Frasers Group: property investment a “key focus”
Frasers Group has said that property investment remains a “key focus”, as the group reflects on a “break-out” year.
The retail group’s property division, which makes up 1.3% of its total revenue, saw an increase in revenue of 101.4% during the 2024 financial year.
The group said this was largely due to the annualisation of acquisitions it had made the prior year – at The Mall Luton, the Overgate in Dundee, and Coventry Arena – as well as the impact of current year acquisitions such as Junction 32 in Castleford.
The group said its property profit from trading declined by £58.2m, with the equivalent result in the previous year including £95.4m worth of gains from disposals.
Frasers Group said its experience occupying stores, warehouses, and office space has given it a “unique advantage”, unlocking opportunities to acquire property assets at attractive prices.
“By leveraging these acquisitions, we not only fulfil our retail representation requirements but also drive additional footfall, enhance the tenant mix, and ultimately increase the value of our assets. When market conditions are favourable, we maintain the flexibility to sell these assets, capturing the value created and redeploying the proceeds across the group”, the group said in its 2024 financial year final results.
Over the course of the period, which comprised the year ending 28 April, the group completed £91m worth of property acquisitions and completed £12.1m of disposals.
Michael Murray, Frasers Group chief executive, said: “Together, we are building a resilient, profitable growth retail ecosystem that delivers exceptional value for our partners, consumers and shareholders. We have built a lot of momentum this year and are entering the new financial year with many exciting growth opportunities ahead of us, which we will continue to invest in for the long-term benefit of the group.”