Kering set to pay £13m rent for Bond Street store
Furthermore, O&H is preparing to market a nearby 150,000sq ft building that has been granted planning permission to be converted into a luxury hotel
Luxury retailer Kering is set to pay £13m or more per year for a new Yves Saint Lauren store on Bond Street, according to the Sunday Times.
This figure of £13m is thought to be a UK record surpassing the £11m paid by Ralph Lauren for its Bond Street store in 2016.
The owner of brands such as Gucci and Balenciaga is believed to have beaten competition from LVMH and Richemont to lease the store.
The Times stated that the deal shows that the luxury goods market is in “good shape” as its clientele have been “largely unaffected” by the cost-of-living crisis, enabling brands to hike prices under the guise of inflation.
Luxury retailers in London are also benefiting from the return of Chinese tourists after Beijing lifted a ban on international travel.
The building is owned by the investment firm jointly held by the families of property investors David Gabbay and Eli Shahmoon – O&H Properties.
O&H was seeking offers in excess of £9m a year and was advised on the deal by property agents from CBRE.
Furthermore, O&H is preparing to market a nearby 150,000sq ft building that has been granted planning permission to be converted into a luxury hotel.