Sports Direct buys freehold to Frasers in Glasgow
Mike Ashley’s Sports Direct International, via its subsidiary SDI (Propco 66), has acquired the freehold to the site of House of Fraser’s original store in Glasgow for £95m.
Sold by Glasgow City Council as administering authority for the Strathclyde Pension Fund, Sports Direct said it intended to continue to operate the 350,000 sq ft listed property, known as Frasers, and would invest in it to enhance the store.
DTZ Investors managed the asset on behalf of Strathclyde Pension Fund. The deal reflected a 4.2% yield.
Mike Ashley’s Sports Direct International, via its subsidiary SDI (Propco 66), has acquired the freehold to the site of House of Fraser’s original store in Glasgow for £95m.
Sold by Glasgow City Council as administering authority for the Strathclyde Pension Fund, Sports Direct said it intended to continue to operate the 350,000 sq ft listed property, known as Frasers, and would invest in it to enhance the store.
DTZ Investors managed the asset on behalf of Strathclyde Pension Fund. The deal reflected a 4.2% yield.
Tony Brothwell, fund manager at DTZ Investors, said: “The sale represents a good outcome for the employees of the store, the fund’s beneficiaries, Sports Direct’s shareholders and for retailing in Glasgow.”
Completion of the deal is expected in January 2020 and it will be funded from the group’s cash resources.
It follows the news last month that House of Fraser was to shut three stores in Edinburgh, Hull and Swindon after Ashley failed to agree terms with landlords.
Ashley, who bought the troubled chain out of administration in August, blamed “greedy” landlords for the slated closures.
Before administration 31 stores of the 59 House of Fraser operated across the UK and Ireland had been due to close under a company voluntary arrangement with lenders.
Commenting on the Glasgow purchase, Michael Murray, head of elevation at SDI, said: “Acquiring the freehold enables us to elevate and invest in the store in order to partner with a broad range of luxury brands in future.”
Glasgow City Council leader Susan Aitken added: “A major investment on this kind of scale is a clear vote of confidence in Glasgow; and credit must also go to hundreds of Fraser’s staff, who are absolutely integral to the business’ success and its enduring popularity with city shoppers.
“With the future of this iconic retailer’s Glasgow presence secured, we look forward to the new owners building on its cherished relationship with shoppers and reputation as a valued city employer for almost 170 years.”
CBRE represented House of Fraser; DTZ Investors was represented by Savills.
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