Hines, the global real estate investment, development and property manager, has secured an agreement with Abercrombie & Fitch which will see the fashion retailer anchor a landmark development on Oxford Street, the famous shopping thoroughfare in London's West End.
Abercrombie & Fitch has agreed on a multi-year lease on the entire retail space, which covers around 10,000 square feet across two floors in the mixed-use retail and office building at 325 Oxford Street.
The building was bought on behalf of the Hines European Value Fund 2 in March 2020.
Positioned on the corner of Oxford Street and Bond Street, Abercrombie & Fitch's store will include double height frontage across the ground and first floor of the building. The retailer expects to move in and commence trading in early 2025.
The arrival of Abercrombie & Fitch comes as Oxford Street, London's busiest shopping street, is undergoing a £90 million investment programme to introduce improvements including wider pavements, seating areas and landscaping. A recent report commissioned by the New West End Company revealed that the revival is forecasted to deliver a £2.8 billion boost to the West End economy over the next decade.
In addition to retail, the 325 Oxford Street building, formerly a flagship store for high street fashion retailer Next, incorporates 31,000 square feet of offices, designed by Orms Architects. Called as “The Burlian” and arranged over the second to seventh floors of the building, it has been completed following a major refurbishment and extension and is now fully let to a range of occupiers.
Hines says its sustainable approach to the scheme’s regeneration has resulted in a 75% retention of the property’s existing structure. The scheme has secured an EPC ‘A’ rating and is aiming to achieve BREEAM ‘Excellent’ and SmartScore ‘Platinum’ accreditations, it says it is expected to outperform the embodied carbon of a typical new-build development by 30%.
The headquarters of Hines Europe at Grainhouse in Covent Garden is also owned by HEVF 2, Hines UK has an portfolio across the office, retail, industrial and residential sectors. Hines also acts as a third-party asset manager on behalf of other investors and landlords.
Abercrombie & Fitch is an American fashion lifestyle brand founded in 1892 in New York City.
It started life in the West End on Burlington Gardens before moving to Regent Street and then Carnaby Street. It is retaining its 39 Carnaby Street store. The moves suggest an increasing focus on a mass market appeal.
Jake Walsh, managing director at Hines UK, said in a statement: “Securing such a high profile, iconic brand as Abercombie & Fitch is a real coup for Hines and represents a fabulous addition to Oxford Street retail offering. It is an exciting time for London’s most famous shopping street as it is redefining itself as a go-to retail, leisure and office destination and we are proud to be contributing to its dynamic evolution.”
Scott Clarke-Bryan, managing director, EMEA at Abercrombie & Fitch, said: “We see tremendous opportunities for Abercrombie & Fitch here in London and this prime location at the crossroads of Oxford and Bond Street will add to our growing presence in the UK market. We look forward to welcoming our customers into a new and elevated experience early next year in this iconic shopping destination.”
Hines was represented by Cushman & Wakefield and Savills. CBRE advised Abercrombie & Fitch.