The Hong Kong owners of Mutual House on Regent Street, W1, once home to the Ferrari store, are set to make a substantial profit after agreeing to sell the building to CBRE Global Investors.
TC Assets has agreed terms to sell the long leasehold interest in 193-201 Regent Street for just over £85m – a 3.7% yield – which is more than double the £36m it paid for the building in 2011.
The uplift comes after a record zone-A rent was achieved at the building last year.
Fashion brand Hackett agreed to pay £650 per sq ft for the shop, which was vacated by Ferrari in 2014.
In total, the retail element of the block covers 11,659 sq ft, while the office element covers 15,274 sq ft.
The deal underscores investor confidence in the Crown Estate’s rejuvenation of the area, which has recently attracted international brands such as Burberry, Superdry and Hollister.
Michael Elliott and Savills advised the vendors.
The Crown Estate retains the freehold.
chris.berkin@estatesgazette.com
