23rd Jul 2021 09:32
(Alliance News) - Ted Baker PLC on Friday said it has secured "beautiful" new headquarters in the Fitzrovia area of London on a 10-year lease.
The fashion retailer calls its new HQ at 87-125 Cleveland Street the 'Gorgeous Brown Building', moving from its current premises, which it calls the 'Ugly Brown Building'. The company said the new offices in the 1010 on Cleveland development are a fitting home for its lifestyle brand, with its distinctive flatiron shape and "epic" ceiling heights. The building offers 30,000 square feet of space.
Ted Baker expects to move during Summer 2022. The financials also are more attractive, it said. Annual rent will be GBP900,000 in 'GBB' compared to the GBP3.25 million in 'UBB'.
As part of restructuring plan that was launched in June 2020, Ted Baker completed the sale and leaseback of its current offices, for GBP78.8 million, alongside a short-term leaseback until 31 March 2023.
Under the sale and leaseback agreement on the old building last year with BA Pension Fund, Ted Baker negotiated an GBP8 million cash payment to use for the fitout of a new HQ. The company will use this GBP8 million to ensure no net additional capital expenditure is spent on the new offices, it said.
The total annual rent bill of GBP900,000 will be funded by the group's existing resources.
"It will enable us to work more efficiently and collaboratively, and most importantly to express our unique brand personality. We look forward to making our team members comfortable and hosting our global partners in our new showrooms from Summer 2022," said Chief Executive Rachel Osborne.
Shares in Ted Baker were up 1.9% at 140.25 pence each in London on Friday morning.
By Amrit Sahota; [email protected]
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