Meyer Bergman is in advanced talks to snap up the Old Bond Street flagship of fashion house Alexander McQueen for around £160m – a 2% yield.
The fund manager, which already owns the neighbouring Burlington Arcade, is in exclusive discussions with NFU Mutual to buy 5 Old Bond Street, W1, also known as Standbrook House.
The 23,265 sq ft building boasts ground-floor shops let to McQueen and Tods that have 12 years left on their leases.
The building also includes five upper office floors that have undergone a refurbishment including a new reception.
NFUM announced lettings on three of the office floors to property company Tritax, foreign exchange company Argentex and auctioneer John Pye & Sons this summer at rents of around £85 per sq ft.
The talks to acquire Standbrook House come ahead of an anticipated first close for Meyer Bergman’s third European retail property fund, fundraising for which began in July.
The investment manager’s €750m (£530m) Meyer Bergman Real Estate Partners II fund – which secured commitments from 15 pension funds, asset managers and endowments – became fully committed this summer following the acquisition of 103 Mount Street, W1, the home of French luxury label Céline, for £81m – a 3% yield.
Burlington Arcade, owned jointly with Thor Equities, is held in Meyer Bergman’s first fund, which was raised in 2010. The arcade has since undergone a refurbishment.
Chapman Petrie and Hoddell Stotesbury Morgan advised NFUM.
