Controversial businessman Mike Ashley’s retail firm Frasers Group has completed the acquisition of the Overgate Shopping Centre in Dundee.
The purchase from Legal & General follows months of negotiation on the price, which has not been disclosed, but is understood to be for around £30 million.
The empty Debenhams retail space is now expected to host some of the Frasers brands.
Frasers also owns Sports Direct, Game, Flannels, Jack Wills, USC, Lillywhites and Evans Cycles.
The firm confirmed the acquisition of prime Dundee retail will “provide multiple opportunities for the group’s elevated store concepts”.
As well as Fraser Group brands coming into the centre, there is speculation that future plans could include a new cinema.
Growth plans for Dundee
Malcolm Angus, centre manager of Overgate, hailed the deal.
He said: “The retailing diversity and opportunity this brings will ensure Overgate remains an attractive regional shopping centre for both our local and drive time customers.”
Frasers Group said it would seek to work with Dundee City Council to support its growth plans.
James France, Frasers Group head of real estate, said: “The acquisitions of Overgate Shopping Centre and The Mall in Luton, bolster our commitment to the long-term future of physical retail.
“They further demonstrate our commitment to injecting new life into key shopping destinations across the UK and Europe.”
Legal and General acquired the Overgate Shopping Centre from Land Securities in 2014 for £125.3 million.
Frasers will work with specialist real estate asset manager Sovereign Centros to manage the Overgate.
Who is Mike Ashley?
Mr Ashley, 58, is best known for founding Sports Direct chain of retail shops, which made him a billionaire.
He purchased Newcastle United Football Club in 2007, eventually selling the club in October 2021.
In recent years he has acquired several retail brands, including buying House of Fraser from administration in 2018.
His company now goes under the name Frasers Group. Mr Ashley stepped back from running Frasers last May, when he installed his son-in-law Michael Murray as chief executive. He left the board in October.
But he continues to control more than two-thirds of the shares in the business which is listed on the stock exchange and valued at almost £3.5 billion.
The Dundee shopping centre measures 420,000 sq ft and has more than 60 retail units. It also has a 700-space car park.
The Overgate recently said several shops had renewed leases and festive footfall was strong.
The centre has recently had a blow with Paperchase announcing it will close next week.
Councillor Mark Flynn, city development convener, said: “The purchase of Overgate will create positive spin-offs across Dundee city centre and will help accelerate the recovery as we emerge from the pandemic.
“It will strengthen Dundee’s role as a regional retail centre and will attract more shoppers into the city.
“This will boost spending and also assist in our efforts to promote Dundee and bring in extra investment.”
Conversation