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Reacting to the inflationary pressures felt across Europe, UK telecom giant Vodafone Group Plc has decided to sell its long-held headquarters in England and rent out half of the premises to save costs.

Iqon Capital has agreed to buy the total of seven buildings known as “The Connection” on behalf of Aljazira Capital for an undisclosed figure, according to the company’s statement.

Vodafone will clear out three of the buildings to be renovated as a business campus. The site consists of about 486,810 square feet (45,226 square meters) of office space set in 38 acres (15 hectares) of grounds.

The sale follows a tight situation for Vodafone as its share price hovers around 25-year lows and the abrupt ousting of its CEO, Nick Read, in December. Layoffs are also in the offing as the company tries to improve operations and strike deals to consolidate in key markets, including Britain.

In September, Vodafone owed about €45.5 billion ($49.3 billion) in net debt. The recent divestment of Vantage tower assets was done partly to restore some balance sheet health.

Vodafone’s footprint is shrinking as the company embeds a blend of home, site and field work for its 10,000 UK employees, with the campus acting as a hub for face-to-face meetings. Newbury is home to the company’s UK unit as well as research and development teams.

Also read: Vodafone: The First UK Mobile Operator to Offer 5G SA Network

Saudi Arabia’s Aljazira and Iqon, a London-based private equity real estate firm, have appointed Oval Real Estate to lead the development and asset management of the properties.

As per news reports, the sale was brokered by Colliers International Group Inc., which was appointed to sell the properties last year and was seeking bids of about £70 million.

Europe experienced its highest inflation in generations. January data showed that consumer prices in the eurozone rose at an annual rate of 9.2% in December, down from 10.1% in November.

Also read: e& Announces Stake Increase in Vodafone Group

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