The Mall Luton sold for £58 million to Mike Ashley's Frasers Group

Frasers Group has purchased The Mall in Luton in a £58 million deal confirmed by the retail giants this afternoon (March 17).

Yesterday evening Capital and Regional PLC sold the central shopping mall to SDI (Luton) Ltd and SDI (Luton 2) Ltd.

Now the international retail group owned by Mike Ashley has confirmed the companies are linked to their larger business.

In January it was reported that the retail group fronted by the former Newcastle United owner was in advanced talks to purchase the centre.

At the time Capital and Regional PLC had set a £70 million asking price for the 900,000 square foot building.

Frasers Group plc announced it was excited to inherit a major store which boasts a prime retail location, and highlighted strong brands already operating at the venue, including Primark, TK Maxx, and H&M.

A spokesman for the group said: “Frasers Group recognise the importance that the centre plays within the community and looks forward to working with Luton Borough Council to stabilise and elevate the scheme. This will ensure it remains a key retail location, delivering a prime, consumer-centric shopping destination for the local community in Luton.”

Frasers Group has the brand rights to some of the best known clothing retailers in the country such as Flannels and USC. A Sports Direct store is already operating at the mall, which also comes under the Fraser Group umbrella.

James France, group head of real estate said: “Frasers Group is pleased to have acquired this key retail destination in Luton. We continue to have confidence in the future of the UK high street and remain committed to investing in sites which display huge potential.

“We look forward to engaging with tenants in the centre to ensure a smooth transition.”

Mr Ashley, who is best known for his unpopular tenure as Newcastle chairman, founded the group in 1982.

Previously, the billionaire businessman faced criticism for the retail empire’s dependance on people hired on zero-hours contracts, which have been slammed by workers’ groups as they do not guarantee regular work.