BHS is close to securing deals to sublet the retail element of its Oxford Street flagship, W1, prepping the site for sale.
It has decided to divide the 100,000 sq ft shop and sublet it to a number of retailers to maximise its value.
Polish fashion brand Reserved is under offer for 30,000 sq ft on a 25-year lease, where the rent would be expected to be around £4m pa.
Swedish furniture giant Ikea is looking at the remaining 15,000 sq ft as a high street flagship for its new smaller format click-and-collect stores.
It would be a UK debut for Reserved, which is run by a Polish conglomerate of LPP.
BHS has 46 years remaining on its lease and has instructed Cushman & Wakefield to handle the potential sale, following the sale of the business to Retail Acquisitions, which paid Sir Phillip Green £1 for the business in March this year.
The long-leasehold of the shop is valued at around £85m – a 5% yield
The remainder of the space would be used as office space, with BHS considering the first floor for its new London HQ following the sale of its Marylebone office earlier this year.
The building is being marketed as having development potential but any scheme would require the cooperation of freeholder the Abu Dhabi royal family.
Jackson Criss is the leasing agent on BHS Oxford Street.
