28th Sep 2016 07:25
LONDON (Alliance News) - GAME Digital PLC on Wednesday said it has sold the freehold property interests of its UK distribution centre and head office buildings in Basingstoke, while agreeing the immediate leaseback of the premises with the buyer Portsmouth Estates Developments Ltd.
The computer game retailer will therefore continue to operates its principal UK business activities from the Basingstoke head office, while continuing to use the distribution centre as its primary UK store and online storage and fulfilment centre.
GAME will receive GBP13.5 million in cash for the sale. The new lease is for an initial 17-year term, with an annual rent on commencement of GBP1.1 million, which will be subject to upward-only rent reviews every five years.
The proceeds of the sale will be retained in the group and used to re-invest in the business.
Shares in GAME were trading up 5.5% at 76.19 pence on Wednesday morning.
By Karolina Kaminska; [email protected] @KarolinaAllNews
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