Boohoo Group is deliberating the sale of its Soho office building, initially purchased for £72m in 2021.
- The office, located on Great Pulteney Street, spans 43,963 sq ft.
- The company plans to execute a sale and leaseback arrangement, retaining its presence in the building.
- The building currently supports 400-500 employees from Boohoo’s various brand acquisitions.
- Recent restructuring efforts have influenced current space utilisation and future plans.
Boohoo Group is currently in discussions to potentially sell its significant office space located at 10 Great Pulteney Street, Soho. This move comes as stakeholders reveal ongoing dialogues with prospective purchasers, although the building’s present valuation remains undisclosed. Previously, the property was marketed around £60 million. However, Boohoo Group acquired it for a substantial £72 million in 2021, signifying its strategic value to the company.
The offices are fundamental to Boohoo Group’s operations, housing between 400 and 500 employees involved in product development, marketing, technology, and central support for its London-based brands. Notably, the site includes well-known brands such as Karen Millen, Coast, Oasis, Debenhams, Dorothy Perkins, Burton, and Wallis, acquired by Boohoo between 2019 and 2021. This central location facilitates collaborative efforts across different segments of the business, enhancing operational efficiency.
In line with its strategic vision, Boohoo Group contemplates a sale and leaseback transaction should an agreement be made. This suggests Boohoo’s intention to maintain its operations within the premises while optimising its asset portfolio. Such financial manoeuvres are not uncommon in the industry, particularly for companies seeking to enhance liquidity without disrupting core business activities.
The Soho office’s internal landscape has evolved since its opening in April 2021, which initially accommodated about 600 employees. Forward-looking initiatives were marked by the launch of a 6,000 sq ft group showroom, succeeding the previous, smaller space at Great Portland Street. Additionally, in 2023, a redundancy consultation impacted approximately 100 staff, signifying a strategic restructuring as several brand operations, including Burton and Oasis, were consolidated under Debenhams.
Despite Boohoo’s current silence regarding the potential sale, the firm’s recent financial undertakings include exploring refinancing options and managing its revolving credit facility peaking at £325 million. A segment of this, specifically £75 million, is due in the forthcoming year, amplifying the urgency for strategic financial solutions.
Boohoo Group’s possible office sale reflects its strategic financial management while retaining operational integrity.
