A private Middle Eastern client of Knight Frank, understood to be from Saudi Arabia, has paid more than £22m – a record 1.7% yield – for the Rolex store at the base of Candy & Candy’s One Hyde Park in Knightsbridge, SW1.
It is the first time yields have dipped below 2% in the area.
The previous Knightsbridge record was set the last time the 2,781 sq ft Rolex shop traded in 2011, with Russian businessman Grigory Guselnikov paying £13m, reflecting a 2.9% yield.
While yields have hardened to around 2% on Bond Street, the latest Middle Eastern purchase shows that the capital’s prime retail patch is expanding.
A recent Savills report highlighted the growth of the luxury quarter to areas including South Audley Street, Cork Street and Dover Street.
Jonathan O’Regan, central London director at Savills, said: “With the expectation of rising rents across all the major luxury streets in London, investors are not shy when it comes to low initial yields.”
He added: “In Knightsbridge, due to large estate ownerships, it is extremely rare for retail assets to hit the market.”
Let to DM London (trading as Rolex) until February 2026, the new landlord at 100 Knightsbridge has scope for major rental growth at a review next year.
There is currently a low passing rent of £303 per sq ft, but this could rise to be more in line with neighbouring areas such as Sloane Street, where deals at £780 per sq ft zone A have been agreed.
Nightingale Partners advised the vendor.