Joseph Lau’s Chinese Estates has emerged as the frontrunner to buy the freehold of Zara’s new shop on the east end of Oxford Street for £183m – a 2.5% yield.
CBRE was instructed to market 61 Oxford Street, W1, last year on behalf of BA Pension Fund.
This would be the second purchase in less than a month for Chinese Estates, which recently acquired the Mayfair headquarters of private bank Kleinwort Benson at 14 St George Street, W1, for £121.7m.
Sitting on the corner of Oxford Street and Soho Street, the six-storey Allford Hall Monaghan Morris-designed block was bought by BA Pension Fund in 2009 for £18m and developed in partnership with Richard Leslie’s Dukelease Properties.
It includes a 35,000 sq ft flagship Zara, 14,000 sq ft of offices, and six flats, branded as 11 Soho Street.
Ahead of Crossrail opening in 2018, the eastern end of Oxford Street has seen a wave of investment.
Last year, Land Securities’ and Frogmore’s Oriana scheme, located opposite the new Zara at 26-48 Oxford Street, and anchored by a 149,000 sq ft Primark, was bought by Zara owner Amancio Ortega for £450m.
Developers including Derwent London, Great Portland Estates and Almacantar have also invested in the area.
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