Overseas Property:Leading property developer David Daly has strengthened his London investment portfolio by acquiring a further retail building on New Bond Street.
After owning the Louis Vuitton building at 17/18 New Bond Street since 2004, Daly has now acquired the adjoining block to allow the French fashion group to create a major flagship store.
The second building at numbers 19 and 20 was bought from Dublin investor Ronan McNamee, who has been heavily involved in property since selling his 50 per cent stake in Cuisine de France in 1997.
Land registry records show that McNamee sold the Bond Street investment for over £60 million (€80.2 million).
The enlarged property is understood to be producing a yield of 3.5 per cent, suggesting an overall value of around £150 million (€200.5 million).
Louis Vuitton will be paying a rent of £5 million (€6.683 million) for 2,043sq m (22,000sq ft) at ground, basement and first floor levels when the two buildings are combined. The company is also renting office space on one of the upper floors.
The stylish new store is located along a stretch of New Bond Street much favoured by some of the top fashion houses.
Daly also owns 39/42 New Bond Street where Mulberry fashion and Smythsons stationery trade on the ground floor. The overhead office accommodation is mainly rented by fund managers. The building was bought in 2002 for £35 million.
Daly, who has enjoyed major success with his Dublin housebuilding firm, Albany Homes, also owns a major commercial investment portfolio in the city. It includes one of the finest buildings on Grafton Street, the River Island store, which was acquired last year from Arnotts for €115 million. The net initial yield is a mere 2.05 per cent.
