House of Fraser has acquired the freehold to the Frasers building in Glasgow for £95m safeguarding the future of the store and its 800 staff.
While it carried the Frasers brand, the store on Buchanan Street, is House of Fraser’s Glasgow branch and has historic significance since it is the home town of the business. House of Fraser was founded in Glasgow in 1849 and moved into the Frasers store in the 1950s.
House of Fraser, which is now owned by Mike Ashley’s Sports Direct, said the move to acquire the store (the deal is £5m more than the group paid for the whole House of Fraser chain back in August) will help it achieve its vision of creating a “Harrods of the North”.
Michael Murray, head of elevation at Sports Direct, said: “We are overwhelmed and proud to own such an iconic destination. 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. This is fantastic news for all parties.”
Property firm CBRE has been acting on behalf of House of Fraser since Sports Direct acquired it and has been negotiating new leases on many stores that had been previously slated for closure under the department store’s former owner Nanjing Cenbest, part of Sanpower.
“This is a fantastic deal for Glasgow and Scotland,” said CBRE’s Kevin Sims. “It is an iconic store and much of the success of Buchanan Street over the last 20 years has been built around having Frasers as an important anchor tenant for the street. This fully cements House of Fraser’s intent to create a luxury department store business.”