Boohoo expands Manchester HQ with £1.6m property acquisiton

Online clothing retailer Boohoo.com has agreed to acquire a property on China Lane in Manchester for £1.6m that will be used to extend the company’s head office space.

The property is being bought from Jogo Associated Limited Pension Scheme, of which joint chief executive officer Mahmud Kamani is a beneficiary.

The £1.6m is payable in cash, with 10% due on exchange and the balance on completion, which is expected by the end of the month.

Boohoo said it intends to get planning permission for office use of the property but should that fail, it has a put option with Kamani which gives it the right to sell the property to him at the original purchase price.

“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 Limited in its capacity as boohoo's nominated adviser, that the terms of the transaction are reasonable insofar as shareholders are concerned.”

At 1057 GMT, Boohoo shares were up 3.2% to 40.25p.