Grosvenor Britain & Ireland has sealed a deal to buy a minority stake in luxury womenswear brand Roland Mouret, marking its first equity investment in an occupier.
The landlord made the acquisition through its tenant investment fund, which was set up in 2020 to help occupiers with strategies for business growth through equity and debt partnerships.
Grosvenor said it has around £5m of deals in the pipeline for the fund. Previous deals include providing debt to support JKS Restaurants’ latest venture, Bibi, and to salad bar concept Atis.
Bibi launched last month in North Audley Street, Mayfair, W1, while Atis opened in Eccleston Yards, Belgravia, SW1. Both operators have also signed for “green” leases.
James Raynor, chief executive of Grosvenor, said the fund aims to provide growth financing for “strong businesses with clear diversification strategies”.
“Part of this was to force us to get better and understand what our tenants are really dealing with, and get under the skin of their businesses,” Raynor told EG, adding: “The success of our occupiers is a circular thing – we aren’t going to have successful property investments if the occupiers themselves aren’t successful.
“A lot of retail and hospitality businesses – particularly the independent ones, which tend to be our occupiers – have had a torrid time. They have lost a year’s worth of cash flow. We want to ensure we can do what we can to keep them going. As the manager of a whole estate, it’s important to us that they are as vibrant and lively as they can be.”
Raynor said the deal represents the “evolution” of the traditional relationship between retailers and tenants. “We provide space for companies to undertake their business,” he said. “How we are remunerated for it [doesn’t] need to be as blinkered as saying it’s only through rent.”
Mark Langthorne, chief executive of Roland Mouret, said: “As long-standing tenants on Carlos Place, we value [Grosvenor’s] tremendous support for the local area during the pandemic and believe there is great synergy between our values to help realise our plans for future growth.”
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