Lettings in London’s Covent Garden and Bond Street achieved record retail rents in Q1 2016, according to BNP Paribas Real Estate.
Levi’s took space at 119 Long Acre, WC2, paying £700 per sq ft, the top retail rent recorded in Covent Garden over the period. A letting to Indian billionaire Nirav Modi at 31 Old Bond Street, W1, at £1,750 per sq ft zone A for a jewellery shop beat the retail rent record for the street.
Shifting vacancy levels across the West End were the result of additional new units and space coming available for tenant mix strategies.
The largest vacancy increase was in Knightsbridge, which saw levels increase to 6.3%, partially as a result of the redevelopment of 127-135 Bond Street.
Central London retail investment mirrored the majority of the commercial real estate investment market in the first quarter of 2016.
A total of £376m was invested in the first quarter, a 13% decline on the same period in 2015. In addition, this total was also 19% under the three-year average quarterly volume.
Of the total volume invested in Q1, 87.8% came from overseas investors, significantly above their total Q1 2015 contribution of 66%.
The largest deal of the quarter was Cicerone Holding’s purchase of 203-206 Piccadilly, W1, for £92m, a 3.2% yield, from Meyer Bergman. The 63,000 sq ft unit is fully let to Waterstones and is its UK flagship.
BHS sold its flagship shop at 252-258 Oxford Street, W1, to Oxford & City Holdings for £55m, where Polish fashion brand Reserved has agreed a 106,000 sq ft prelet.
US-based investment firm Thor Equities purchased 1 Dover Street, W1, from Korean Hanjin Shipping for £47.2m in Q1. The 23,300 building, located opposite the Ritz Hotel, is home to the nightclub Mahiki.
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