Belstaff, the British motorcycle-jacket maker that’s repositioning itself as a fashion brand, agreed to pay a record rent for a large store in London.
The company, owned by Caslano, Switzerland-based Labelux Group GmbH, will pay 3 million pounds ($4.7 million) in initial rent for a property on 135/137 New Bond Street, according to Savills Plc. The property broker advised the building’s owner, a private individual. The lease is for 20 years.
The rent for the 25,000 square-foot (2,323 square-meter) heritage-protected building equates to 840 pounds a square foot zone A, an industry measure for rental costs calculated by the most valuable storefront space. That exceeds the previous record of 670 pounds a foot zone A rent that Missoni, an Italian clothing company, agreed to pay for 138 New Bond Street in February 2011, according to Savills.
“The deal demonstrates the continued expansion northwards of the prime pitch on Bond Street,” said Anthony Selwyn, the director at Savills who acted for the landlord.
Rents on Bond Street and London’s other main shopping strips in the West End district are escalating as retailers compete for the best locations. The district avoided the last recession as the weak pound lifted tourism, while retailers reported a 3.1 percent increase in sales for last year compared with a 0.1 percent in U.K. retail sales.
Rental costs for large stores on the two shopping strips collectively known as Bond Street are still cheaper than for small units in the jewelry district. The highest zone A rent on Bond Street is the 965 pounds that jeweler Piaget, a unit of Cie. Financiere Richemont SA, agreed to pay in December 2009 for 169 Old Bond Street, a 3,500 square-foot shop.
Labelux is owned by the German Reimann family.