Frasers Group mulls stake in key Exeter shopping centre

Frasers Group’s keen interest in acquiring shopping centres could mean it taking on a big chunk of a key mall in Exeter.

The group is looking to buy a half-share in Devon’s Princesshay estate, which includes the central Exeter shopping centre of the same name, according to The Times. The asking price is believed to be around £40 million.

If successful, it would be the first joint venture between Frasers and Princesshay’s owner, The Crown Estate.

According to the report, Frasers Group “is the frontrunner” to buy a 50% interest in the estate from Nuveen, a retail property source said.

Nuveen, which bought its stake from Land Securities a decade ago, put its share up for sale this year.

Princesshay Estate spans 630,000 sq ft and includes the 400,000 sq ft shopping centre, which features over 60 stores including  array of major retailers includes Zara, Next, Reiss, Hollister, Superdry, Moss, Oliver Bonas and Russell & Bromley.

The estate, which is understood to produce a total gross income of over £9 million a year, is operated by The Crown Estate as asset manager. One property source told the newspaper that a Frasers deal would mark the first time the group has taken a passive interest in an asset, “probably with the hope of renegotiating it”.

Last year, Frasers bought The Mall shopping centre in Luton from Capital & Regional for £58 million and the Overgate Centre in Dundee for £30 million. It also bought Junction 32, the Leeds outlet shopping centre, for £50 million from Land Securities and, more recently, had considered a bid for the massive Meadowhall mall in Sheffield.