Unity Re, the investment vehicle of the Italian Maramotti family, owner of the Max Mara Fashion Group brands, has acquired Salvatore Ferragamo’s London flagship store on 24 Old Bond Street. The investment volume of £141 mln (€158 mln) reflects a yield of 2.46%.
The 14,000 sq ft (1,300 m2) building was acquired from UK rural insurer NFU Mutual which has owned the asset since the early 1990s.
The landlord appointed CBRE and Chapman Petrie last year to approach a shortlist of investors on the sale which attracted multiple bids from around the world.
The ornate Grade II listed Gothic Revival style building with its characteristic spire bell tower, is one of the most iconic properties on Bond Street. Salvatore Ferragamo represent 85% of the total income with approximately 15 years unexpired, with the upper parts occupied by multi-let offices.
Tom Bostock, Fund Manager at NFU Mutual said 'We are delighted with the sale of 24 Old Bond Street. The asset has performed exceptionally well for the Fund over many years and having recently completed the rent review we felt the time was right to exit and redeploy funds elsewhere. We continue to hold prime London retail assets and remain confident in the market outlook.'
Richard Alsop, senior director at CBRE said ‘The sale confirms the continued lure of Bond Street for global investors. Robust occupational activity along with the significant boost expected from the Bond Street Public Realm project and Crossrail are driving confidence in the market. We expect further investment activity in 2018, although with the ownership profile dominated by those holding for the long term, opportunities to buy prime assets are becoming increasingly rare.'
NFU Mutual was represented by CBRE and Chapman Petrie. Unity Re was represented by Hall Lahaise.
