Ted Baker has bought its own headquarters in London‘s Kings Cross as part of its expansion plans for the new year.
The building, fondly dubbed “The Ugly Brown Building” by the retailer‘s employees, was costing the retailer a steep £1.2m in annual rent. Following recent profit growth, up 15% to £17.8m in the last six months, Ted Baker decided to pay £55.2m for ownership of the building in addition to £3m in stamp duty for 25,347 sq. ft.
A spokesperson for Ted Baker said that the acquisition will provide the upmarket retailer with “certainty over operating costs”.
In addition, the British brand has secured the rights to half of the vacant building next door for £5.1m at any time during the next 15 months. *
As property prices and rent rates in the area continue to grow, Ted Baker‘s decision will protect its future stability.
“The Ugly Brown Building has become an iconic building in a rapidly developing central London location and a very important ingredient of Ted Baker’s history and unique personality,” said Chief Executive Ray Kelvin.
“We are delighted to have secured our future in this excellent location as Ted Baker continues to develop as a global lifestyle brand.
We are confident that this will help us preserve our culture and to continue to attract and retain great talent. This is great news for our business, our brand, and our people.”