Frasers Group, the FTSE 100 retailer majority-owned by Mike Ashley, is set to add another shopping centre to its expanding property portfolio.

The company is under offer to purchase Fremlin Walk, an outdoor shopping centre in Maidstone, from M&G Real Estate.

The 350,000 sq ft scheme, which opened in 2005, is home to popular retail brands including H&M, Boots, JD Sports, and Pandora. It currently generates an annual gross income of £4.3 million. In a significant development, a multi-brand anchor shop featuring Frasers, Flannels, and Sports Direct is slated to open this autumn.

M&G acquired Fremlin Walk for £110 million from Legal & General Property in November 2014. The property was recently put on the market with an asking price of £25 million, reflecting the challenging climate for retail property in recent years.

This acquisition is part of a broader strategy by Frasers Group to invest in retail property. Last month, the company purchased the Frenchgate shopping centre in Doncaster, following earlier acquisitions including The Mall in Luton for £58 million, the Overgate shopping centre in Dundee for £30 million, and Junction 32, an outlet centre in Castleford, West Yorkshire.

Michael Murray, chief executive of Frasers Group and Mike Ashley's son-in-law, explained the company's vision: "The opportunity for Frasers is to create anchor department stores and shopping centres where Frasers can take a floor which is a lot more productive, say 30,000 to 50,000 square feet, and then we can utilise the other floors for other areas of our business such as Flannels, Sports Direct or the gym business, creating a more productive and meaningful destination for our business."

The group's property buying spree comes at a time when shopping centre values have fallen sharply, influenced by the rise of online shopping and the collapse of major retailers. However, there are indications that the decade-long decline in retail property values may be nearing its end.

Frasers Group's strategy appears to be capitalising on this potential turnaround, as it continues to expand its brick-and-mortar presence. The company is also reportedly in talks with the Crown Estate to take full ownership of the 630,000 sq ft Princesshay shopping centre in Exeter.

As of the time of reporting, Frasers Group has declined to comment on the Fremlin Walk acquisition.

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