Frasers Group, the retail owner of brands including Sports Direct and Flannels, has completed the acquisition of Swindon Designer Outlet in a major transaction revealed by CoStar News in October.
The group said the acquisition – which is understood to have closed for around £144.5 million and a yield in excess of 9%, which tops a massive year of investment in retail bricks and mortar by the group – marked a "meaningful step towards achieving the group’s vision of building the planet’s most admired and compelling brand ecosystem".
It added that through acquisitions of strategic physical retail locations like Swindon, it supports key brand partners’ outlet strategies – including Nike, Adidas and Boss – and aims to serve consumers across the UK with the best value and product offerings.
Swindon Designer Outlet, which opened in 1997, totals 250,000 square feet and attracts more than 3 million visitors annually. The announcement comes a month after the group’s strategic acquisition of Braehead Shopping Centre, also revealed by CoStar News, for £220 million as the group busily expands its property portfolio.
Michael Murray, chief executive of Frasers Group, said in a statement: “Physical retail is central to our Elevation Strategy and investing in Swindon – one of the UK’s top five outlets by footfall – strengthens our position as both retailer and landlord. This acquisition reinforces our property strategy and unlocks new opportunities for our brands and our partners.”
Frasers Group was advised by James Keany, executive director, head of national agency at CBRE.
Frasers Group started as a small store in Maidenhead in 1982. As the business evolved, 2019 saw the rebrand of retail tycoon Mike Ashley's Sports Direct International to Frasers Group.
Two outlet centres, Cheshire Oaks Designer Outlet and Swindon Designer Outlet, were bought by LaSalle Investment Management in 2022 and are managed by McArthurGlen. They are ranked number one and number five respectively based on footfall and sales performance in the UK.
LaSalle completed the purchase of the centres from Nuveen in a deal first tipped by CoStar News. The investment at a yield of around 6% was made through LaSalle’s value-add investments business line.
Canadian investment manager giant Brookfield refinanced the two centres for £450 million in its largest European property loan transaction in September, and that prompted bids.
Swindon Designer Outlet has 100 stores, with Tommy Hilfiger, Calvin Klein and Lacoste among the occupiers.
Frasers has been one of the most active investors in UK real estate in recent years. In October, it completed the acquisition of two shopping centres and a retail park comprising more than a million square feet – Princesshay Shopping Centre in Exeter, Fremlin Walk Shopping Centre in Maidstone and The Olympus Centre in Gloucester.
Last month it bought the 1.1-million-square-foot Braehead Shopping Centre near Glasgow from SGS UK Retail for an undisclosed figure believed to be around £220 million. CoStar News revealed the talks in September.
[This story has been updated to provide the correct price paid for the outlet centre.]