The Crown Estate is leading plans to create one of the largest and most prominent shops on Oxford Circus, W1, by knocking together several existing buildings.
The Crown and co-owner the Church of Wales plan to redevelop 225-259 Regent Street – which is currently occupied by United Colors of Benetton – together with several adjoining units owned by Aviva Investors.
The retailer has agreed a deal to vacate the corner spot at the intersection of two of the country’s busiest shopping streets in favour of a new shop at Great Portland Estates’ 73-89 Oxford Street.
It has signed for 15,000 sq ft at a rent of £2.6m pa on a 20-year lease and is expected to move out by the end of 2017.
The Crown also owns the neighbouring 249-251 Regent Street, which is occupied by French Connection but will soon be vacant.
Together with Aviva’s ownerships at 265-269 Oxford Street and 257-261 Oxford Street – which are let to tenants including JD Sports, Vision Express, Three, Pandora and Ecco – there is potential to create a huge shop of around 50,000 sq ft.
Such a unit would be expected to attract interest from some of the world’s largest brands and department stores, several of which have been seeking the right venue for a UK debut.
These include Hong Kong-based luxury department store Lane Crawford, which has approached UK agents to express its interest in London; French department store Galeries Lafayette; and New York-based Bergdorf Goodman.
Discussions are ongoing between the landlords and agreements with several existing tenants have yet to be finalised.
If a deal can be agreed, work would not start until the end of 2017 at the earliest.
CBRE acted for GPE; Harper Dennis Hobbs acts for United Colors of Benetton.
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