Boohoo sells London office for £49.5m as it looks to strengthen balance sheet

Fast fashion giant Boohoo has sold its London office for £49.5m in cash as it looks to strengthen its balance sheet at the end of a turbulent year.

The group’s board had been locked in battle with Frasers Group over the appointment of either Frasers chief Mike Ashley or restructuring expert Mike Lennon to its board. But at a general meeting on Friday, shareholders rejected both appointments, with CEO Dan Finley saying: "Since my appointment, I have hit the ground running, taking immediate and decisive actions to maximise and unlock value for all shareholders."

This morning, Manchester's Boohoo announced that Mr Finley, 42, was being formally appointed to the board. It also announced it had completed the sale of its office in Great Pulteney Street, Soho, for £49.5m in cash to independent property fund Global Holdings UK.

In a statement, Boohoo said: “The action taken to dispose of this non-core and non-strategic asset will further strengthen the company's balance sheet.

“Part of the proceeds will be used to pay down, in full, the remainder of the term loan, which was due for repayment in August 2025. This will leave the business with a £125m revolving credit facility which is sufficient for its needs going forward.”

New owner Global Holdings said the building includes 44,166 sq ft of Grade A office space, and a self-contained five-unit residential block of 2,928 sq ft. It was built in the 1960s and has been home to companies including Microsoft and Nokia, as well as Boohoo.

The building will now be managed by Global Holdings Management Group. It said: “ The team will work closely with Boohoo to ensure the workspace continues to provide the amenities and wellbeing credentials to help them attract and retain talent.”

Josh Lawrence, chief executive of Global Holdings Management Group UK, said: “As long-term investors in London’s West End office market, we are pleased to add another great building to our portfolio. 10 Great Pulteney Street, as well as the recent purchase of the Frith + Bateman building, allows us to capitalise on the demand we are seeing from occupiers keen to relocate to such a well-connected and fun place to work.

“We will now utilise our in-house design studio and asset management team to ensure 10 Great Pulteney Street continues to provide high-quality workspace for our occupiers.”