Kering, the parent company of luxury brand Saint Laurent, has recently secured a lease on a prime retail space on London’s famous Bond Street. What’s noteworthy about this deal is that Kering has agreed to pay a record-breaking rent for its UK store, despite the fact that many retailers have been able to negotiate more favorable rental terms due to the impact of the pandemic on the commercial real estate market.
Bond Street is well-known as a hub for luxury shopping, and over the past year, it has also seen a decrease in rental prices. However, this lease agreement showcases that certain locations with the right attributes can still demand premium prices. In fact, the previous record for the highest rent in the area was set in 2016 when Ralph Lauren signed a lease for £11 million.
Reports indicate that Kering will be paying over £13 million per year for the six-storey property situated at the corner of Bond Street and Grafton Street. Notably, Kering faced competition from luxury rivals LVMH and Richemont for this highly sought-after site. The building itself is owned by investment firm O&H Properties, which initially sought offers above £9 million per year.
This development highlights the sustained success of major luxury brands in the current market. Despite the end of VAT-free shopping and ongoing challenges, affluent tourists are returning to the UK, and wealthy locals are increasing their spending. This trend can also be observed in the Chelsea/Knightsbridge area, where plans for the refurbishment of Sloane Street are underway, and luxury brands are expanding their stores to meet the growing demand.
The lease agreement between Kering and O&H Properties not only solidifies Saint Laurent’s presence in the prestigious Bond Street shopping district but also reinforces the brand’s position as a leader in the luxury fashion industry. As the global economy begins to recover, this move exemplifies the resilience and confidence of high-end retailers. Ultimately, it sets a new benchmark for rental prices in this renowned shopping destination.
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