British American Tobacco Considers Selling London HQ

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19 August 2020

British American Tobacco is considering selling its eight-storey Westminster headquarters, according to media reports. 

The makers of Lucky Strike and Vogue cigarettes has occupied Globe House in central London since 1998, and the sale could raise more than £250 million as reported in The Times.

A spokesperson told the newspaper that the company was considering a sale-and-leaseback deal in which it would remain as tenant: “We are continually striving to become a stronger, simpler and faster organisation. As part of this journey, we are always exploring ways to best leverage our assets, including the possible option of a sale and subsequent leaseback of our Globe House head office in London.”

September 2019 saw BAT restructure and cut 2,300 jobs, citing a new focus on e-cigarettes and other products lines as its reasoning. The company employs around 55,000 employees worldwide, with 55 factories in 48 countries.

According to Co-Star News’ data, the lease on Globe House commenced in June 2002 and expires in July 2024, and British American Tobacco (BAT) pays £47.01 per sq ft on the current lease.

The potential sale of the FTSE 100 company was first reported by Estates Gazette.

Picture: A view of Globe House from across the River Thames. Image Credit: H005

Article written by Ella Tansley | Published 19 August 2020

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