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Gucci makes a big move in London, swapping old bonds for new bond lines – WWD

LONDON – New Bond Street in Mayfair, one of the most expensive shopping districts in the world, is about to welcome another luxury megalopolis to a growing lineup that includes Louis Vuitton, Chanel, Celine, Versace, Loewe and Balenciaga.

WWD learned that Gucci will move from its perennial corner location on Old Bond Street to 144-146 New Bond Street. Gucci will move into a 16,000 square foot space and expect to own the property in the fall of 2022.

Trophaeum Asset Management, which owns most of Albemarle Street, other properties on New Bond Street, and some prime spaces around London, purchased the retail space in February 2020 from a company controlled by banker Joseph Safra.

The Trophaeum paid £130 million for the building, which now houses the Halcyon Gallery on the ground floor.

At the time, Matt Farrell, managing director at Trophaeum, said “the site has great potential for a future fashion house.” He added that Trophaeum is “very keen to acquire the building, despite the Brexit-related chaos,” and has made its move in response to growing investor demand.

Trophaeum declined to comment for this story. Gucci could not be reached for comment.

Gucci’s plans to move from Old Bond to New Bond signal a larger shift is underway in the historic, half-mile-long shopping street and link Piccadilly with Oxford Street.

Celine Store

Celine’s new store on New Bond Street in London.
Manu Valcarce for WWD

Megabrands are migrating north to New Bond as major luxury conglomerates and real estate firms, occupying the property at the end of New Bond’s Oxford Street, was in what was in previous years a retail precinct with a some big fashion brands. These people tend to congregate south of Brook Street.

Trophaeum competed for properties alongside Kering, LVMH Mot Hennessy Louis Vuitton, Compagnie Financière Richemont, Christina Ong – and a host of other brands and high net worth investors – on the street.

In 2019, New Bond Street ranked as the most expensive shopping street in Europe and the third most expensive worldwide, behind Hong Kong’s Causeway Bay and the elevated 5th Avenue in Manhattan in Cushman & Wakefield’s annual survey of shopping streets.

At the time, Cushman & Wakefield said the rent for the new Bond was $1,714 a square foot a year in the second quarter of 2019. Cushman hasn’t conducted an annual procurement survey since the COVID-19 crisis. and landlords are tight-lipped about current street rents.

As reported, LVMH has been sliding its brands like chess pieces into key positions on New Bond, with Celine being the latest name to move in.

Last month Celine opens the door to approach the brand LVMH compatriot Loewe, is located at 41-42 New Bond Street, and its posh neighbors include Ermenegildo Zegna, Alaïa, Smythson, Chloé, Ralph Lauren and Delvaux.

The Celine attribute belongs to LVMH and previously had a Louis Vuitton store. A few minutes walk to the Vuitton brand, reopening in 2019 after a major refurbishment supervised by Peter Marino.

Owned by Kering Balenciaga is preparing to move into its existing Russell & Bromley shoe store space on the corner of New Bond and Conduit Streets.

This early year, Chanel bought its flagship at 159 New Bond Street for a reported £310 million from Swedish pension fund SEB. According to press reports at the time, SEB was initially asking for offers of around £240 million.

Canali is located at 64 New Bond Street near Brook Street, and located in the corner of a new mixed-use development, overseen by Great Portland Estates. It will go hand-in-hand with non-retail businesses including Glencore and KKR, which have reserved 111,100 square feet of office space for their respective European headquarters.

Despite the lack of international travel and shop closures due to COVID-19, New Bond Street remains a popular spot.

“Investor confidence in” Link The streets are not waning and we expect to see [New Bond] Anthony Selwyn, Savills co-head of global retail, said in a report published in September.

Selwyn said the launch of Crossrail in early 2022 and the opening of the Mandarin Oriental hotel in Hanover Square “is expected to have a huge impact on tourist arrivals” in the area.

Celine Store

Celine’s new store on New Bond Street in London.
Manuel Valcarce for WWD

The new Crossrail Underground network will run 42 miles east-west through London, with a stop on Davies Street, near New Bond. The Crossrail begins around Heathrow and runs east to Essex, promising to bring millions of international passengers, visitors and holidaymakers (when they can return to Britain in effect) into central London.

Gucci made a big move in London,

The new Canali store on the corner of New Bond Street and Brook Street in London.
Courtesy of Canali / Carolina Mizrahi

In its report, Savills said that investor appetite for Bond Street overall remained “strong,” with the underlying yield holding at pre-pandemic levels of 2.75%. Those yields are much higher than key streets in the West End, which have been falling since the pandemic.

Overall, Bond Street accounts for more than half of all retail investment in central London in the first half of 2021, Savills added.

Money has poured into the wider area: In early October, the New West End Company, which represents 600 businesses in and around Oxford, Regent and Bond streets, revealed there would be £5 billion in capital investments in London’s West End on 22 , and new developments.

The funding will help the region emerge from the pandemic by diversifying services to include more multi-purpose spaces, experiential shopping and public areas, the grant said.

While Old Bond Street still has its share of fashion brands – including Prada, Alexander McQueen, Dolce & Gabbana, and Stella McCartney – it is also home to many high-end watch and jewelry brands such as Cartier, Rolex, De Beers, Vacheron Constantin, Boucheron and Damiani, attracting a diverse clientele from fashion brands.

Gucci made a big move in London,

Chanel store on New Bond Street in London.
Tim Jenkins

Indeed, there is a difference between splashing out tens of thousands of pounds for a Vacheron Constantin watch and a few thousand pounds for a watch. Louis Vuitton the bag.

Although Trophaeum declined to comment, it is clear that the company is looking to replicate what it has done on New Bond. Albemarle Street, fills the road with luxury brands and turns it into a fashion and accessories paradise.

Trophaeum has added more than 25 new properties to Albemarle over the past 5 years, including Self-Portrait, Thom Browne, and Aquazzura.

During the pandemic, the company has moved into a host of new businesses, including the London outpost of the sushi restaurant Le Bar des Prés in Paris; La Loma, a Peruvian concept created by club king Robin Birley, and the new members’ club on the corner of Albemarle and Grafton streets called Maison Estelle.

Trophaeum began purchasing New Bond Street properties in 2015 with the idea of ​​turning the area running from the corner of Bruton Street to the corner of Grosvenor Street into a European fashion and accessory hotspot. It changed Chloé to the number 143, and Alaïa at 139 New Bond Street.

Gucci is arguably Trophaeum’s hottest property on New Bond to date, and its neighbors will include Balenciaga, Jimmy Choo, Miu Miu and Fendi.

Trophaeum also owns other properties around London, notably on St. John’s Wood high street, for which it was revived. It has also brought its luxury proposition to Italy: In the fall, the Trophaeum opened its first Christian Louboutin boutique in Milan’s Golden Triangle.

Gucci has dominated the space on the corner of Old Bond and Stafford Streets for more than 20 years. In 2011, the 7,370 square foot store was refurbished as Frida Giannini took over as the brand’s creative leader.

https://wwd.com/business-news/real-estate/gucci-makes-big-london-move-swapping-old-bond-new-bond-street-1235010787/ Gucci makes a big move in London, swapping old bonds for new bond lines – WWD

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