Frasers Group sells retail parks for £205 million
Frasers Group has today announced that it has completed the disposal of a number of freehold and long leasehold retail parks for a headline price of £205m.
The retail parks, held previously by its wholly owned subsidiaries, have been sold to RI UK 1 Limited.
In February, Frasers Group listed 16 out-of-town retail parks for sale with an asking price of £320 million. Founder Mike Ashley accumulated the large retail portfolio through Fraser Group's retail chains Sports Direct, House of Fraser and Flannels.
A renewed interest in retail parks, which are perceived to be a more secure investment compared the high street, led Ashley to consider selling some of the group's out-of-town assets. The £320 million asking price for the property portfolio represented a 7% yield, with property agents at CBRE handling the process.
Frasers Group confirmed it intends to use the proceeds of sale towards the working capital of the company and its group operations.
The retail giant, which owns Sports Direct, Flannels, House of Fraser and Jack Wills, saw adjusted pre-tax profits jump to £344.8 million for the year to April 2022, compared with a £39.9 million loss in the previous year.
The company later lifted its targets for the current financial year, telling shareholders that it expects to post an adjusted pre-tax profit of between £450 million and £500 million over the current financial year.
