Sports Direct has acquired the freehold to a property on the corner of 161-167 Oxford Street and 36 Poland Street in central London, part of which it will develop into a flagship for its premium multibrand retailer Flannels.
It bought the premises from CIP Property, a nominee of Aviva Investors, for £108m. The acquisition, which is due to complete by the end of this month, will be funded from a combination of its existing resources and the group’s bank facility.
The rest of the building will be used to house Sports Direct’s London office, replacing its former offices at New Cavendish Street, which were sold last May for £44m.
Flannels, which has nine stores in the UK and a transactional website, moved to a new headquarters just off Oxford Street last year. Drapers revealed the plans to open a central London flagship for the retailer last October.
“It’s a short walk to Tottenham Court Road and the new Crossrail station so it’s a very important strategic fit for the business going forward,” said a spokesman for Sports Direct.