M&G sees high-end recovery in London’s West End as it strikes deal on prime retail assets

M&G has extended a sizeable commercial real estate loan secured against a multi-million pound portfolio of super-prime central London retail assets in Mayfair, including the Gucci store at 144/146 New Bond Street and a significant portion of retail and residential assets on St Johns Wood High Street.

It reflects the rebound in investor confidence and a continued recovery in valuations for assets in London’s fashionable prime retail markets. M&G’s Real Estate Finance team has a long-term relationship with the sponsor, Trophaeum Asset Management, having initially struck a deal in 2016.

The deal takes place against a backdrop of sharply rebounding occupier demand in central London luxury retail. With tourist numbers for the United Kingdom back to pre-pandemic levels and overseas spending at its highest in six years, reduced vacancies in the capital are setting the scene for a return to rental growth in the sector. Average central London rents are now rising at