The multinational telecommunications firm Vodafone Group Plc has announced the sale of its Newbury, England, headquarters, where it has been based for decades, as per Bloomberg.
The company will rent back just over half of the site's premises as it downsizes and cuts costs.
Vodafone Group Cutting-Cost
Iqon Capital has agreed to buy a total of seven buildings that make up "The Connection" on behalf of Aljazira Capital for a price that has not been disclosed. Colliers International Group Inc brokered the said transaction.
Since the company's inception in the mid-1980s, Vodafone has maintained operations in Newbury. The sale takes place during a time of major upheaval for Vodafone.
Meanwhile, the company's share price has recently dropped to the lowest in over 25 years, and in December, the board of directors unexpectedly fired Chief Executive Officer Nick Read.
As the company attempts to enhance its operations and reach agreements to consolidate in key markets, including Britain, it has planned to cut back on the number of employees.
Details of the Sale
According to Bloomberg, the site has 486,810 square feet (45,226 square meters) of office space on 38 acres (15 hectares) of land. According to Iqon, three buildings will be modernized as a business campus.
Oval Real Estate has been appointed to lead the development and asset management of the properties by Saudi Arabia's Aljazira and Iqon, a London-based private equity real estate firm founded by Giovanni Gregoratti and Carlo Ratti.
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The sale of the headquarters comes as Vodafone's footprint in the UK is shrinking as the company embeds a blend of home, site, and fieldwork for its 10,000 UK employees, with the campus serving as a hub for face-to-face meetings. Newbury is home to the company's UK unit as well as research and development teams.
Losing Foothold
This is not the first time Vodafone has sold a large property in the United Kingdom. Vodafone Group Plc's stake in its towers subsidiary was sold to KKR & Co. and Global Infrastructure Partners (GIP) in November 2022 in a transaction valued at €16.3 billion ($16.2 billion).
At the time, the British telecom company issued a statement confirming the €32-per-share (approximately $32.15) offer for Vantage Towers AG, which is listed on the Frankfurt stock exchange. When compared to Vantage's Monday closing price, the price represents a 12% premium.
Meanwhile, Vodafone announced in January 2022 that it is retiring its 3G network after 17 years, or nearly two decades of operation, despite the emergence of the much faster 4G network.
The company intends to devote its full attention to the next generation of connectivity, such as 4G and 5G networks, which require additional improvements and expansion.
The sale of the Newbury headquarters is part of Vodafone's ongoing effort to cut costs and improve operations. The sale of the headquarters and the appointment of a new CEO, and planned job cuts, are all steps the company is taking to try and turn things around.
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