Ted Baker is to acquire its distinctive head office building, securing a base for continued expansion.
The quirky fashion specialist has agreed to buy the freehold of The Ugly Brown Building, its 78,920 sq ft premises in Camden, north London, for £55.3m and costs of £3m.
Ted Baker has also arranged a “unilateral option” to purchase 50% of a neighbouring 25,347 sq ft property, which is at present vacant, for £5.1m at any time within 15 months from the date of the agreement.
Ted Baker founder and chief executive Ray Kelvin said: “The Ugly Brown Building has become an iconic building in a rapidly developing central London location and a very important ingredient of Ted Baker’s history and unique personality.
“We are delighted to have secured our future in this excellent location as Ted Baker continues to develop as a global lifestyle brand.
“We are confident that this will help us preserve our culture and to continue to attract and retain great talent. This is great news for our business, our brand, and our people.”
The retailer said: “The acquisition and option are highly attractive to Ted Baker as they offer an excellent opportunity to take ownership of its existing head office and potentially acquire new additional space for expansion as the company’s operations continue to grow.
“The net annual rent on the Ugly Brown Building is £1,173,500, so this opportunity provides certainty over operating costs and removes exposure to rising rent reviews.”
The property deal has been done through Big Lobster Limited, a wholly owned subsidiary of Ted Baker.
It will be financed by the addition of a £60m secured-term loan to the company’s existing multi-currency revolving credit facility with Royal Bank of Scotland and Barclays.
The transaction is expected to complete in January 2016.