A Far Eastern investor has exchanged contracts to buy luxury fashion brand Canali’s headquarters and flagship store on New Bond Street, W1, for around £45m, in an off-market deal.
The price for the 11,000 sq ft West End block at 126-127 New Bond Street, reflects a yield of just over 2%, and a targeted reversionary yield of 3.5% when rent rises kick in.
The buyer is making his debut in London, but believed to be from a retail background.
Canali is paying a £450 zone-A rent for the shop, and has a rent review next year.
As well as the shop, the building comprises office space which the company also occupies. The site also has potential for some redevelopment in the future, with consent for flats.
A report by the New West End Company and Jones Lang LaSalle earlier this year, singled out Far Eastern investors as being one of the most demanding for retail investment assets in the luxury quarter.
DTZ is advising the purchaser; CBRE is acting for the private overseas vendor. Both declined to comment.
joanna.bourke@estatesgazette.com
