Online fashion firm acquires another city centre building
ONLINE fashion retailer boohoo is expanding with the acquisition of a property in the Northern Quarter of its home city of Manchester.
The company’s subsidiary boohoo.com UK has bought the building on China Lane – near to the company’s Dale Street head office – for £1.6m from Jogo Associates Pension Scheme, whose beneficiaries include Mahmud Kamani, boohoo’s joint chief executive.
The price-tag due is subject to an independent valuation, payable in cash with 10% due on exchange exchange and the balance due on completion which is expected to be by the end of this month.
China Lane will be used to extend the head office space available to boohoo as it expands its business and workforce in the local area to support the company’s growth ambitions.
The Company intends to secure planning permission for office use of the property. In the event that it is unable to do so, the boohoo has a put option with Mahmud Kamani which gives the Company the right to sell the property to him at the original purchase price of £1.6m.
The directors of listed boohoo – with the exception of Kamani, who is deemed not to be independent in connection with this transaction – say, having consulted with Zeus Capital in its capacity as boohoo’s nominated adviser, that the terms of the transaction are reasonable.
Boohoo’s move follows last month’s report of a 45% growth in festive period sales, compared to the previous year.