A wave of investment into the eastern end of London’s Oxford Street has prompted the owner of Zara’s latest store to seek a £150m sale of the building.
BA Pension Fund has approached a handful of investors regarding an off-market sale of the Allford Hall Monaghan Morris-designed block at 61 Oxford Street, W1.
Last month, Lush’s store at 175-179 Oxford Street, W1, was bought by a Hong Kong investor at a 2% yield, while Land Securities’ and Frogmore’s Oriana scheme, which sits almost opposite the new Zara and is anchored by a 149,000 sq ft Primark, is being bought by Zara owner Amancio Ortega for £450m.
Sitting on the corner of Oxford Street and Soho Street, the six-storey 61 Oxford Street was bought by BA Pension Fund in 2009 for £18m and developed in partnership with Richard Leslie’s Dukelease Properties. It includes a 35,000 sq ft flagship Zara, 14,000 sq ft of offices and six flats, branded as 11 Soho Street.
A source said: “The owners are not desperate to sell but they have seen the hype in the area and made it clear they are interested in selling off-market.”
The Zara store – the retailer’s fifth on Oxford Street – is due to open imminently, with the office and residential phases completing in the next few months.
The discussions have been prompted by a wave of investment into the eastern end of Oxford Street this year, ahead of the opening of the Crossrail station at Tottenham Court Road in 2018.
Developers including Derwent London, Great Portland Estates and Almacantar are investing in the area as it begins to discard its image as the shabby end of London’s most famous shopping street.
