Far Eastern investment in London’s prime West End shopping patch looks set to be quadruple that of 2012 after a Hong Kong-led purchase this week.
The consortium, which is understood to include the secretariet for economy and finance (Macau), Francis Tam, has exchanged contracts to buy the 14,000 sq ft 407-413 Oxford Street,W1, from Oxford LF for circa £57m – a 3% yield.
The latest deal will push Far Eastern money spent largely on Bond Street and Oxford Street in the year to date to more than £400m – four times higher than the £97m spent in 2012, according to Savills.
Over the past 12 months the Hong Kong consortium, advised by Michael Elliott, has been behind a number of prime retail buys, such as the £33m purchase of the Boodles building at 178 New Bond Street.
Tenants at the Oxford Street block include Swarovski and Watches of Switzerland.
Kieran Cotter, a partner at Morgan Williams, said Far Eastern buyers are being wooed by rental growth prospects.
He said: “Bond Street rents at £1,000 to £1,200 per sq ft look good value in comparison to some global counterparts. Rents on Oxford Street are also very competitive globally.”
All parties declined to comment.