The site of THG’s 1m sq ft Manchester HQ could be sold to a sale and leaseback company managed by ICG Longbow, according to a report which will be heard at a meeting of Warrington Council next week.
THG initially acquired the site of Icon Business Park in 2019 in a deal estimated to be worth £250m, before selling the site to Moulding Capital in 2020. Moulding Capital is part of THG founder Matthew Moulding’s portfolio, and a separate entity to THG. The scheme completed in 2021.
However, the complex of five industrial units and an office is currently held as security for a £128m portion of a £202m loan Warrington Council gave to Guernsey-based Moulding Capital in 2020.
The report, due to be heard in council on Monday July 10, advises: “To seek Cabinet approval for the Council to novate a £128m portion of the loan for Moulding Capital Limited to SLBI Propco C Limited, a company set up to buy the Icon Business Park, five logistics assets and an office which are currently security for this portion of the existing loan. SLBI Propco C Limited is owned by the ICG Sale and Leaseback Fund, managed by ICG Longbow (“ICG”).”
The sale would partly repay the loan to the council “reducing the council’s risk,” the report continues.
The practical effects of the sale on THG may well be minimal beyond a change in the name of its landlord. As the name implies, ICG’s Sale and Leaseback Fund specialises in the purchase and leaseback of commercial properties. Last December it completed a similar, £220m deal for Morrisons’ distribution facilities.
THG has for some time been planning to move into a new HQ at Manchester Airport City, although work has not yet begun on the planned new site and a £67.5m loan facility from Trafford Council towards the new HQ was cancelled in January when THG failed to draw on it by the deadline.
