Luxury goods company Kering is set to pay a record rent for the UK, after agreeing a lease for Bond Street’s Yves Saint Laurent store.
Market sources told The Sunday Times that Kering will cough up £13m a year for the six-storey West London store, beating Ralph Lauren’s previous record of £11m.
The luxury group pipped competitors Richemont and LVMH, owned by Europe’s richest man, to the purchase.
Investment firm O&H Properties, the owner of the new YSL building, was advised on the deal by property agents from CBRE, according to The Sunday Times.
Plans are reportedly also in the works for a sale of a 150,000 sq ft Bond Street property nearby, which may be turned into a luxury hotel.
The deal comes as the luxury goods sector shrugs off cost of living concerns, which have less of an effect on their customers. Despite this, the industry has faced criticism for using record levels of inflation as an excuse to raise prices.
In January, data from the consulting firm Bain and Co revealed that spending in the luxury sector had grown by the same amount as the previous year, despite retail sales falling. In November, LVMH and Kering reported a 28 per cent and 14 per cent annual rise in sales respectively.
Kering was contacted for comment.