The Swatch Group has completed the acquisition of 32-33 Old Bond Street, the home of Gucci and Yves Saint Laurent on the famous retail thoroughfare, for £103.5 million.
The Swiss luxury watches and jewellery retailer is understood to have paid a price that reflects a net initial yield of 3.15% to Kering, the French conglomerate which owns luxury fashion houses including Gucci and Yves Saint Laurent. The building was bought as the former's head office in 2001. Gucci occupies the offices element and Yves Saint Laurent the retail.
Wilson McHardy advised Kering while Michael Elliott advised The Swatch Group.
The watch company can potentially occupy it in five years but it is unclear whether that will happen.
Despite a wider slowdown in transactions, Bond Street retains its appeal as one of the West End’s most prestigious addresses particularly in the private investor market.
CoStar News reported in November on how a number of rare opportunities to buy on Bond Street had come to market at sub-3% yields.
It also underlines a trend for retailers to buy blocks they intend to occupy as flagships.
React News reported this week that luxury Swiss watch company Richard Mille has agreed terms to buy Standbrook House, the company’s flagship store at 2-5 Old Bond Street. It has agreed to pay circa £170 million, a net initial yield of 3.25%.
CoStar News revealed last month that luxury designer shoes group Manolo Blahnik has bought 31 Old Burlington Street in London's prime Mayfair district for £35 million.