Chanel Bond Street store for sale, will be test of West End retail property market
The strength of the London retail property market will be tested as the flagship Chanel store on Bond Street is being prepared for sale. The street has traditionally been one of the most expensive retail destinations globally but that was pre-pandemic and investor confidence in the future of London’s West End and its luxury retail sector will be seen by the outcome of the sale.
The Times reported that the property is currently owned by a Swedish pension fund that has appointed advisory company JLL “to seek offers of more than £240 million” for the three-storey retail space.
Sales volumes of West End retail properties have plunged since the health crisis began as the tourists and office workers on which the area depends have been absent. Only this week, Springboard said footfall to Central London is still down more than 60% year-on-year.
But West End property deals are still happening with Balenciaga agreeing a New Bond Street lease in June and Brunello Cucinelli having opened on the street at almost the same time. Celine and Versace have also taken Bond Street space.
There has been speculation that Chanel could buy the property itself, the newspaper reported, echoing Prada that also owns its Bond Street store. A raft of private international buyers could also show an interest.
Bond Street’s appeal to property investors rests in the fact that it had the third highest rental rates in the world as of 2019. The proliferation of luxury labels have made its rents more reliable than those in nearby Oxford Street.
Chanel’s boutique was the brand’s largest globally when it opened in 2013, although the NYC shop that opened since then is larger.
Copyright © 2020 FashionNetwork.com All rights reserved.