Basingstoke: Game Digital agrees sale and leaseback of HQ
Game Digital has sold its Basingstoke head office and distribution centre for £13.5 million under a sale and leaseback agreement with Portsmouth Estates Developments. The video games retailer has now signed an initial 17-year lease term, with a tenant-only break clause after 12 years and an annual rent of £1.06m.
As the properties have been held on Game’s balance sheet at £7m, the sale will give rise to gain of £6.2m this financial year, after transaction costs of £300,000. The company said it will use the proceeds to reinvest in the business.
Game Digital made a successful return to the stock market in 2014, two years after being rescued out of administration by US activist hedge fund Elliott Advisors. However, the retail environment has been challenging for the games group and in August the firm warned that full-year sales would be 6% lower than last year.
The company has diversified from the high street to organising gaming events, with the acquisition of Multiplay last year, and it is also banking on the next generation of consoles which are launching next year to boost sales. The sale and leaseback agreement is due to complete on October 7.
Credit: CoStar
