GAME sells head office and distribution centre

Retailer GAME digital and entered into a sale and leaseback agreement for its Basingstoke head office and distribution centre.

The company’s freehold interest in both locations has been sold to Portsmouth Estates Developments Limited, a local property investment firm owned by Lord Oliver Henry Rufus Lymington, who is the 35-year-old son of the 10th Earl of Portmouth Quentin Wallop.

The deal is valued at 13.5m, with GAME saying the cash will be invested back into the business.

The company says that it will continue to operate out of both buildings. The new lease deal runs for 17 years, with annual rent totalling 1.06m, although this will be reviewed and likely increased every five years. The deal is likely to complete on October 7th.

The news follows the recent resignation of chairman David Hamid, who will leave after nearly five years with the company following the company’s January AGM. Non-executive director John Jackson has been appointed as chairman designate.

GAME share price is currently struggling at 73.5p, well down on its December 2014 high of 360p. It has recovered from the July low of 60.75p, however.