A trophy building on London's New Bond Street is set to sell for around £71 million or a sub-3% net initial yield, with Dyson, the household appliances retail and engineering group, being linked to the purchase.
Market sources said a private investor has exchanged to buy 126-127 New Bond Street, as London's most exclusive shopping address continues to generate huge investor appetite. A number of independent market sources who declined to speak on the record said Dyson, famed for its strikingly designed vacuum cleaners, is the likely buyer.
Market sources said Michael Elliott has been advising the private Hong Kong owner on the sale of the building.
The 12,900 square feet retail block changed hands in 2013 for £44.1 million, at which time it was the flagship UK retail outlet of the upmarket Italian menswear boutique, Canali.
Last year Swaine, one of the UK’s oldest luxury goods brands, founded in 1750 and formerly known as Swaine Adeney Brigg, opened a 7,000 square feet flagship store at the building “as the centrepiece of its most radical rebrand in 273 years”.
Founded in 1991 by James Dyson in Malmesbury, Wiltshire, Dyson designs and manufactures household appliances including vacuum cleaners, hair dryers and air purifiers. As of 2022, Dyson has more than 14,000 employees worldwide.
Investments on Bond Street have remained in high demand throughout a wider downturn in transactional activity, driven by the continued desire of the world's most famous luxury brands to have an address there.
A critical factor in recent years has been luxury retailers buying their own buildings on Bond Street, forcing other brands to look further afield. Examples include Richemont buying 50 New Bond Street with Oxford Properties, while Louis Vuitton, Chanel, Prada and Sotheby's have all bought assets on the street.
Last month, Swiss luxury goods group Richemont exchanged to buy British jewellery retailer Boodles' flagship store at 178 New Bond Street for £82 million, or a 2.2% net initial yield.
That was a speedy re-investment on Bond Street by Richemont which sold 130-134 New Bond Street to Blackstone for £227 million earlier this year alongside its investment partner Oxford Properties.
Michael Elliott declined to comment. Dyson did not respond to a request for comment.