Mike Ashley’s Frasers Group has bought the 900,000 sq ft The Mall Luton from Capital & Regional for £58m.
Capital & Regional bought the shopping centre in January 2006 and in the intervening years the REIT has invested heavily in upgrading the centre, with the £20m St George’s Square extension opening in 2010.
It put the centre, which is home to retailers such as TK Maxx and Primark, up for sale last year with a rumoured price tag of £81m.
In a statement Capital & Regional said it had previously ‘deconsolidated’ its interest in the centre “meaning the gross assets related to the investment are nil and therefore the transaction does not result in any profit or loss on disposal to the group”. It added that the sale had been undertaken with the consent of the secured lender Wells Fargo on the related loan facility.
Capital & Regional said it had generated fees of £1.4m in 2022 as property and asset manager of the centre, but its involvement at The Mall Luton had now ceased.
James France, head of real estate at Frasers Group, said: “Frasers Group is pleased to have acquired this key retail destination in Luton. We continue to have confidence in the future of the UK high street and remain committed to investing in sites which display huge potential. We look forward to engaging with tenants in the centre to ensure a smooth transition.”
Frasers Group is also rumoured to be in advanced talks to buy the Overgate Centre in Dundee for £30m.
