Ladbrokes to move out of London HQ

Ladbrokes could move out of its north-west London headquarters as early as next year after the operator’s landlord was granted prior approval to convert the offices into residential flats, eGaming Review has learned.

According to an application posted on the Harrow Council website, Marylebone Property Investments last month requested permission to turn 175 – 205 Imperial House, Ladbrokes’ head office since 1990, into 103 self-contained flats.

The Council granted the planning permission prior approval last week and has since invited comment from interested parties ahead of making a final decision.

Ladbrokes’ tenancy agreement for the Rayners Lane-based offices, which houses approximately 1,000 staffers, runs until 2020, however, EGR understands the contract includes a break clause which could be executed in either 2017 or 2018.

The news is the first concrete sign Ladbrokes could be ready to relocate to east London and share office space with planned merger partner Gala Coral at One Stratford Place. Upon announcing the merger last year, both Ladbrokes and Gala Coral said the combined firm would work from one London base.

Speaking to EGR this morning, a spokesperson for Ladbrokes refused to be drawn on the planning application or the existence of a break clause, but did reveal the operator was likely to seek new offices, merger or no merger.

“We have yet to make a decision about the future of Imperial House but colleagues are aware that irrespective of whether or not the merger goes ahead it is unlikely that the long term future of our head office will be at the Rayners Lane building,” the spokesperson said.

“No decision has been made on any new location – talk of specific offices are only speculation.

“We have a lease until 2020 so there is no immediate rush to make a decision but if the merger goes ahead we will address the head office location as part of that process,” the spokesperson added.

Gala Coral signed a 15-year lease for One Stratford Place in 2012 and occupies the whole of the seventh and half of the eighth floor of the building – built as part of the 2012 Olympic Games regeneration project – and has an option to rent the remainder of the eighth floor.

The planned merger between Ladbrokes and Gala Coral is currently subject to a Competition and Markets Authority (CMA) investigation, with a final decision due on or before 24 June.

However, the CMA is widely expected to rubber-stamp the deal having last month published its initial findings which stated the merger could go ahead should the pair dispose of approximately 375 high street shops.