Braehead Shopping Centre has been sold to Mike Ashley’s Frasers Group, adding to its growing portfolio of malls around the UK.
The value of the transaction for the Renfrew-based centre was not disclosed although there were reports that owner SGS UK Retail was looking for £220 million.
Frasers had been named as the likely buyer of the 800,000 sq ft centre which is added to, among others, the Overgate centre in Dundee and Frenchgate centre in Doncaster.
Aside from the eponymous department stores, Frasers owns the Sports Direct, Flannels and Evans Cycles retail chains.
Commenting on the Braehead deal, chief executive Michael Murray said: “This acquisition is an important step in delivering our property ambitions and accelerating the Elevation Strategy.
“It cements the group’s position as a leading operator and champion of physical retail destinations while unlocking greater opportunities to serve communities with the best brands, environments and experiences possible.”
Braehead has an annual footfall of over 15 million visitors, outperforming the Scottish market this year, and has signed a global indoor leisure and recreation concept which opens early next year.
SGS UK Retail owns Lakeside Shopping Centre, Victoria Centre in Nottingham and Harlequin Watford.
Claire Barber, chief executive, said: “The sale of Braehead was always part of our strategic plan and through active management we have delivered substantial value enhancement and successfully stabilised the asset, attracting new brands and increasing its relevance and appeal to customers.
“We have created a strong platform from which Frasers Group can continue to drive growth, leveraging its retail expertise to further unlock Braehead’s potential as one of the leading retail destinations in Scotland.”
Retail sales fall
UPDATE 21 NOV: Retail sales unexpectedly fell in October for the first time since May as consumers held back on spending ahead of the Black Friday sales.
According to the Office for National Statistics, sales slid 1.1%, reversing an upwardly-revised 0.7% uplift in September.
Analysts had been looking for flat sales.
Grant Fitzner, chief economist at the Office for National Statistics, said: “Supermarkets, clothing stores and online retailers all saw slower sales, with feedback from some retailers that consumers were waiting for November’s Black Friday deals.”
Asda sale
Asda is selling 24 stores and a major distribution depot for £568 million in a sale-and-leaseback deal as it tackles a £3.8 billion debt mountain.
The supermarket retailer will immediately rent back all the properties under 25-year leases, with options to extend for another 10 years, meaning no changes for shoppers or staff at the affected sites.
Two buyers have acquired the assets. US investment firm Blue Owl Capital has purchased 20 stores and Asda’s depot in Lutterworth, Leicestershire.
London-based DTZ Investors has bought four stores in Small Heath, Birmingham; Colindale, London; Coventry Abbey Park; and Killingbeck, Leeds.
The deal comes as Asda continues to lose ground to rivals, with sales falling 3.9% in the three months to 2 November.
Market share dropped by one percentage point compared to the previous year, despite efforts by chairman Allan Leighton to win back customers with price cuts.
The GMB union, which represents thousands of Asda workers, has sharply criticised the move as “asset stripping” by the private equity-owned chain.
Clive Black from Shore Capital said the deal might help pay off debt but would mean higher rents and less cash for day-to-day operations.
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