Shops on London's Oxford St for over £39m
THE SISK Group looks set to make a handsome profit on a newly redeveloped shopping enclave on London’s Oxford Street.
Sisk’s property investment and development division, Korine Property Partners, is seeking in excess of £39 million (€48.8m) for two retail stores at the Marble Arch end of Oxford Street (numbers 527 to 533). CBRE is handling the sale of the leasehold interest which has another 138 years to run. At £39 million, the investment would show an initial yield of 4 per cent.
Although Korine acquired the investment at the top of the market in 2006, its purchase and redevelopment costs are thought to have been no higher than £20 million (€25m). There is a fixed ground rent of £4,000 (€5,005) payable to Grosvenor estate.
The 1,231sq m (13,257sq ft) property was modernised to provide two stores with double height frontages. There is also planning consent for a new fourth floor, and an extension to the third floor of the adjoining Marriott Hotel above the building. Once completed the scheme will provide an additional 12 bedrooms.
One of the shops with a floor area of 641sq m (6,900sq ft) is let to the sports retailer Asics on a new 15-year lease at a rent of £660,000 (€826,000) per annum, reflecting a Zone A rate of £413 (€517) per sq ft. The trader has already agreed a fixed uplift in March, 2017, to £842,345 (€1.054m), pushing the Zone A figure to £527 (€659).
Premier fashions brand Evans has leased the adjoining 590sq m (6,350sq ft) of space on a new 15-year lease at a rent of £995,000 (€1.245m), or a Zone A rate of £378 (€473).
Ciaran McDonnell, MD of Korine Property Partners, said they had stripped out the existing premises and made structural modifications to the property in order to create two well configured stores with impressive modern double height retail frontages. “It is our belief – and our tenants would seem to agree – that we have constructed a world class retail scheme which will further enhance the retail environment in this part of Oxford Street.”