- Danielle Wightman-Stone |
Online fashion retailer Boohoo.com is set to extend its head office, after agreeing to acquire a property on China Lane in Manchester for 1.6 million pounds.
The property, located close to the retailer's headquarters at Dale Street, Manchester, is being sold by Jogo Associates Limited Pension Scheme, of which Mahmud Kamani, boohoo’s Joint chief executive officer, is a beneficiary.
The acquisition price of 1.6 million pounds is subject to an independent valuation and is payable in cash with 10 percent due on exchange and the balance due on completion, which is expected to be by the end of February 2016.
The property will be used to extend the head office space available to the online retailer, and support its growth ambitions.
If Boohoo.com is unable to secure planning permission for office use of the property, it has a put an option with Mahmud Kamani which gives the Company the right to sell the property to him at the original purchase price of 1.6 million pounds.
In a statement, Boohoo said: “The directors of Boohoo (with the exception of Mahmud Kamani, who is deemed not to be independent in connection with this transaction) consider, having consulted with Zeus Capital in its capacity as Boohoo’s nominated adviser, that the terms of the transaction are reasonable insofar as shareholders are concerned.”