Sports Direct has sold the lease for its offices in London’s West End to the University of Westminster for £44m.
The 32,500 sq ft building currently houses Sports Direct staff and a number of firms in which the sportswear giant’s owner Mike Ashley also has a stake, including flash Sales site MySale.
Property agents Michael Elliott and Savills were instructed to seek £38m for the 999-year lease on 120 New Cavendish Street. The university was advised by Hanover Green. The property is now expected to be used by the university as extra teaching space.
Sports Direct has instructed agents to find a “prime London site” which it will redevelop into a 100,000 sq ft combination of a Sports Direct store, a Sports Direct gym and offices.
Chief executive Dave Forsey said: “We are continuing to strengthen our market position and expand our offering and we need more space. We want a superstore which will showcase our unbeatable combination of superior product at brilliant prices: that’s the secret of our success.
“We are delighted by the proceeds of the New Cavendish Street sale, which will be applied to our new London development.”
On Tuesday Sports Direct’s head office in Shirebrook, Derbyshire, was visited by police as part of an investigation into the former ownership of Rangers football club.
The investigation was not directed at Sports Direct or at any of its directors or employees.