Sports Direct share price: Retailer pockets £44m from property sale

on May 8, 2015
Updated: Oct 21, 2019
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Sports Direct (LON:SPD) had sold the 999-year lease for its offices in London’s West End to the University of Westminster for £44 million, The Independent today reported. The sporting goods retailer made a healthy profit on the 120 New Cavendish Street site, having bought the premises in 2007 for £30 million. The price agreed for the 32,500 sq ft office block is also well in excess of the £38 million that the property agents Michael Elliott and Savills were instructed to seek.

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According to Retail Week, Sports Direct is now on the hunt for a 100,000 sq ft site in London to incorporate a new office, superstore and gym for customers. The Mike Ashley-owned retailer has commissioned agents to find a ‘prime’ site in the capital. Chief executive Dave Forsey said, as quoted by the trade magazine: “We are continuing to strengthen our market position and expand our offering and we need more space.”
Sports Direct’s share price jumped as much as five percent this morning, as investors hailed another Conservative-led UK government. As of 09:36 BST, the stock was changing hands at 648.50p – 3.76 percent up intraday. The retailer looks set to benefit from David Cameron’s victory, as Labour leader, Ed Miliband, had promised to increase the minimum wage and scrap ‘zero-hour’ work contracts. Sports Direct is responsible for a fifth of all zero-hour contracts in the UK retail sector, with nearly 15,000 of its employees subject to contractual terms that do not specify set working hours or guaranteed income.
As of 10:25 BST, Friday, 08 May, Sports Direct International Plc share price is 652.00p.

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