Swedish fashion chain Kappahl has bought its previously rented head office and distribution centre, by acquiring the company that owns the property for SEK447m (US$74.7m).

Kappahl signed a contract yesterday (28 May) for the premises, in Mölndal, on the outskirts of Göteborg, which it has rented since 2003.

Its Swedish head office includes central functions like design and purchasing, marketing and administration, and its distribution centre there handles nearly 60m garments annually, the company said. The buildings' total area is 48,000 square metres.

The retailer, which focuses particularly on fashion for women from 30 to 50, also said that an adjacent, undeveloped site of 11,000 square metres has also been bought "to safeguard future growth".

Company chief financial officer Håkan Westin said: "Kappahl is a modern fashion company and for us distribution and logistics are central for our effectiveness and profitability. This, coupled with wanting a stronger cash flow, is why we are buying the property."