Frasers Group explores potential 500 million pound Metrocentre acquisition

Frasers Group is believed to be mulling a bid for the Metrocentre in Gateshead, according to Sky News, in a deal that would further expand the retailer's growing portfolio of shopping centres and retail parks.

The shopping complex was put up for sale last month, with agents at Knight Frank overseeing the process. Initial bids are expected in July, with the media outlet suggesting the centre could fetch around 500 million pounds.

The acquisition would represent Frasers' largest retail property transaction to date, if successful. The Sports Direct owner declined Sky News' request to comment.

The potential deal reflects the group's increased focus on retail real estate under chief executive officer Michael Murray. In its latest results, Frasers said it had continued investing in shopping centres and retail parks at "attractive yields to satisfy our occupational demand", pointing to sites in Greenock and Almondvale, as well as the 217.6 million pound purchase of Braehead retail park near Glasgow.

The Metrocentre, meanwhile, was previously part of Intu before the property group's collapse into administration in 2020.

When launching the sales process, a spokesperson for the shopping centre told media outlet CoStar last month that its "sustained strong performance, combined with increased interest from investors in the attractions of such major retail and leisure destinations, has led Metrocentre to move forward with a sale process to support the next phase of its development".

The spokesperson added that a 60 million pound investment programme since 2020 had helped drive footfall back to 16 million visitors for the first time since the pandemic.