Ted Baker acquires its head office building for £55.25 million
The acquisition will be financed by the addition of a £60 million secured term loan to Ted Baker's existing multi-currency revolving credit facility with The Royal Bank of Scotland and Barclays.
Known as the Ugly Brown Building, Block B at Canal Reach in St Pancras Way spans 78,920 square feet.
Separately, British Airways Property Trustees have agreed to purchase the adjacent Blocks A and C from Leysin Investments.
Ted Baker has entered into an agreement with British Airways Property Trustees which grants the retailer a unilateral option to purchase 50% of Block A for £5.1 million at any time within 15 months from the date of the agreement. The building is currently vacant and measures 25,347 square feet.
The retailer said the acquisition offered the opportunity to take ownership of its existing head office and potentially acquire new additional space for expansion as operations continue to grow.
Completion of the acquisition is expected to take place in January 2016.
Ray Kelvin, Ted Baker founder and chief executive, 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 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."
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