Central London Retail savills.co.uk/retail Shaping Retail. Contents The Team 3 The Savills Approach 4 London 6 Crossrail 7 Track Record: Oxford Street 8 Track Record: Bond Street 10 Track Record: Old Spitalfields Market 12 Case Study: Nike Women’s Store 13 Track Record: APM Monaco 14 Case Study: Itsu 15 Bond Street 17 Dover Street and Albemarle Street 19 Mount Street and South Audley Street 21 South Molton Street 23 Conduit Street and Bruton Street 25 Regent Street 27 Oxford Street East 29 Oxford Street West 31 Marylebone High Street 33 Covent Garden: Neal Street 35 Covent Garden: Long Acre 37 Covent Garden: Seven Dials 39 Soho 41 King’s Road 43 Kensington High Street 45 Knightsbridge 47 Sloane Street and Sloane Square 49 South Kensington 51 Westbourne Grove 53 Spitalfields 55 Westfield Stratford 57 Westfield London 59 One Stop Shop 60 The Team Agency Lease Consultancy Anthony Selwyn Laura Salisbury-Jones Alan Spencer [email protected] [email protected] [email protected] +44 (0) 20 7758 3880 +44 (0) 20 7409 8830 +44 (0) 20 7758 3876 Peter Thomas Tiffany Luckett Paul Endicott [email protected] [email protected] [email protected] +44 (0) 20 7734 3443 +44 (0) 20 7758 3878 +44 (0) 20 7758 3879 Sam Foyle Benjamin Ashe Kristian Kendall [email protected] [email protected] [email protected] +44 (0) 20 7409 8171 +44 (0) 20 7758 3889 +44 (0) 20 7758 3881 Sarah Goldman James Fairley Daniel Aboud [email protected] [email protected] [email protected] +44 (0) 20 7758 3875 +44 (0) 20 7758 3877 +44 (0) 20 7758 3895 Oliver Green Claire Lakie [email protected] [email protected] +44 (0) 20 7758 3899 +44 (0) 20 7758 3896 Lance Marton Research [email protected] +44 (0) 20 7758 3884 Marie Hickey [email protected] +44 (0) 20 3320 8288 For general enquiries: [email protected] 3 The Savills Approach Savills Central London Retail team is recognised as a market leader within the sector and we have extensive experience in Central London, leasing and asset management and Landlord & Tenant matters. We have unrivalled knowledge of brand requirements and new entrants to the Central London market, complimented by our in-depth knowledge and understanding of all types of retailers, from the luxury groups to the existing and established retailers. As such we are best placed to advise on your strategies with our unmatched knowledge of London’s key retail destinations from Oxford Street to Westfield London, where years of experience have given us a thoroughly deep knowledge of the retail and property industry. 4 FIRST LETTING AT £700, £800, £900, £1000 AND £1,100 ZONE A THE MOST 1ST ZONE A ACTIVE LETTING TO RETAIL INGLOT AT AGENCY IN £1,100 PSF THE LAST 18 MONTHS 5 London London attracts the best of the international brands due to the phenomenal amount of international visitors and overseas shoppers which make it a truly global destination. It is key for an international brand to have a strong presence in London, fundamentally due to its size and position on the global retail stage. The London Way to Success Access to Shopping hotspots Creative fashion Test the customers with identity capital global market In 2015 London saw 31.5 million London is known for its retail Voted the global fashion capital of London is a great stepping stone to visitors. In the same year these destinations, which are dotted the world for two years running, global expansion. Brands such as visitors boosted the economy by around the capital. London benefits London is home to the world’s top Rag & Bone and Nike’s first women’s £15 billion, thus spending more from the fact that landlords often fashion and design schools. only store, have opened their first on retail, restaurants, hotels and own large areas of the city, which stores here outside of the USA. attractions than ever before. enables them to create the perfect It is the ideal place to be for recruiting environment for retailers, similar to top design talent, with London These stores trade better than The city is a tourist magnet, with the way in which landlords create Fashion Week, held in February and anywhere else in the world in some some of the world’s most famous specific retail environments in September, generating estimated cases. For example, Victoria’s Secret shopping streets. shopping centres. annual sales of more than £100m. Bond Street store is its highest turnover store in the world. In addition, by creating your brand Streets such as Oxford Street and presence here in the UK, you will Regent Street, or areas such as create an online market presence Spitalfields and Covent Garden have which can tap into a share of the a true identity, which keeps shoppers £114 billion spent online each year returning for more. by UK customers. London has a population of 8.3 million, who have an average gross disposable income of £1,787 per month. 