Family office snaps up Oxford Street retail asset

20th May 2024 | Jack Oliver

Aspida Capital, a family office specialising in investment and asset management, has completed the acquisition of 105-109 Oxford Street in London for £18.5m in partnership with another family office.

The property is let to retail tenants Flying Tiger and Harmony on long-term leases, and produces a passing rent of £1,075,000 per annum. Both tenants had their rents rebased and leases extended during the Covid pandemic, however the property still provides early lease events and asset management opportunities.

There is also a planned review for a minimum rent increase in 2025 to £1.25m, which is likely to be higher based on rental tone.

The previous owner of the property, Thor Equities, acquired the building in in 2015 for £42m. At that time, the asset had a combined income of £1,127,580 per annum. By 2019, the property had an estimated rental value of £1,638,700, with a market value of over £50m.

Antony Antoniou, managing director of Aspida Capital, said: “Oxford Street is reclaiming its crown as the UK’s top retail destination. What started with the Elizabeth Line drawing increased footfall is now being cemented with the £1bn investment in the flagship retail stores for international brands. This acquisition represents a very attractive investment opportunity, with excellent scope for both rental and underlying asset value growth, over the short to medium term.

“We are currently seeing a narrowing of the gap between vendor expectation and investor appetite in the real estate sector. This has been driven by increasing pressure from banks for returns on their investments and the ‘higher for longer’ interest rate mantra from both sides of the Atlantic, underlining that any swift change in the market is unlikely.

“The current market conditions are ideal for family office investors, who are cash rich and ready to deploy that capital in quality assets. We are actively looking at a number of commercial investment opportunities in the Capital and beyond.”

Aspida Capital was represented by Cyril Leonard, whilst the vendors were represented by Tydus.


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