Aspida Capital, a family office specialising in investment and asset management in UK real estate, has completed the purchase of 105-109 Oxford Street for £18.5 mln (€21.6 mln), in partnership with another family office.
The property has two long-term retail tenants, Flying Tiger and Harmony, producing a passing rent of £1,075,000 per annum, with the rents rebased and leases extended during Covid but still provides early lease events and asset management opportunities.
There is a planned review for a minimum overall rent increase in 2025 to £1,250,000, which is now likely to be higher based on rental tone.
The previous owner of 105-109 Oxford Street, Thor Equities, acquired the building in 2015 for £42 mln. At that time, it had a combined income of £1,127,580 per annum. By 2019 the estimated rental value of the property was £1,638,700 with a market value in excess of £50 mln.
Antony Antoniou, managing director of Aspida Capital, said: 'Oxford Street is reclaiming its crown as the UK’s top retail destination. What started with the Elizabeth Line drawing increased footfall is now being cemented with the £1bn investment in the flagship retail stores for international brands.
'This acquisition represents a very attractive investment opportunity, with excellent scope for both rental and underlying asset value growth, over the short to medium term.
'We are currently seeing a narrowing of the gap between vendor expectation and investor appetite in the real estate sector. This has been driven by increasing pressure from banks for returns on their investments and the ‘higher for longer’ interest rate mantra from both sides of the Atlantic, underlining that any swift change in the market is unlikely.
'The current market conditions are ideal for family office investors, who are cash rich and ready to deploy that capital in quality assets. We are actively looking at a number of commercial investment opportunities in the Capital and beyond.'
Aspida Capital was represented by Mark Harrison of Cyril Leonard and the vendors were represented by Henry Leighton and Ed De Stefano of Tydus.
Aspida Capital is primarily a family office focussed on wealth preservation, asset management and investment structuring. The company currently holds assets in both prime and secondary locations and is actively looking for new investment opportunities.
