The flagship store of struggling retailer BHS has been sold.
The long leasehold of the property at 252/258 Oxford Street, W1, has been bought by Oxford & City Holdings for a price rumoured to be around £55m. The deal completed last night.
Oxford & City is also freeholder of the asset, which includes the London School of Fashion.
Polish retailer LPP, trading as Reserved, has agreed a pre-let on 106,000 sq ft across the ground, first and second floors of the building for its first UK flagship store.
The letting forms part of Oxford & City’s strategy for the block which will see outstanding lease renewals completed to secure long-term income.
David Kenningham of Kenningham Retail, which advised Oxford & City, said the new owners were “keen to move forward with a clear strategy for securing long-term occupation”.
He said that now the uncertainty over the future of the BHS lease had been resolved, a comprehensive occupation strategy could be put in place to enable retailers to refit their stores and “maximise trading from one of Oxford Street’s most prestigious positions”.
Kenningham added: “They are looking forward to welcoming the first store by LPP, one of Europe’s most dynamic retailers, who we are confident will have a major impact on the central London retail market and provide an excellent retail anchor in this location”
BHS, which last week won the backing of 95% of its creditors for a company voluntary arrangement allowing it to slash rents on more than half of its 164 stores, had more than 40 years remaining on its lease on Oxford Street.
BHS was sold by Sir Philip Green to a consortium led by former racing driver Dominic Chappell for £1 last year.
Cushman & Wakefield was instructed in November 2015 to explore a sale of BHS’s lease on its Oxford Street store. It had been valued at around £85m at that time.
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