Ted Baker buys Camden's 'Ugly Brown Building' for £55 million

Ted Baker has splashed out out more than £55 million to buy its Camden head office, even though the property's name may frighten its fashion-loving followers.

The fashion retailer has acquired the freehold of Block B, Canal Reach, St Pancras Way, otherwise known as The Ugly Brown Building.

It will set the company back £55.25 million plus a further £3 million in costs such as stamp duty.

Ted Baker said it will finance the deal, struck with Leysin Investments, with the help of a £60 million loan.

Despite its moniker, founder and chief executive Ray Kelvin called the Camden block, which cost more than £1.1 million to rent a year, "iconic".

"The Ugly Brown Building has become an iconic building in a rapidly developing central London location and a very important ingredient of Ted Baker's history and unique personality," he said.

"This is great news for our business, our brand, and our people."

Separately British Airways Property Trustees - a pension fund - have agreed to buy Blocks A and C at the same site.

Ted Baker has taken an option to buy 50% of Block A from the fund for £5.1 million within the next 15 months.

The firm added that buying up the building and securing an opportunity to expand provides certainty over costs.