Fri, 03 Jul 2020 | COMMERCIAL PROPERTY
High street fashion retailer Next Plc has confirmed the successful sale and leaseback of its head office in Enderby, Leicestershire. Details of the transaction were not provided, but a trading statement filed in April said that the company was in the advanced stages of a deal for the HQ worth £48 million.
It is believed that the sale and leaseback of some of Next’s warehouses has generated a further £107 million.
Next engaged property agent Savills to find a buyer for its head office and tasked Acre with selling three Doncaster warehouses in April, as we reported here. The sale-and-leasebacks formed part of a mitigation strategy as the retailer looked to raise funds and lessen the impact of coronavirus on its balance sheet.
At the time, the company said it could raise up to £100 million from its properties to offset the closure of its stores due to the COVID-19 pandemic. The virus crisis forced the company to slash investment plans by £45 million and suspend its share buyback scheme.
In March, Next forecast three scenarios in which sales could be down by up to £1 billion in 2021, with annual profits potentially falling from £594 million in the year to January 2020, to £55 million a year later. In April it revised potential lost revenue to between £1.2 billion and £1.6 billion.
Despite the reopening of shops, Next still expects to see sales drop by 40 per cent over the year.
In a statement, a Next spokesperson said: “The sale and leaseback of the Enderby HQ has now been completed. No details of the sale and leaseback of the HQ have been made public. All I can say is that (COVID apart) there are no operational changes to the HQ set up over what went before – and staff won’t know any different.”
Next is one of several companies to have turned to sale-and-leasebacks in order to bolster cashflow during the pandemic. Topps Tiles completed the £18.1 million sale-and-leaseback of its head office in Leicester and central warehouse buildings to UK Warehouse Properties Ltd in June. Ted Baker also recently completed a sale-and-leaseback of its London HQ to a wholly-owned subsidiary of British Airways Pension Trustees Limited in a deal worth £78.75 million.
One of the best ways to find properties below market price is to look at recent administrations.
A small team of three of us focus on sales, purchasing, and administrative tasks. The business could easily be integrated within an existing team to support higher profits.
RELOCATABLE
Specialises in sales of rare, vintage and celebrity-owned instruments, including acoustic, electric and bass guitars, as well as amplifiers, effects pedals and accessories.
LEASEHOLD
Offers an extensive range of sports, prestige and exotic vehicles to customers and clients throughout the UK. Utilises a highly experienced team to provide vehicle servicing, valeting and detailing, delivering cars on time, within budget and with a h...
LEASEHOLD
|
09
|
|
Apr
|
Topshop flagship store up for sale | COMMERCIAL PROPERTY
Topshop's flagship Oxford Street store in London is dra...
|
09
|
|
Apr
|
Gestamp’s former Washington warehouse hits the market in £6.5m auction | COMMERCIAL PROPERTY
The former Washington base of international car parts manufa...
|
08
|
|
Apr
|
Decorating contractor targets acquisitions after MBO | MBO/MBI
Scottish commercial decorating contractor Bell Group has com...
Sign up to receive our acquisition alert emails to get your FREE guide
|
11
|
|
Mar
|
Next buys £200m stake in high street fashion rival | BUSINESS SALE
Next Plc has announced that it has purchased a 25 per cent s...
|
15
|
|
Sep
|
Next agrees joint venture with Victoria’s Secret | BUSINESS SALE
Fashion retailer Next has agreed a joint venture deal for th...
|
02
|
|
Apr
|
Next puts headquarters and three warehouses up for sale | COMMERCIAL PROPERTY
Fashion retailer Next has put its head office and three ware...
Business Sale Report is your complete solution to finding great acquisition opportunities.
Join today to receive:
All this and much more, including the latest M&A news and exclusive resources