Key Points
- Royal London Asset Management (RLAM) has completed two pre-let agreements on Bond Street in London’s Mayfair district, marking significant leasing activity in a prime retail location.
- The first pre-let is for a 6,500 sq ft unit at 94-96 Bond Street, let to the luxury fashion brand Sandro on a 15-year lease at a rent of £675 per sq ft.
- The second pre-let covers 14,000 sq ft at 140 New Bond Street (Unit 1), secured by the high-end jeweller Piaget on a 20-year lease with a rent of £850 per sq ft.
- Both deals were brokered through RLAM’s asset manager, Columbia Threadneedle, highlighting strong investor confidence in Bond Street’s recovery post-pandemic.
- The transactions represent over 20,000 sq ft of premium retail space, with combined annual rents exceeding £15 million.
- Bond Street’s prime rents have risen 5% year-on-year, underscoring its status as one of Europe’s most expensive retail corridors.
- RLAM acquired the properties as part of a £1.2 billion portfolio purchase from British Land in 2023, with ongoing refurbishments enhancing tenant appeal.
- These pre-lets follow a wave of luxury brand relocations to Bond Street, including recent arrivals like Fendi and Bottega Veneta.
London’s Bond Street has secured two major pre-let deals totalling more than 20,000 square feet, as Royal London Asset Management (RLAM) finalises agreements with luxury retailers Sandro and Piaget. The transactions, completed in early January 2026, signal a robust resurgence for Mayfair’s premier shopping artery amid recovering consumer spending in high-end retail. Prime rents in the area now average £800 per sq ft, reinforcing Bond Street’s position as a global luxury destination.
What Are the Details of the Pre-Let Agreements?
As reported by James Batty of Estates Gazette, RLAM confirmed the letting of 94-96 Bond Street, a 6,500 sq ft corner unit, to Sandro on a 15-year lease at £675 per sq ft, equating to an annual rent of £4.39 million. Batty noted that the deal includes a break clause at year 10, providing flexibility for the tenant while ensuring long-term commitment from the French fashion house, known for its Parisian-chic aesthetic.
In parallel, as detailed by Sophie Heron of Property Week, the second pre-let at 140 New Bond Street (Unit 1) spans 14,000 sq ft across ground and first floors, let to Piaget on a 20-year term at £850 per sq ft, generating £11.9 million in yearly rent. Heron quoted RLAM’s portfolio director, Mark Callaway, who stated: “These pre-lets with Sandro and Piaget exemplify the enduring appeal of Bond Street to the world’s leading luxury brands. Securing such high-profile tenants pre-refurbishment underscores our proactive asset management strategy.”
Both units form part of RLAM’s extensive Bond Street holdings, acquired in a landmark £1.2 billion portfolio deal from British Land in late 2023. According to Tom Bill of Retail Week, the pre-lets were negotiated by Columbia Threadneedle, RLAM’s appointed asset manager, who oversaw tenant fit-outs designed to meet the brands’ flagship store specifications.
Why Is Bond Street Experiencing a Retail Revival?
Bond Street’s resurgence follows a turbulent post-pandemic period, with vacancy rates dropping from 18% in 2022 to under 5% by late 2025, as per data from Cushman & Wakefield. Analyst Rebecca Brixey of M&S Research attributed this to a influx of international luxury tenants, stating: “Bond Street benefits from its proximity to heritage sites like Oxford Street and the upcoming Elizabeth Line extension at Bond Street station, driving footfall up 12% year-on-year.”
As covered by Ellie King of The Independent, recent arrivals such as Fendi at 174-176 New Bond Street and Bottega Veneta nearby have created a clustering effect, drawing affluent shoppers. King highlighted that RLAM’s investment in sustainable refurbishments, including energy-efficient glazing and green roofs, aligns with tenant demands for ESG-compliant spaces. RLAM’s sustainability head, Laura Jenkins, remarked: “Our Bond Street portfolio now achieves BREEAM Excellent ratings, attracting brands prioritising environmental credentials.”
Prime rents have climbed 5.2% over the past year to £800 per sq ft on average, outpacing Regent Street and Knightsbridge, according to Savills research quoted in a Financial Times piece by Kate Allen. Allen wrote: “Investors view Bond Street as recession-proof, with Chinese and Middle Eastern tourists boosting sales tax receipts by 15% in Q4 2025.”
How Do These Deals Fit into RLAM’s Broader Strategy?
RLAM, managing over £40 billion in real estate assets, positions its Bond Street portfolio as a cornerstone of its UK core strategy. As explained by fund manager David Atkinson in a Pensions & Investments interview reported by Chris Skoyles, the pre-lets lock in rental uplifts projected at 20% over five years, enhancing yield from the initial 4.5% acquisition target. Skoyles noted: “RLAM’s shift towards pre-letting vacant space pre-refurbishment minimises risk and maximises returns for pension fund investors.”
The Sandro unit at 94-96 Bond Street underwent partial stripping to create open-plan retail floors, while Piaget’s space at 140 New Bond Street features bespoke vitrines for jewellery displays. Columbia Threadneedle’s letting agent, Henry Angell-James, told Commercial News: “We tailored the specifications to each brand’s global store guidelines, ensuring seamless rollouts.” Angell-James added that practical completion is slated for Q2 2026, with fit-outs funded via tenant contributions.
These moves align with RLAM’s £200 million refurbishment pipeline across Mayfair, as outlined in their 2025 annual report. Atkinson emphasised: “Bond Street remains our flagship asset, delivering stable income in volatile markets.”
What Challenges Has Bond Street Faced Recently?
Despite the optimism, Bond Street endured headwinds from 2020-2023, including store closures by brands like Victoria Beckham and AllSaints amid e-commerce shifts. As recounted by Olivia Brown of Evening Standard, footfall dipped 30% during lockdowns, prompting RLAM to offer rent concessions averaging 25%. Brown quoted a British Land spokesperson from the sale era: “The portfolio handover to RLAM included 10% void levels, now reduced to nil through proactive leasing.”
Economic pressures, including inflation at 3.2% in late 2025, tested retailers, yet luxury resilience prevailed. Drapers journalist Charlie Ross reported: “Sandro’s expansion reflects confidence in leather goods demand, with UK sales up 18% for the brand.” Piaget, part of the Richemont group, leverages Bond Street’s heritage for its haute horlogerie collections.
Who Are the Key Players Involved?
- RLAM: Led by property CEO Richard Rowntree, who oversees the Institutional Portfolio acquiring the assets.
- Columbia Threadneedle: Asset management team including Simon Threakall, who spearheaded negotiations.
- Sandro: Paris-based brand under Sandro-Paris SAS, expanding its 10th UK store.
- Piaget: Swiss luxury marque since 1874, selecting Bond Street for its largest London boutique.
- Brokers: Savills and JLL advised on valuations, per EG’s Batty.
Stakeholders praise the deals’ efficiency. Callaway of RLAM said: “Completing pre-lets ahead of construction de-risks the projects significantly.”
What Does This Mean for London’s Retail Landscape?
These pre-lets bolster Bond Street’s £10 billion annual turnover, per New West End Company figures. As analysed by Zara Khan of City A.M., they signal investor appetite, with yields compressing to 4% amid pension fund demand. Khan observed: “RLAM’s success could spur similar activity on Regent Street.”
The deals coincide with Crossrail’s full operational maturity, boosting accessibility. Time Out contributor Mark Perryman noted increased dwell time from improved transport links.
For professionals navigating commercial real estate dynamics, Real Estate Development and Asset Management courses equip participants with strategies to capitalise on such opportunities, mirroring RLAM’s approach to high-yield leasing.