Joules, the premium British lifestyle brand, has announced that it has agreed the acquisition of a freehold interest in a 30,000 square foot office building in the Group’s home town of Market Harborough for a total investment of £4.4 million including stamp duty and fees (the “Acquisition”).
The property, known as Compass House, is adjacent to Joules’ existing head office location and the Acquisition also includes the adjoining development land and car-parking space. The property will become the Group’s new head office following a period of refurbishment.
The Acquisition will, in part, be funded through a new £3.5 million, five-year, term loan facility arranged with Barclays Bank Plc. The Group is also extending its existing £25 million revolving credit facility with Barclays Bank Plc by 14 months to July 2021.
The Board believes that the Acquisition provides the Group with the capacity to support its long term growth objectives. The transaction is anticipated to be earnings neutral throughout the period of refurbishment and earnings accretive following full occupation of the site, anticipated in FY19.
Colin Porter, Chief Executive Officer of Joules, commented:
“We are very pleased to announce the acquisition of a new head office in the Joules home town of Market Harborough. Joules is growing quickly and we are confident that this represents another important step in supporting the brand’s long term growth both in the UK and internationally.
Our skilled and dedicated people are the heart of our business. This move will enable us to bring our head office teams together in a modern and collaborative working environment. We are confident that this will further strengthen our unique culture and brand values as well as enhancing efficiency and creativity.”
