Liberty sells Regent St flagship for £41.5m

15th Mar 2010 08:18

West end retailer Liberty has agreed a £41.5m sale and lease back of its world famous Regent Street store.The freehold of the 125,000 sq ft shop, officially on Great Marlborough Street, London W1, has been sold to Sirosa Liberty Limited. Valued at £30.25m at the end of 2009, the sale price represents reflects the increased demand for prime freehold property assets in Central London, the statement said.Under the terms of the deal, Liberty will take a 30-year lease on the building at an initial annual rent of £2.1m, with five yearly fixed rent reviews. The funds will be used by Liberty to repay its bank and other debt.MWB, Liberty's main shareholder with a 68% stake has to agree the deal, though the board and other shareholders speaking for a third of MWB's shares have already agreed.Last week, Liberty confirmed it is talking to potential buyers after receiving a number of bid approaches.Its overall revenue for the year to December 2009 grew by 20% with the flagship store's revenue up by 16%. "Trading has continued to benefit from the Renaissance of the Regent Street flagship store in February 2009 which drove footfall and market share over the remainder of the year and has continued to do so in 2010," it added.