Frasers Group to sell 16 assets in potential 320 million pound deal
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Mike Ashley’s Frasers Group has reportedly put up for sale an expansive out-of-town retail property portfolio, with a deal that could total around 320 million pounds.
It would see 16 assets sold from the sportswear retailers accumulation of retail parks, shopping parades and standalone stores.
The deal includes retail parks in Wigan, Cheshunt, Aberdeen, Thurrock and Cheetham Hill, according to a report by The Times. At the price quotes, the yield would be around seven percent.
Raise in investor demand for retail parks
Ashley’s retail chains include the likes of Sports Direct and Flannels, which make up a quarter of the income across the group’s portfolio.
The deal looks to cash in on current investor demand for retail parks, which are considered to be lower risk than high streets in consideration of e-commerce evolution.
Retail parks are often used by larger stores as distribution centres and click-and-collect hubs, which offers a valuable opportunity for the location.
It has been reported that M7 Real Estate has been named as a possible buyer.