- Basingstoke head office and and warehouses being sold for £13.5m
- Sale and leaseback deal will mean Game secures exceptional gain of £6.2m
- Annual rent will be £1.06m with 12-year break clause
Game is set to gain some “much needed” cash after striking a sale and leaseback deal on its head office and distribution centre.
The video games specialist, which revealed last month it expected to post a slump in full-year sales, has sold its Basingstoke head office and warehouses to property firm Portsmouth Estates Developments.
Game will receive a total cash consideration of £13.5m for the sites.
The retailer, which floated in 2014, has struggled of late. It reported a 32% slide in half-year profits in April and issued two profit warnings last year.
The properties are held on the group’s balance sheet at £7m and the sale will give the retailer an exceptional gain of £6.2m, it said.
It will pay an annual rent of £1.06m on the buildings.
“The proceeds of the sale will be retained in the group and be used to reinvest in the business,” the retailer said in a statement.
Independent analyst Nick Bubb said: “In the short term the sale and leaseback raises much needed cash ahead of the key ‘stocking up for Christmas’ phase in Game’s working capital cycle.”
Game will report full-year figures on October 13.