Sports Direct confirms £120m sale of Shirebrook HQ

Mike Ashley’s Sports Direct has confirmed the £120m sale of its Derbyshire headquarters in a deal with a Malaysian pension fund.

The retail group has sold the freehold to its Shirebrook logistics centre to Kwasa Logix Sportivo, which is said to be owned by the Malaysian Employees Provident Fund (EPF).

On completion of the deal, Sports Direct will also take a 15-year lease on the Shirebrook property and continue to operate it as a distribution centre, offices and retail business.

It will use the sale proceeds to boost its working capital and put towards its group operations.

The deal comes as Ashley also nears a sale of Newcastle United after Dubai-based tycoon Sheikh Khaled Bin Zayed Al Nahyan revealed on Monday the pair have “agreed terms”.

Ashley’s sale of the Shirebrook HQ freehold sees it fall under the ownership of EPF, which manages the pension savings of more than seven million workers. EPF also owns one of the Battersea Power station developments.

The property sale comes as Ashley looks to raise cash, with speculation he may be looking to make further acquisitions of troubled retailers. He sold his entire 4.8% stake in struggling online firm Mysale last week.

Ashley has already snapped up House of Fraser, Sofa.com and Evans Cycles over the past year. But he was stung by the administration of Debenhams after he failed to secure a takeover of the department store chain and saw his stake wiped out as lenders took control.