Luxury brands play the long game as they buy Bond Street buildings

News last week that Swatch Group has invested many millions in buying the Bond Street store occupied by its Harry Winston brand is part of a wider trend among luxury firms, a new report has shown.

The report, for CBRE and seen by The Times, says the number of buildings on London’s New Bond Street owned by big fashion houses has doubled in 15 years.

It means a third of the street is now owned by retailers, compared to 15% in 2009.

CBRE property agent Phil Cann said it’s an “own-to-occupy” strategy strategy in which big brands buy the freeholds of buildings they occupy, or buy those of other buildings and wait patiently for them to become vacant as leases expire.

Sometimes those purchases are of huge spaces, which is unsurprising given the current trend of big names upsizing that we’re seeing on key thoroughfares, such as Bond Street in the West End and Sloane Street in Knightsbridge. 

The report cited the example of the Asprey store that was bought by Hermès. Cann told the newspaper: “It’s taken them a decade to get the store back, which Hermès is now fitting out. That’s how long they will hold these buildings if they’re the right buildings in the right locations.”

Last year LVMH paid paid £165 million for the Dior store at 160-162 New Bond Street, and Rolex paid £160 million for Bond Street House, occupied by Patek Philippe. Chanel also bought its New Bond Street store from its landlord for £310 million during the pandemic.

It’s particularly interesting as well as that properties further up New Bond Street are proving popular whereas the end closer to Piccadilly was previously seen as most in demand. The opening of the Elizabeth Line transport link and the availability of large spaces further up the street have changed that. It will therefore be very interesting to see what happens to the Fenwick department store building when that becomes vacant next year.