Italian kebab chain Kebhouze is set to make its UK debut in the West End after agreeing to take an entire property at 159 Oxford Street, W1.
The property, owned by a private family investor, was previously home to the Flight Centre’s headquarters before the travel agency surrendered its lease during the pandemic. It was then temporarily let to a souvenir shop.
The fast-food operator will take up 4,028 sq ft across the basement, ground and upper three floors and roof space.
It will occupy the premises on a 20-year FRI lease, with break options every five years.
The step rent on the lease averages at £357,500, reaching £400,000 by year five. The deal equates to roughly £360 per sq ft Zone A.
The kebab brand will pay a base rent topped-up with an 8% gross turnover element. Incentives include a six-month rent-free period, with a further six months at a half-rent rate in the second year.
Kebhouze is planning to invest £1m in revamping the building for its European flagship location. It is aiming to open in December this year.
The business is backed by Italian influencer, DJ, reality TV star and entrepreneur Gianluca Vacchi.
Nick Scott of Ian Scott International, which advised the landlord on the deal, said it marks the “first time in the modern era that a restaurant will be trading a whole building on Oxford Street”.
Scott said: “We’ve been doing deals on Oxford Street for as long as I can remember. It’s a retail street with only a handful of restaurants, so to see a new one is a big thing, let alone a new one that occupies an entire building.”
Aldo d’Aponte of Arbitrage Group, which acted for Kebhouze on the deal, said: “This deal not only underscores the dynamism and resilience of London’s real estate market but also heralds a promising chapter for both Kebhouze and the vibrant F&B landscape of the city.
“I believe Kebhouze’s unique fusion of Italian finesse with the beloved kebab will make an indelible mark on Oxford Street, and I’m excited to see their continued success.”
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