Selfridges owner the Weston family is close to securing a deal to buy 105 Wigmore Street, W1, for £130m.
The purchase of the 77,000 sq ft block will unlock a £300m development opportunity that the family has been working on since 2003, when it instructed architects to design a 100,000 sq ft retail extension and a 300,000 sq ft office and hotel extension behind the store.
Selfridges has been buying property behind the store over a series of separate purchases with a view to extending the department store. This Wigmore Street property was the last one on the block behind the department store that the family does not yet own.
The family is understood to be in talks with Standard Life Investments, which instructed JLL to seek offers in excess of £125m – a 3.75% yield – for the West End trophy, on behalf of its £3bn Pooled Property Fund.
It is fully let to tenants including private equity firm Revcap, property investment company Topland, flight services company BBA Aviation, corporate finance firm Kildare Partners and SandAire, an investment office for high net worth families and foundations.
The property was refurbished in 2013. Revcap and Topland, which signed in 2014 and 2013, pay £87.50 per sq ft and £85 per sq ft respectively. The 10,110 sq ft ground- and lower-ground-floor retail space is a flagship showroom for Italian car company Fiat.
CBRE is advising the Weston family.
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