24 OLD BOND STREET ACQUIRED BY UNITY RE
One of the most iconic flagships on London’s exclusive shopping street changed hands this month.
24 Old Bond Street has been acquired by Unity Re the investment vehicle of the Maramotti family, owners of Max Mara Fashion Group brands, for £141 million.
Serving as Salvatore Ferragamo’s London flagship store since 1967, the 14,000 sq ft building occupies a prominent corner site with Burlington Gardens. The ornate Grade II listed Gothic Revival style building with its characteristic spire bell tower, is one of the most iconic properties on Bond Street. The building will be a key beneficiary of the Bond Street public realm project and the focal point of the transformed Jewellery Quarter Piazza, with works due to complete in February 2018.
The building was acquired by NFU Mutual in the early 90s and has been consistently at the forefront of rental growth throughout their ownership. NFU Mutual appointed CBRE and Chapman Petrie to approach a shortlist of investors on the sale which attracted multiple bids from around the world.
Tom Bostock, Fund Manager at NFU Mutual said “We are delighted with the sale of 24 Old Bond Street. The asset has performed exceptionally well for the Fund over many years and having recently completed the rent review we felt the time was right to exit and redeploy funds elsewhere. We continue to hold prime London retail assets and remain confident in the market outlook.”
The sale confirms the continued lure of Bond Street for global investors. Robust occupational activity along with the significant boost expected from the Bond Street Public Realm project and Crossrail are driving confidence in the market. We expect further investment activity in 2018, although with the ownership profile dominated by those holding for the long term, opportunities to buy prime assets are becoming increasingly rare.
The purchase price of £141 Million reflects a yield of 2.46%. Salvatore Ferragamo represent 85% of the total income with approximately 15 years unexpired, with the upper parts occupied by multi-let offices.
NFU Mutual was represented by CBRE and Chapman Petrie. Unity Re was represented by Hall Lahaise.