BHS is exploring options for a sale of the long-leasehold of its Oxford Street, W1, flagship, which is valued at around £85m – a 5% yield.
It has decided to divide the available space of its 100,000 sq ft flagship and sublet it to a number of retailers to maximise its value.
BHS has 46 years remaining on its lease, and has instructed Cushman & Wakefield to handle the potential sale, following its sale to Retail Acquisitions, which paid Sir Phillip Green £1 for the business in March this year.
A sale of around £85m would equate to a value of £1,000 per sq ft, where average capital values on the street are £4,000 per sq ft – equivalent to a 2.25% yield.
The building is being marketed as having development potential but any scheme would require the cooperation of the freeholder, Abu Dhabi’s royal family.
Interest from overseas investors, the development community, as well as retailers is expected for this opportunity.
Jackson Criss and Harper Dennis Hobbs are leasing agents on BHS Oxford Street.
