Arcadia Group’s Sir Philip Green is looking to borrow £50 million against its state-of-the-art distribution centre in Daventry to stave off the affects of the coronavirus crisis and keep the company afloat.
According to reports in Sky News the fashion retailer has approached banks and hedge funds about a new round of borrowing against its 404,000 sq ft fully automated warehouse on Prologis’ DIRFT III scheme in the East Midlands.
It is the second big retailing group to be known to be looking to raise funds off the back of positive investor sentiment for logistics property at the moment. Next Group is looking to raise £100m with the sale of a DC and headquarters office.
All 550 UK stores in the Arcadia portfolio are currently closed due to the government-mandated lockdown with some 145,000 staff facing furlough.
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Arcadia Group, which owns Top Shop, Burton and Dorothy Perkins, moved in to the state of the art DC last year. According to results filed at Companies House the Daventry warehouse came at a cost of £29.4 million.
The facility comprises a 404,000 sq ft floor plate with mezzanines providing around 1 million sq ft of storage space in total. It also has a 40,000 sq ft three storey offices and external hardstanding and landscaping.