Luxury brand Chanel has paid a record sum to secure Bond Street premises for a UK flagship store in a building opposite the new Louis Vuitton flagship store.

Chanel will pay more than £4m in cash to cover the cost of leaving to the present occupier, Nicole Farhi, and as a result of competition for the property.

Chanel, which is taking a 25-year lease on the building, will also pay a near record rent for a building of its size (£2.35m a year), the Financial Times reported.

Martin Thomas, director in the central London retail team at Jones Lang LaSalle, said: “This section of Bond Street is now the pitch for the best of the brands.

Source: FT