Boohoo has successfully sold its London head office to Global Holdings Group for £49.5 million, marking a strategic financial move for the fashion retailer.
- The transaction aims to bolster Boohoo’s financial standing by reducing its term loan debt due in the upcoming year.
- The property, acquired by Boohoo in 2021 for £72 million, spans 43,963 square feet and accommodates significant brand operations.
- Global Holdings Group, the new owner, plans to enhance the premises to retain a thriving workplace environment.
- A previous £60 million deal fell through after an Israeli investor withdrew due to survey concerns.
Boohoo, a prominent name in the fashion industry, has completed the sale of its London head office to Global Holdings Group for an amount totalling £49.5 million. This sale is intended to strategically enhance Boohoo’s financial position by contributing towards the repayment of a £47 million term loan that is scheduled for settlement in August of the following year.
Originally purchased by Boohoo in 2021 at a cost of £72 million, the six-storey office building situated at 10 Great Pulteney Street encompasses 43,963 square feet. It is home to approximately 400 to 500 employees who are involved across various Boohoo brands, including Burton, Coast, Debenhams, Dorothy Perkins, Karen Millen, Oasis, and Wallis. These employees take on roles in product development, marketing, technology, and central support functions.
The Global Holdings Group intends to continue working collaboratively with Boohoo to ensure the office maintains its appeal and functionality, thereby helping to attract and sustain talent. This was confirmed by Josh Lawrence, the UK chief executive of Global Holdings, who expressed confidence in the property’s future under their management.
This change in ownership follows a previously unsuccessful deal in which a £60 million agreement fell apart. An Israeli investor called off negotiations due to concerns raised during a property survey.
The transition of ownership to Global Holdings Group, known for its investments in London’s West End office market, comes with plans to incorporate their in-house design and asset management expertise to maintain the building’s status as a desirable workspace.
The sale represents a strategic step for Boohoo in strengthening its financial outlook while allowing Global Holdings to expand its portfolio.
