A Russian investor is acquiring the Rolex Retail unit at One Hyde Park in London for a net initial yield below 3%. The high-end retail unit within the One Hyde Park residential development is located adjacent to the Mandarin Oriental Hotel in Knightsbridge.

A Russian investor is acquiring the Rolex Retail unit at One Hyde Park in London for a net initial yield below 3%. The high-end retail unit within the One Hyde Park residential development is located adjacent to the Mandarin Oriental Hotel in Knightsbridge.

The vendor PGGL, the developer of One Hyde Park, was advised by Savills and SJ Berwin, Nightingale Partners & Gilchrist Solicitors advised the purchaser.

Offers were sought in excess of £12.5m for Rolex Retail Unit, reflecting a net initial yield of 3%. Following competitive bidding from a varied investor base, contracts were exchanged for the purchase of the virtual freehold interest with Williston Properties on behalf of a newly formed property fund established by 35-year-old Russian investor, Grigory Guselnikov. The investment volume is in excess of £13 mln (EUR 14.9 mln).

The property is leased to Rolex for a further 14.5 years at a rent of £400,000 per annum, reflecting c.£300 per sq ft ITZA. The investment offers a highly secure income return and excellent rental growth prospects; the adjacent identical unit has recently been leased at £587 per sq ft ITZA.

The fund benefits from a CIS investor base and focuses on prime Central London assets offering core returns with solid rental growth prospects.

Savills will bring a second retail investment, also at One Hyde Park, to the market in September. Offers are sought in excess of £11.5 mln for the property which is let to McLaren on a new 15-year lease.