Hermes Buys into 155 King Street
Luxury retailer, Hermes has acquired a 4 level retail strata at 155 King Street Sydney for $105m for its new flagship store. The space includes the lower ground floor, lower mezzanine, ground floor and mezzanine levels and comprise approx 1,472sqm
The strata was owned by a private investor with a debt arrangement in place with Qualitas to assist the re-positioning of the retail area. The owner introduced Hermes as a tenant, however the negotiations progressed to them acquiring the strata interest for themselves.
Qualitas managing director Andrew Schwartz said, ‘‘We liked the property from the start and felt we could materially assist the owner achieve their objectives by stabilising the capital structure and agreeing an appropriate development and business plan for the property’’.
The Hermes deal equates to a capital value of $71,331/sqm.
The luxury retail market is thriving in Sydney with stores competing for prime street front space pushing up rents and values. Nearby at 62 Castlereagh Street, Deka Immobilien acquired in December 2018 a 950sqm strata space occupied by Bvlgari, paying $58M ($61,000/sqm).