TED.L Regulatory News (TED)

17 December 2015

TED BAKER PLC

Acquisition of Property

Ted Baker Plc ("Ted Baker" or the "Company"), the global lifestyle brand, announces that on 16 December 2015 it entered into a contract with Leysin Investments Limited to purchase Block B, Canal Reach, St Pancras Way, London (also known as The Ugly Brown Building) through Big Lobster Limited, a wholly owned subsidiary of Ted Baker (the "Acquisition"). The Ugly Brown Building is a 78,920 sq. ft. building currently occupied by Ted Baker as its head office.

Ted Baker has agreed to purchase the freehold property for £55.25m plus costs of £3m, which includes stamp duty and relevant acquisition costs. The Acquisition will be financed by the addition of a £60m secured term loan to the Company's existing multi-currency revolving credit facility with The Royal Bank of Scotland and Barclays. The facilities contain appropriate financial covenants that will be tested on a quarterly basis.

Separately, British Airways Property Trustees Limited ("BAPTL") has agreed to purchase Blocks A and C, Canal Reach, St Pancras Way, London, which are adjacent to The Ugly Brown Building, from Leysin Investments Limited.

Ted Baker has entered into an agreement with BAPTL which grants Ted Baker a unilateral option to purchase 50% of Block A, a 25,347 sq. ft. building which is currently vacant, (the "Option") for a total cash consideration of £5.1m at any time within 15 months from the date of the agreement.

The Board believes that the Acquisition and Option are highly attractive to Ted Baker as they offer an excellent opportunity to take ownership of its existing head office and potentially acquire new additional space for expansion as the Company's operations continue to grow. The net annual rent on the Ugly Brown Building is £1,173,500, so this opportunity provides the Company certainty over operating costs and removes the Company's exposure to rising rent reviews.

Completion of the Acquisition is expected to take place in January 2016.

Commenting, Ray Kelvin CBE, Founder and Chief Executive, said:

"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. We are delighted to have secured our future in this excellent location as Ted Baker continues to develop as a global lifestyle brand. We are confident that this will help us preserve our culture and to continue to attract and retain great talent. This is great news for our business, our brand, and our people."

Contacts:

Ted Baker Plc +44 (0)20 7255 4800

Ray Kelvin CBE, Founder and Chief Executive

Lindsay Page, Chief Operating Officer and Group Finance Director

Hudson Sandler +44 (0)20 7796 4133

Alex Brennan

Michael Sandler