Fashion group LVMH has bought the freehold to its Mayfair office from Aberdeen Asset Management in an off-market deal for £35m, a yield of just 2%.
The company considered buying the 11,500 sq ft office at 15 St George Street, W1, six years ago following a rent review, but it was not for sale at the time.
It has now taken advantage of Aberdeen’s appetite to divest despite having five years remaining on its lease.
Aberdeen is also close to finalising a deal to sell the neighbouring 14 St George Street, W1, in a separate deal, having earmarked both assets as “mature”.
Owner occupation is an increasingly common strategy for luxury retailers on prime shopping streets keen to ensure future occupation and to mitigate rising rents.
However, it has not previously been associated with retailers buying their London office space, said a source.
The number of Bond Street shops owned by their occupiers has risen by 28% over the past two years, according to Savills, with LVMH among the owner occupiers.
Colliers International acted for Aberdeen; BNP Paribas Real Estate advised LVMH.
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