Italian fashion house Prada is close to completing on a £90m purchase of its UK flagship on Old Bond Street, W1, in the heart of the luxury shopping district.
During London Fashion Week, the company is understood to have exchanged contracts to buy 17-18 Old Bond Street for its own occupation, almost a month after Estates Gazette revealed it had approached the owner with a close to £90m bid for the asset.
The circa 20,000 sq ft property is owned by an Irish consortium, which paid £35m for it in 2006. To date, it had rejected numerous offers for the sought-after asset.
Sources said that designer label Prada, which has been at the building since the 1990s, was keen to take ownership of the block to cut its rental costs.
The fashion chain has just less than 10 years remaining on its lease and last year is understood to have seen its zone-A rent rise from around £500 to £700. Agents said that the store’s zone A could almost double at forthcoming reviews.
Prada’s acquisition of its flagship store would follow in the footsteps of its rival LVMH, which has been accumulating freeholds in the capital, including 160 New Bond Street, which it bought from Irish investors Ray and Eileen Monahan for £48.5m in 2010.
Morgan Williams and Savills advise the landlord of 17-18 Old Bond Street; Harper Dennis Hobbs is understood to have represented Prada.
All parties declined to comment.
joanna.bourke@estatesgazette.com
