eager to make strategic investments in the retail industry.
Useful links:
1. British Land
2. Norges Bank
