UK fashion retailer, Ted Baker has decided to buy its headquarters in Kings Cross London, known fondly as "The Ugly Brown Building".
Ted Baker paid £55.25 million for the deal, plus £3 million in stamp duty and other costs for the 25,347 sq ft premises. It said that buying the building protected it from future rent hikes and gives the brand room to expand, as it has secured the rights to purchase half of the building next door for £5.1 million, at any time within 15 months.
British Airways is to take the remainder of the neighbouring building.
Renting "The Ugly Brown Building" was costing the company £1.2 million a year. The deal will give Ted Baker "certainty over operating costs", it said.
Chief executive, Ray Kelvin said: "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,
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."
Profits at the retailer have surged over the past year, up 15% to £17.8 million in the last six months. Its group retail sales soared by 20%, buoyed by strong demand from US consumers for stylish British clothes and accessories.
