The low-profile head of one of the UK’s oldest department store chains, Fenwick, is in talks to buy Fendi’s flagship store on New Bond Street, W1.
Chairman Mark Fenwick, great-grandson of the founder, is in discussions to buy the virtual freehold of the store at 141-142 New Bond Street from a private European family for circa £75m, reflecting a 2.5% yield.
Fendi, part of the LVMH Group, has a lease on the 12,000 sq ft shop until November 2027.
The property, which was brought to the market in September, will be a rare acquisition for the retailer. It is understood to own several of its 11 stores, including its flagship at 63 New Bond Street, W1.
Fenwick is one of a growing number of retailers investing in New Bond Street and the surrounding area.
Earlier this month, Italian fashion giant Prada bought the adjoining part of its Bond Street flagship at 16 Old Bond Street from a private Thai client of Square Bay. Retail group Bestseller, which is owned by the billionaire Anders Holch Povlsen family, and a vehicle affiliated with Zara parent Inditex, founded by Amancio Ortega, have also both been acquisitive on Oxford Street and the top of Bond Street.
More than 10 Bond Street properties have been bought for owner occupation since the recession, according to Jones Lang LaSalle.
A source said: “Fenwick is not a seller. Fifteen years [until Fendi’s lease expiry] will go very quickly. At that point, he could put in a Fenwick cosmetics counter, for example.
“That is why retailers like buying property – they have control. They are all interested, but there are not that many that have the money for Bond Street.”
Savills is advising the vendor; Cushman & Wakefield is acting for Fenwick.
All parties declined to comment.
annabel.dixon@estatesgazette.com
