Boohoo to expand head office space
Online fashion retailer Boohoo is to expand its head office space in Manchester after buying a property on the city's China Lane for £1.6 million.
The company has agreed to purchase the property from the Jogo Associates Limited Pension Scheme whose beneficiaries include Mahmud Kamani, Boohoo's joint chief executive.
The acquisition price of £1.6 million, which was subject to an independent valuation, will be payable in cash with 10% due on exchange and the balance due on completion which is expected to be by the end of February 2016.
The property is situated close to the company's existing offices and will be used to extend the head office space available to Boohoo as it expands its business and workforce to support its growth ambitions.
Boohoo is intending to secure planning permission for office use of the property. In the event that it is unable to do so, the company has a put option with Kamani which gives it the right to sell the property to him at the original purchase price of £1.6 million.
In a statement Boohoo said: “The directors of Boohoo (with the exception of Mahmud Kamani, who is deemed not to be independent in connection with this transaction) consider, having consulted with Zeus Capital Limited in its capacity as Boohoo's nominated adviser, that the terms of the transaction are reasonable insofar as shareholders are concerned.”