Oxford Properties agrees new long-term lease with Valentino at Paris flagship store

Green lease clauses at 273 Rue Saint-Honoré will enable Oxford to better monitor and optimize the asset’s ESG performance

April 24, 2024


Oxford Properties Group (“Oxford”), a leading global real estate investor, developer and manager, today announced that it has signed a new 12-year lease with Valentino, the Italian Maison de Couture, for its flagship store at 273 Rue Saint-Honoré, Paris (“273 Saint-Honoré”). 

Valentino has occupied the property’s entire 1,430 square metres of retail, exhibition and office space since 2013. Oxford acquired 273 Saint-Honoré in 2018, marking its entry into the Paris luxury retail market, which complements the company’s global luxury retail portfolio featuring prominent assets in London, New York and Toronto. At the time of acquisition, 273 Saint-Honoré was fully let to Valentino with seven years remaining on the lease.

Since its acquisition in 2018, Oxford has worked closely with Valentino to support their growth and real estate requirements. Multiple renovation works were completed between 2018 and 2023, including a new fit-out of the retail space, conversion of some of the upper floors into additional retail space and improvement of the VIP areas.

Capitalising on the strong relationship and a shared long-term vision for the asset, a new 12-year lease was agreed between both parties. This new long-term lease ensures a secured space on a strategic street for Valentino and delivers significant value to Oxford via a rental uplift that crystallises the reversion potential. As part of this new agreement, Oxford and Valentino will cooperate to monitor and optimise the asset’s energy efficiency and environmental performance with the aim of best practice ESG.

Pierre Leocadio, Head of Office & Retail Europe at Oxford Properties, said: “This new lease agreed at 273 Saint-Honoré highlights the appeal of this flagship asset on one of Paris’ most sought-after luxury shopping streets. On the back of leasing success at 32 Blanche earlier this year, this is another great illustration of our ability to create long-term value and unlock the reversion potential within our portfolio on behalf of our pension members.

“This deal is also testament to the strength of our local asset management team in France and their long-term relationship with Valentino, who were eager to secure a lease extension ahead of expiry. As a client not only in Paris but also in our North American retail portfolio, we look forward to continuing to work closely with them in the years ahead.”

This latest Paris letting follows Oxford agreeing new leases with Sodexo, Factset and EOS Imaging at its 32 Rue Blanche office, alongside renewed leases with existing occupiers Criteo and Mutuelle Interiale, which took the prime Central Paris asset to 100% occupancy.

Since acquiring its first asset in the French market in 2014, Oxford has amassed a leading multi-sector portfolio across France, representing approximately €1 billion in AUM.

Valentino Rue Saint Honore