LVMH to purchase USD 500 million worth retail space in London
Real estate sources indicate that LVMH, world’s largest luxury group is considering acquiring three prime retail locations on London’s prominent luxury shopping street, New Bond Street. The three retail spaces include LVMH’s Louis Vuitton flagship store at 17-20 New Bond Street, plus two other stores currently occupied by American leatherwear company Coach and luxury stationer Smythson, the source, who is familiar with the matter, told Reuters.
The stores on New Bond Street are being sold at a price tag of US$ 500 million by Ireland’s National Asset Management Agency (NAMA). The Irish state-run "bad bank" seized control of the shops in June after former owner, Irish developer David Daly, failed to meet a debt repayment deadline.
Property yields on London’s top shopping streets have tumbled to record lows in the past year on the back of strong demand from investors seeking safe havens for their cash. Bond Street is the UK’s most expensive street for retail rents and took second place in a 2011 Cushman and Wakefield survey of Europe’s priciest shopping streets.
The Cartier store at 40-41 Old Bond Street was sold for 18 million pounds in July, reflecting a yield of 2.8 percent. A Rolex store under the luxury residential block One Hyde Park, a development managed by Candy & Candy, was sold for 13 million pounds in August, reflecting a 2.91 percent yield.