Fashion powerhouse Chanel has signed for a new London office home at 38 Berkeley Square in a move first revealed by CoStar News.
Chanel said the move signals the company’s long-term commitment to the UK, having signed a tenancy agreement for a new building for the next 20 years, with the possibility to extend to 30 years.
It added that the investment demonstrates Chanel’s intention to continue to "grow its global community in one of the most creative, international, and diverse cities in the world".
The company's global headquarters have been in London since 2018, and the office will more than double its space. It is taking all 86,000 square feet of 38 Berkeley Square across eleven floors with 7,500 square feet of terraces.
It said the new building has been designed to the highest standards of sustainability and accessibility by architect Piercy and Co.
Chanel added: "Under the leadership of Chanel’s Global CEO, who is based in London, the new headquarters will continue to be a hub for global governance and will house all the global corporate teams as well as Fondation Chanel."
Chanel’s global headcount grew 12% in 2022 to over 32,000 people and is projected to increase by another 5,000 in 2023. It said it expects to transition teams to 38 Berkeley Square by the end of 2025.
Leena Nair, Global CEO at Chanel, said in a statement: “London has been an important centre for Chanel for many years and today’s announcement reaffirms our commitment to the UK and to our people.
"This new global headquarters has been designed to be at the forefront of sustainability, and an inclusive and beautiful working space, supporting Chanel’s future growth ambitions.”
A source at Beam said: "We are delighted to welcome Chanel to 38 Berkeley Square, the most sustainable and newest building to be delivered on Berkeley Square in 20 years."
On completion, 38 Berkeley Square will be the tallest cross laminated timber commercial office to be delivered in London and is the first new-build on the Mayfair square in two decades.
Chanel, which is owned by the billionaire brothers Alain and Gérard Wertheimer, is based also in 30,000 square feet at 1 Bruton Street, known as the Time & Life Building, on a lease expiring in 2027, according to CoStar data.
Both buildings are owned by a Middle Eastern investor advised by Berkeley Estate Asset Management.
Founded in Paris in 1910 by Coco Chanel, the privately held firm reported full-year revenue of $15.6 billion in 2021, up 49.6% from the year-earlier period as sales reached record highs across all product categories despite the COVID pandemic.
Bluebook and RX London are leasing agents at 38 Berkeley Square.