After selling the Mandarin Oriental hotel to Italy's Gruppo Statuto for €205 million at the beginning of the year, Mandarin Oriental International Limited is now disposing of two luxury boutiques next door.
Located at 251 rue Saint-Honoré, the assets were acquired for €148 million by Lavender Propco SNC, a fund managed by Blackstone Europe, the hotel group said in a regulatory note published in Singapore.
Mandarin Oriental International Limited acquired the Mandarin Oriental and the adjacent retail units in 2013, before dividing them into separate assets. Currently leased to high-end fashion houses Versace and Ports 1961, they offer a total area of around 1,100 square metres.
The assets feature "rare double-height facades and recently renovated interiors", the American investor tells Business Immo, adding that "this is an excellent opportunity to invest in one of the most sought-after locations in Paris".
"We are thrilled to acquire these trophy retail assets in the heart of Paris’ premium shopping district," James Seppala, head of real estate Europe at Blackstone, told Business Immo. He added: "This transaction builds on Blackstone’s recent activity in the space, and our focus on prime assets in the best locations. Luxury retail has continued to show momentum and remains an attractive proposition for investors globally."
For the American giant, this transaction follows the acquisition in April of 130-134 New Bond Street, a London asset of about 9,300 square metres, for £230 million. It also follows the sale to Kering of Via Montenapoleone 8, for around €1.3 billion.
Welcoming the opportunity to own prime assets on "two of the most well-known shopping streets in the world – Rue Saint-Honoré and Bond Street", the American giant emphasizes that these "acquisitions also Blackstone’s highly selective approach when it comes to retail, focusing on prime locations, in segments of the markets that have proven more resilient to e-commerce."
Pointing out that the transaction is subject to the City of Paris' statutory right of pre-emption, among other conditions, Mandarin Oriental International Limited anticipates that the sale could be completed at the end of this month.