6 Crossrail will bring 30% 200m passenger journeys will be more people to the West End made on Crossrail every year – and this will increase spend by increasing London’s rail capacity £1.5bn per year by a tenth Crossrail More than 155,000 passengers already use the Bond Street Demand at Tottenham Court Road station daily. Passenger numbers Station is expected are expected to increase to to increase by at least 30% 225,000 in 2018 7 Track Record: Oxford Street Our dedicated Central London Retail Team, including investment, agency and landlord and tenant specialists, have enjoyed the greatest market share of all Oxford Street transactions in recent years. Savills have acted on behalf of the landlord on each occasion that a new benchmark has been established on Oxford Street, agreeing the first £700, £800, £900, £1,000 Zone A and most recently £1,100. In 2015 the team secured the previous record rent for Oxford Street on behalf of the same owner with a letting to Swatch Group Ltd at over £1,000 Zone A. In the last 3 years we have successfully transformed the profile of this parade and significantly enhanced the value of our clients investment. This will be further bolstered by the next opportunity at 411-413 Oxford Street which we have recently launched. Other recent deals include Tesla, Curry’s, Swatch and a second store for JD Sports on the former Toy Store at 375-381 Oxford Street. Recent rent review instructions include Adidas, H&M, HMV, Forever 21 and Swarovski to the West of Oxford Circus, and Russell & Bromley, Bershka, Urban Outfitters, Schuh, H&M, HSBC, Moss Bros and O2 to the East. 8 Oxford Street – Inglot, 409 Oxford Street: On behalf of a Hong Kong based investor the Central London Retail team identified that there was a strong requirement from a number of cosmetics brands seeking a presence on Oxford Street. Having negotiated a surrender with Camper, we received several bids for the unit eventually agreeing a deal with Polish cosmetics retailer Inglot, at £1,113 Zone A. This set a new record rent for Oxford Street. It will be Inglot’s first Central London flagship store following successful openings at Westfield London and Westfield Stratford City. 9 Track Record: Bond Street Our dedicated Central London Retail Team, including investment, agency and landlord and tenant specialists, have enjoyed a significant market share of Bond Street transactions in recent years. Noteworthy deals include: • 21-23 New Bond Street – Cola Holdings - Savills Central Retail London team have acted for Cola Holdings on their flagship Westbury Hotel building for over 10 years. In 2015 we acted on behalf of Cola Holdings agreeing a rent review increase on the Burberry flagship retail unit from £3,150,000 to £5,200,000. Earlier this year we concluded a letting to Maiyet for a 30,000 sq ft unit on Conduit Street. We are currently working on proposals to further enhance our clients investment value of the asset. • 47-52 New Bond Street - Purchase for Oxford Properties/ Richemont having acted for the previous owner where we concluded a re-gear on the Emporio Armani at £1,000 ZA. • 98 New Bond Street – Letting to Philipp Plein bringing this iconic new brand to the most Northern section of Bond Street whilst achieving a record Zone A rate. Our lease consultancy team have a similarly strong track record, having negotiated several high profile reviews and renewals over the last few years. Recent instructions include several flagship stores such as Dolce & Gabana, Daks, Burberry, Salvatore Ferragamo, Mulberry and Victoria’s Secret. 10 130-137 New Bond Street On behalf of a private investor the Central London Retail and Investment Teams sold 130-137 New Bond Street to a joint venture between Oxford Properties and Richemont for over £300 million, representing a net initial yield of circa 2.5%. 11 Track Record: Old Spitalfields Market Tribeca Holding purchased Old Spitalfields Market in 2013 and since 2014 Savills have been instructed to help re-establish the whole scheme and reform it to its former glory, as one of London’s top shopping destinations. There are 48 units in the scheme and since being appointed, we have done 25 deals across the scheme. Some of the notable tenants we have signed to the scheme to date include: We have also been involved in the repositioning of the market space, providing the client with comprehensive advice about potential occupiers and possible schemes and place making initiatives which could improve the internal market. 12 Case Study: Nike Women’s Store On behalf of our key estate client Martin’s Properties, the Central London team identified a strong requirement for larger unit sizes in the prime pitch of the King’s Road.