United States private equity giant Blackstone is in talks to buy 130-134 New Bond Street, an office and retail block on London's most exclusive shopping street, from Canada's Oxford Properties and Swiss luxury goods group Richemont for about £230 million, CoStar News understands, in a deal that is likely to confirm the capital's investment market is firing on all cylinders once more.
A price of £230 million would represent a sub 4% yield.
The 27,657-square-foot block fronts New Bond Street and Grosvenor Street and is home to retailers Breitling, the luxury watch group, and Smythson, the stationery group. Office tenants include Newmark, APAM and Hilco.
Canadian multinational corporation and global investor Oxford bought the building in joint venture with Richemont for £197 million in 2014.
It is thought that Blackstone sees a rare opportunity to create a luxury flagship store on Bond Street.
A London investment expert, who declined to be quoted because of the sensitivity of the transaction, described it as the "banner one for the green shoots being seen" in the market.
"It is the signal the market has been waiting for in terms of price discovery and signs of clever players calling the bottom."
Investments on Bond Street have remained in demand throughout the downturn in transactional activity, but the identity of the buyer and the size of the transaction is already galvanising the market. Blackstone has been notably absent from both retail and London acquisitions in recent times.
Blackstone and Oxford Properties declined to comment. Brokerage JLL is advising Oxford Properties and Richemont and declined to comment.
Updated on 19 March to add the joint venture partner with Oxford and add what Blackstone might do with the property.