GAME announces sale and leaseback of UK head office and distribution facility
GAME Digital has exchanged contracts with Portsmouth Estates Developments for the sale of the freehold property interests of its distribution centre and head office buildings in Basingstoke and the immediate leaseback of both premises.
The group will continue to operate its principal UK business activities from its Basingstoke head office and continue to use its distribution centre as its primary UK store and online storage and fulfilment centre.
The new lease for the distribution centre and head office property is for an initial 17 year term with a tenant only break clause after 12 years and an annual rent on commencement of £1.06 million.
Completion is scheduled for 7 October 2016 with Portsmouth Estates Developments paying GAME £13.5 million. The properties are held on GAME’s balance sheet at £7 million and the sale will give rise to an exceptional gain for the group of £6.2 million after transaction costs of £0.3 million in the financial year ending 29 July 2017.
GAME will use the proceeds of the sale to re-invest in the business.
