Hong Kong investors’ love of prime West End retail property continues, with an Asian entity this week buying 181-183 Oxford Street, W1 in an off-market deal.
Emperor International Holdings has paid £35m for the 11,920 sq ft property from a private client of Cew Capital. The price reflects a 2.64% net initial yield.
Arranged over lower ground, ground and five upper floors, the building counts Vision Express as its retail occupier. The store pays a rent of £875,000 pa on an unexpired term of 12 years.
The sale is the latest in a spate of Hong Kong investors buying W1 retail stock. Property agents told Estates Gazette last year that Far Eastern consumers’ desire to buy luxury goods in London is a key factor behind the property sales, and that would-be investors have caught on to the fact that if consumers are spending, then tenants can afford rent hikes.
Deals in the past 18 months include a Far Eastern private investor agreeing to buy Gina Shoes’ home at 9 Old Bond Street for £19.2m, a yield of 1.42%, and a Chinese buyer paying £45m for 126-127 New Bond Street, which was let to fashion brand Canali.
James McCluskey, partner in the West End capital markets team at Knight Frank, which acted for the buyer, said: “With the arrival of Crossrail in 2018 the eastern stretch of Oxford Street is set so improve, and we are forecasting significant rental uplift on the back of the transport infrastructure improvements.”
The vendor was not represented
