Luxury real estate investor Trophaeum has secured global luxury group LVMH as a tenant in Milan, after news broke of the fashion giant launching a hotel adjacent to Trophaeum's Albermarle Street estate in London.
Following its recent acquisition on Via Saint Andrea, Milan, Trophaeum said it had signed an exclusive lease with LVMH for the circa 200 m2 of store space in Milan's Quadrilatero della Moda.
Trophaeum already owns the Celine flagship store on Via Montenapoleone and is understood to have amassed around a dozen assets in the Italian fashion capital in recent years, as part of European expansion plans.
'The store was signed at a record rent for the street, and within a very short time-frame after the deal had closed,' said Trophaeum's managing director. Matt Farrell. 'It shows the insatiable demand for luxury retail in Milan. Several competing offers were received.'
The successful deal comes after news broke that LVMH plans to open a Cheval Blanc hotel on Grafton Street in Mayfair, directly adjacent to Trophaeum’s Albemarle Street estate. The investor has successfully reached critical mass in this neighbourhood with a series of deals over the last decade, recently signing several luxury brands, restaurant and clubs including Isabel, Givenchy, Cartier and Thom Browne.
It is understood that LVMH will spend half a billion pounds redeveloping the building into a hotel, spa, restaurants and a flagship retail store, which is due to open in 2022.
The hotel is directly adjacent to Trophaeum’s 6 Grafton Street project where it signed operator Gleneagles for a new members club due to open in 2021.
Added Farrell: 'The news that LVMH have chosen to invest in this location is very much in line with our original vision for Albemarle Street to create an area directly adjacent to Bond Street which offers more ‘experiential’ destinations for luxury consumers. A best-in-class luxury hotel is the perfect complement to the luxury brands and restaurants we have brought to Albemarle Street over the last few years.'
