- Vivian Hendriksz |
British high street label Ted Baker has announced the acquisition of the ‘Ugly Brown Building’ through Big Lobster Limited, a completely owned subsidiary of Ted Baker. Currently used a Ted Baker’s head office, the building spans 78,920 square feet and is located at Canal Reach, St Pancras Way.
Ted Baker has agreed to purchase the freehold building for 55.25 million pounds via Leysin Investments Limited, plus costs of 3 million pounds which include stamp duty and relevant cost associated with purchase. The acquisition is set to be financed by an additional secured loan of 60 million pounds to Ted Baker’s existing multi-currency revolving credit facility with the Royal Bank of Scotland and Barclays. The deal is expected to be completed January, 2016.
"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,” commented, Ray Kelvin CBE, Founder and Chief Executive at Ted Baker. “We are delighted to have secured our future in this excellent location as Ted Baker continues to develop as a global lifestyle brand. 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.”
At the same time Ted Baker has entered into an agreement with BAPTL, which allows the company a unilateral option to purchase 50 percent of Block A, a 25,347 square foot building which is currently vacant for 5,1 million pounds within 15 months from the date of the agreement. The board believes the acquisition and option are very attractive to Ted Baker as they offer the chance to take ownership of its current head office and potentially acquire new additional space for expansion.