Hines, the global real estate investment, development, and property manager, has secured an agreement with Abercrombie & Fitch which will see the fashion retailer open a new European store at 325 Oxford Street, in the heart of London’s West End.
Abercrombie & Fitch has agreed on a multi-year lease on the entire retail space, which covers two floors in the mixed-use retail and office building, which was acquired on behalf of the Hines European Value Fund 2 (HEVF 2) in March 2020.
Positioned at the super-prime location on the corner of Oxford Street and Bond Street, Abercrombie & Fitch will have an unparalleled shop window on the busiest shopping street in London, with prime double height frontage across the ground and first floor of the building. The retailer expects to move in and commence trading in early 2025.
The arrival of Abercrombie & Fitch signals a further boost to Oxford Street, which is currently undergoing a £90 million investment programme to introduce improvements including wider pavements, seating areas and landscaping. A recent report commissioned by the New West End Company revealed that the revival of Oxford Street is forecasted to deliver a £2.8 billion boost to the West End economy over the next decade.
In addition to retail, the 325 Oxford Street building incorporates 31,000 sq ft of newly developed prime office space, designed by the award-winning Orms Architects. Established as “The Burlian” and arranged over the second to seventh floors of the building, it has been completed following a major refurbishment and extension and is now fully let to a range of occupiers.
Hines’ sustainable approach to the scheme’s regeneration has resulted in a 75% retention of the property’s existing structure. The scheme has secured an EPC ‘A’ rating and is aiming to achieve BREEAM ‘Excellent’ and SmartScore ‘Platinum’ accreditations, it is expected to outperform the embodied carbon of a typical new-build development by 30%.
The investment exemplifies Hines’ approach to real estate, focusing on high-quality properties and maximizing value through the firm’s vertically integrated platform, both at the portfolio and asset level.
Located in London together with the headquarters of Hines Europe at Grainhouse in Covent Garden, which is owned by HEVF 2, Hines UK has an extensive portfolio through refurbishment, acquisitions, renovations and asset management across the office, retail, industrial and residential sectors. Hines also acts as a third-party asset manager on behalf of other investors and landlords.
Jake Walsh, Managing Director at Hines UK, said: “Securing such a high profile, iconic brand as Abercombie & Fitch is a real coup for Hines and represents a fabulous addition to Oxford Street retail offering. It is an exciting time for London’s most famous shopping street as it is redefining itself as a go-to retail, leisure and office destination and we are proud to be contributing to its dynamic evolution.”
Scott Clarke-Bryan, Managing Director, EMEA at Abercrombie & Fitch Co, said: “We see tremendous opportunities for Abercrombie & Fitch here in London and this prime location at the crossroads of Oxford and Bond Street will add to our growing presence in the UK market. We look forward to welcoming our customers into a new and elevated experience early next year in this iconic shopping destination.”
Hines were represented by Cushman & Wakefield and Savills.
