Skyrocketing retail rents in Mayfair have prompted a European consortium to buy a W1 block for a price reflecting a record 1.5% yield.
Trophaeum Asset Management, acting on behalf of high-net worth individuals, has paid more than £17m for 6,152 sq ft 26 Albemarle Street, W1.
It is the lowest net initial yield recorded on Albemarle Street. The lowest recorded in the area is at 9 Old Bond Street, where a private investor paid Guys and St Thomas’s Hospital £19.2m – a 1.42% yield – in July 2013.
Trophaeum already owns a number of properties on Albemarle Street, at numbers 18-19 and 37.
The 26 Albemarle Street property is let to Japanese restaurant Sumosan until 2019, but a rent review is taking place this month.
As a result, its present low £120 per sq ft zone A is expected to rocket. Other shops on the street are securing £400 zone-A rents.
Over recent months, Albemarle and Dover Street have become an alternative home for luxury goods occupiers, which have been deterred by higher West End rents of £700-£1,300 per sq ft zone A on Bond Street.
Michael Elliott advised the vendor, Glebe Holdings; the buyer was not represented.
joanna.bourke@estatesgazette.com
