UK and global lottery operator Allwyn Entertainments has exchanged to buy The Burlian, the retail and office development straddling London's Oxford Street and Bond Street, for close to £200 million or a 3.75% net initial yield, from Hines – a deal first tipped by CoStar News in August.
The building is fully leased after Hines, the global real estate investment, development and property manager, last year secured an agreement with Abercrombie & Fitch to anchor the landmark development on the famous shopping thoroughfare in London's West End.
Abercrombie & Fitch agreed on a multi-year lease on the entire retail space of around 10,000 square feet across two floors in the mixed-use 325 Oxford Street. The building was bought on behalf of the Hines European Value Fund 2 in March 2020.
The former Next flagship store incorporates 31,000 square feet of offices, designed by Orms Architects. The offices, on the second to seventh floors, underwent a major refurbishment and extension and are now fully let. The office tenants are the purchaser Allwyn Entertainments, UPL and Cohen & Steer.
In February 2024, Allwyn took over as the fourth operator of the UK lottery on a 10-year contract. The group is part of a wider global lottery operator.
It was founded in 2012 by Karel Komárek after he took on the then-bankrupt Czech lottery. Last month the group announced a merger with Opap, a Greek gaming firm, to become the second largest gambling company globally with a valuation of £13.8 billion.
Knight Frank is advising Hines and declined to comment. Hines also declined to comment.