// Kering is set to pay a record rent for the UK, after agreeing to a lease for Bond Street’s Yves Saint Laurent store
// Kering will cough up £13m a year for the six-storey West London store, beating Ralph Lauren’s previous record of £11m
Gucci owner Kering has agreed to a lease for a new Yves Saint Laurent store on London’s Bond Street thought to set a record rent for the UK.
According to the Sunday Times, market sources said the luxury fashion group will pay £13 million-plus a year for the six-storey property on the corner of Grafton Street.
The owner of Bottega Venetta and Balenciaga beat off fierce competition from luxury rivals LVMH and Richemont for the site.
The rent surpasses the £11 million paid by Ralph Lauren for its Bond Street store, a record set back in 2016.
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The YSL deal underlines the health of the luxury goods industry, whose clientele have been largely unaffected by the cost-of-living crisis, enabling brands to hike prices under the cover of inflation.
London’s luxury retailers are also benefiting from the return of Chinese tourists after Beijing lifted a ban on international travel.
YSL’s new building is owned by the investment firm jointly held by the families of property investors David Gabbay and Eli Shahmoon – O&H Properties.
The landlord, which was seeking offers in excess of £9 million a year, was advised on the deal by property agents from CBRE.
Separately, O&H is also preparing to market a nearby 150,000sq ft building, just off Bond Street, that has been granted planning permission to be converted into a luxury hotel.
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