Boohoo sells London office for £49.5m to pay off debts

Boohoo has sold off its London head office for £49.5 million to help pay down its debts.

The online fashion firm told shareholders on Monday it has sold the site, on Great Pulteney Street in Soho, to property fund Global Holdings UK.

It comes three years after Boohoo bought the office building for £72 million.

But the company put the site up for sale this summer after a downturn in sales and growing losses.

Boohoo said the move to sell the “non-core and non-strategic asset” will help strengthen its balance sheet.

The proceeds of the deal will be used to pay down the remainder of a loan which had needed repaying by August 2025.

The retail firm said it will still have a £125 million credit facility to support its future operations.

Global Holdings said the site includes five floors of Grade A office space and five residential units.

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.”

The deal comes after Boohoo was embroiled in a boardroom battle with major shareholder Frasers Group.

On Friday, Boohoo rejected efforts by Frasers Group founder Mike Ashley to get himself appointed to the online fashion firm’s board.

Frasers Group, which owns a 27% stake in Boohoo, had urged investors to appoint Mr Ashley and restructuring expert Mike Lennon to Boohoo’s board.

But at a meeting in Manchester, a majority of Boohoo shareholders voted against motions to appoint the pair as directors.

On Monday, Frasers said it “respects” the view of shareholders and pointed towards a proposition by Boohoo ahead of the vote that Frasers can put forward a candidate for its board, who is not Mr Ashley or Mr Lennon.

“We will put forward a highly qualified candidate in due course and fully expect Boohoo’s board to uphold their commitment without hesitation or delay,” the retail group said.