Lancashire investor buys Preston’s St George’s mall in £1bn retail push

Lancashire-based company Adhan Group has bought Preston’s St George’s Shopping Centre out of administration, amid plans to amass a £1bn portfolio of retail properties by 2023. The 270,000 sq ft centre, bought for an undisclosed sum, was previously owned by IRAF UK Dragon. It fell into administration earlier this year. The mall previously sold for £73m in 2015 and £87m in 2010. Adhan Group’s retail arm seeks to invest “significantly” in the centre to attract more new tenants and “ensure existing retailers continue to trade well” as the market recovers from pandemic disruption. The new owner is already in negotiations with several companies that have expressed an interest to expand or relocate to the centre within the next few months, joining existing tenants including H&M, River Island, Marks & Spencer, Superdrug, Foot Asylum and Matalan. The group’s retail division, based on Hardman Square in Spinningfields, was set up in 2020 to expand the company through shopping centre, retail park and other sizeable retail acquisitions. Salim Patel, chief executive of Adhan Group, said contracts were exchanged within a 48-hour period. “We identified [the centre] as an important strategic acquisition earlier in the year,” said Patel. “It’s a very strong retail offering in a city that is undergoing a significant programme of re-development and investment with the city council investing heavily in the Harris Quarter, Stoneygate and Friargate. We envisage the centre cementing its position in the heart of Preston for many years to come.” Alongside its retail arm, Adhan Group also has an industrial portfolio measuring more than 10m sq ft across England and Wales. The company was founded by Salim Patel and his family in 2003. Knight Frank acted for the vendors, while Savills advised Adhan Group. To send feedback, e-mail pui-guan.man@eg.co.uk or tweet @PuiGuanM or @EGPropertyNews Photo: Adhan Group