Meyer Bergman has acquired Bond Street House on London’s premier luxury shopping street for circa GBP110 million from a fund managed by BNP Paribas Real Estate Investment Management Germany.
Meyer Bergman acquired the 54,900 sqft property on New Bond Street for its second value-add fund, Meyer Bergman European Retail Partners II (MBERP II).
Watchmaker Patek Philippe, jeweller Georg Jenson and bespoke Italian tailor Kiton occupy units on the property’s ground and basement levels, while the upper floors are leased as offices. The building is located at the intersection of New and Old Bond Streets, where the flagship stores of Chanel, Dior, Hermes and LVMH are clustered.
Markus Meijer, Meyer Bergman’s chief executive, says: “Properties at this location are in great demand from investors and retailers because of the halo effect of these world-renowned brands. We are extremely pleased to be able to have secured Bond Street House in an off-market transaction. We continue to see a number of opportunities in the top retail destinations of Europe’s leading cities, where we target properties that require creative asset management to unlock their full potential.”
MBERP II has acquired a portfolio of city-centre properties located on some of Europe’s top shopping destinations. These include properties on the Champs-Elysées in Paris, Købmagergade in Copenhagen, and the Golden Mile in Madrid, the latter of which the fund subsequently sold to the owners of fashion retailer Mango. Its other assets enjoy a dominant position in their respective markets: the Whiteleys Shopping Centre in London’s Bayswater District and the Karstadt Department Store in Berlin’s Hermannplatz.
MBERP II has gained strong interest from global institutional investors as it approaches a final closing in June 2014. The fund expects to exceed its target capital raise of EUR500 million, excluding leverage.
Meyer Bergman was advised by Michael Elliott and Lunson Mitchenall on the commercial aspect of the transaction and Jones Day on the legal aspects. The property’s vendor was advised by BNP Paribas Real Estate in London.