Fashion retailer Boohoo has sold its office in London, helping the retailer to bolster its balance sheet.
Boohoo disposed of the premises on Great Pulteney Street in Soho for £49.5m in cash to property fund Global Holdings UK Limited.
Boohoo said selling the “non-core and non-strategic asset [will] further strengthen the company’s balance sheet”.
The online retailer said part of the proceeds will be used to pay down, in full, the remainder of its term loan due for repayment in August next year and said: “This will leave the business with a £125m revolving credit facility which is sufficient for its needs going forward.”
Global Holdings specialises in office, hotel and residential investment. Chief executive Josh Lawrence said: “As long-term investors in London’s West End office market, we are pleased to add another great building to our portfolio.
“We will now utilise our in-house design studio and asset management team to ensure 10 Great Pulteney Street continues to provide high-quality workspace for our occupiers.”
The deal came as Boohoo seeks to improve performance under a new chief executive, after a tough period of trading and being heavily criticised by Mike Ashley’s Frasers Group.
Frasers, a top Boohoo shareholder, had sought to install Ashley on the Boohoo board. However, the attempt was rebuffed at a Boohoo shareholder meeting last week.
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