Meyer Bergman has bought the long-leasehold of 103 Mount Street, W1, for £81m – a 3% yield.
French luxury label Céline occupies the 7,000 sq ft shop on the ground floor, one of the largest retail frontages on the street, and the building includes around 24,000 sq ft of grade-A office space.
The purchase from Kajima Properties forms part of its wider creative asset management drive, where it aims to increase net asset value and rental growth.
Bought on behalf of its second fund, Meyer Bergman European Retail Partners II (MBERPII) , this acquisition means the fund is now fully committed, having invested all available equity from a year ago.
Meyer Bergman is preparing to launch a third fund, Meyer Bergman European Retail Partners III, of which it expects to have its first close before the year end.
Mount Street, where the freehold is owned by Grosvenor Estate, has been repositioned over the past 10 years from the opening of Marc Jacobs in 2006 to be an alternative location for designer brands which struggle to find space on West End hotspot Bond Street.
Other assets in the recently committed MBERPII include Bond Street House, W1, Whiteleys shopping centre in Bayswater, W2, and Waterstone’s London flagship store in Piccadilly, W1.
Meyer Bergman recently completed refurbishments of the Burlington Arcade, W1, which it owns in a joint venture with Thor Equities in its first fund, which it is expected to exit within the next five years.
Michael Elliot advised Meyer Bergman; DTZ acted on behalf of Kajima Properties.
