Sports Direct has acquired a prime property on London’s Oxford Street to bring its fashion business to the capital.

The sports and leisure retailer has purchased the freehold of 161-167 Oxford Street via its subsidiary SDI (Oxford Street) Limited for a fee of £108m.

Sports Direct said the property, which it acquired from CIP Property (AIPT) Limited, would be redeveloped into a 20,000 sq ft Flannels flagship store – its first in London.

In a statement to the Stock Exchange, Sports Direct revealed will also relocate its London office to the property, replacing its former City base at New Cavendish Street, which it sold for £44m last May. The new office space will span 20,000 sq ft. 

Flannels, which already has numerous stores in cities including Manchester, Birmingham, Liverpool and Leeds, specialises in luxury fashion.

Sports Direct acquired a 51% stake in the business back in 2012.

It said completion of the property acquisition would occur by the end of this month, but provided no timetable on when the Flannels store would open.