Sports Direct is to acquire 32 properties for £86.8m, subject to shareholder approval.
The sports retailer said the portfolio of freehold and long leasehold properties would be purchased from Sports Direct’s executive deputy chairman and shareholder Michael Ashley.
Typically the group has traded from leasehold properties in the UK, and most of its landlords are independent third party institutions. However subsidiary Sportsdirect.com Retail, trades from 32 premises where, directly or indirectly, the freehold or long leasehold interest is owned by Ashley.
The company said: “The acquisition of the properties will provide the group with greater security, by ensuring the availability of the premises for trading, greater flexibility over the management of its property interests, and will provide the group with a long-term solution to its property arrangements.”
The proposed acquisition will be financed through the utilisation of the company’s existing cash resources and banking facilities. If shareholders approve the deal, its completion is expected to take place on 1 March 2012.
CB Richard Ellis advised on the valuation of the properties.
joanna.bourke@estatesgazette.com
