A joint venture between Oxford Properties Group and Richemont Luxury Group Real Estate Partners is buying 48-50 New Bond Street for £198 mln (€229 mln).
The vendor is a client of Aberdeen Asset Management. Oxford said that the purchase was at an advanced stage before the UK referendum, but was put on hold after the Brexit result, before being revisited this month.
'We are delighted to complete this second acquisition on Bond Street in a joint venture with Richemont, demonstrating the strength of the partnership and expanding the joint venture’s position as a major landlord on the street,' said Paul Brundage, executive vice president and senior managing director Oxford Properties Europe. 'The acquisition is highly strategic as Oxford continues to expand its global luxury high street retail portfolio, with a focus on London, New York and Paris, capitalising on long-term growth trends in luxury consumerism and continuing strong demand from retailers for prime space on the best streets worldwide.'
The 4,474 m2 asset was developed by Scottish Widows in 2009 and provides 1,371 m2 of prime retail space across two units, leased to Mulberry and Pinet, together with 3,103 m2 of Grade A office space, leased to tenants including Ralph Lauren, Atomico, Varde Partners and Urban & Civic.
'This fifth acquisition for RLG Real Estate Partners in less than 24 months confirms their selective appetite for high street retail in strategic locations where sustainable rental growth can still be expected to provide superior risk-adjusted returns. This second acquisition with Oxford Properties will strengthen the existing relationship and provide the basis of significant asset management synergies that transcend the two properties,' said Etienne Pax, managing director RLG Real Estate Advisors.
The acquisition by Oxford and Richemont, in a 50:50 joint venture, follows the acquisition of 130–137 New Bond Street in 2014. The partnership now controls 70 metres of retail frontage along a single section of Bond Street, with retailers including Belstaff, Breitling, Church’s, Corneliani, Pinet and Mulberry.
Oxford will act as lead asset manager to the joint venture, with RLG Real Estate Advisors acting as strategic asset advisor.
Savills and Harper Dennis Hobbs advised the Oxford-Richemont partnership. CBRE and Colliers advised Aberdeen Asset Management.
