A New York-based property tycoon and a European private equity firm have put Britain’s oldest shopping arcade on the market for £400m.
Thor Equities, run by Joseph Sitt, and Meyer Bergman have hired property agents to sell the Burlington Arcade in Mayfair.
The Grade II-listed shopping centre runs parallel to Old Bond Street. It was built in 1819 by George Cavendish, who demanded the addition of a roof to stop rowdy passers-by throwing oyster shells over the wall into his garden. It is still patrolled by liveried guards, known as beadles, who wear Edwardian coats and top hats.
Thor and Meyer Bergman bought the arcade from an Irish family in 2010 for £104m. Since then they have put in new stone floors, restored the building’s arches and brought in Chanel-owned luxury brands such as Eres, a lingerie label, and Bell & Ross, a watchmaker.
The changes — and corresponding increases in rents — caused outcry from some shopkeepers, who left. However, the arcade has kept longstanding tenants such as Hancocks, a fine jeweller.
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Market sources estimated the sale would fetch at least £400m, making it a key indicator of appetite for trophy assets after the Brexit vote.
Phil Cann of CBRE, the agency handling the sale, said the decision to leave the EU had boosted London retail sales by sparking a fall in the pound and so attracting more foreign shoppers. He said the Burlington Arcade was likely to draw strong interest from Asian and Middle East suitors.