RE: Mike's final push6 Aug 2024 18:16
Drapers has learned that Boohoo Group is currently exploring a sale of the 43,963 sq ft Soho office at 10 Great Pulteney Street and discussions with prospective buyers are underway.
One property source said the site was marketed in the region of £60m last year but it is unclear how much it is now listed for.
It is understood that the company will be pursuing a sale and leaseback transaction if a deal is agreed as it plans to remain in the building.
Boohoo Group purchased the office block for £72m in 2021 following a series of acquisitions. The five-storey building houses 400 to 500 employees from the group's London-based brands including Karen Millen, Coast, Oasis, Debenhams, Dorothy Perkins, Burton and Wallis, which it bought between 2019 and 2021, as well as other product, marketing, technology and central support roles across the group.
In September 2023, Debenhams opened a beauty showroom on the ground floor of the site. It will also welcome a new 6,000 sq ft group showroom in the coming months following the closure of its 3,500 sq ft showroom space at 6-10 Great Portland street earlier this year.
When the Soho office first opened in April 2021, it had around 600 employees. In January 2023, the company launched a redundancy consultation with 100 London staff as it moved Burton, Coast, Dorothy Perkins, Karen Millen, Oasis and Wallis under the Debenhams umbrella.
Last week, lenders to Boohoo Group reportedly drafted in advisers from FTI to discuss refinancing options for the business, according to Bloomberg.
Boohoo Group has a £325m unsecured revolving credit facility, of which £75m is due next year and £250m in 2026, its latest annual report showed.
Boohoo Group declined to comment on the potential office sale.