Frasers Group Eyes Maidstone Shopping Centre Acquisition
Frasers Group, the retail giant, is reportedly in advanced negotiations to acquire the Fremlin Walk shopping centre in Maidstone from current owners, M&G Real Estate.
According to reports from *The Times*, the proposed deal would see Frasers Group take ownership of the 350,000 square foot retail space, currently home to a mix of popular brands including FatFace, H&M, JD Sports, Schuh, and Skechers. Notably, the acquisition would include a flagship Frasers Group store, encompassing both Flannels and Sports Direct, scheduled to open later this autumn.
Fremlin Walk has been in M&G's portfolio since 2014, when they acquired it for £110 million from Legal & General Property. However, earlier this month, the centre was put up for sale with a significantly reduced asking price of £25 million. This move suggests a strategic shift by M&G, potentially reflecting the changing landscape of the retail sector.
The potential acquisition of Fremlin Walk marks the latest in a series of strategic acquisitions by Frasers Group. The company has been actively expanding its portfolio in recent years, demonstrating a clear ambition to increase its presence in the UK retail market. In July 2023, the company acquired Thackerays, an independent fashion retailer in Northampton. This acquisition was followed by the purchase of THGâs Coggles in June 2023. In December 2023, Frasers Group further strengthened its position in the luxury fashion sector by acquiring the troubled retailer, Matches, for £52 million.
Last year, Frasers Group also acquired The Mall in Luton for £58 million, adding to its growing portfolio of shopping centres. The group already owns Overgate shopping centre in Dundee and Frenchgate shopping centre in Doncaster. Earlier this year, Frasers Group emerged as the frontrunner to acquire Ted Baker's British operations following the fashion brand's collapse into administration in March. This demonstrates the company's confidence in its ability to manage and revitalise struggling retail properties.
These acquisitions come at a time when Frasers Group is enjoying a period of strong financial performance. In the year ending 28 April 2024, the group reported a 13.1% rise in adjusted profit before tax, reaching £544.8 million. This positive trajectory appears to underpin Frasers Group's aggressive expansion strategy.
Frasers Group has declined to comment on the reported acquisition of Fremlin Walk. However, the deal, if confirmed, would represent a significant move for the company, further solidifying its position as a major player in the UK retail landscape. The impact of this acquisition on the future of Fremlin Walk, as well as the wider retail sector in Maidstone, remains to be seen.
