Formula 1 McLaren store races onto London market

The Formula 1 racing group McLaren store at the luxury London residential development One Hyde Park has been put up for sale through Savills for £11.5 million, following the sale of the neighbouring Rolex-occupied store last month.

The 296-square-metre store is on offer at a net initial yield of 3.29% and let back to McLaren on a 15-year lease at an initial rent of £400,000 a year.

Last month the Russian investor Grigory Guselnikov bought the Rolex store for £13 million, reflecting a net initial yield of 2.91%.

A third retail store -- to be let to Abu Dhabi Islamic Bank -- is expected to open this year.

The Knightsbridge retail-residential Candy Bros-built complex, which sits close to the big department stores Harrods and Harvey Nichols, is one of London's most expensive developments.

Investors seeking the best shops on the UK capital's prime shopping streets have included the sale of the Cartier store on Old Bond Street, which sold at £18.65 million in July, reflecting a reported record-low yield of 2.8%.

“Investors are investing in London because rents have been growing and growing consistently for the last few years,” CB Richard Ellis executive director Phil Cann told Reuters.

“London, Paris, New York are considered as safe havens at the moment for cash, and it's about return of capital, not returns on capital,” he says.