PRADA S.p.A. (PRADA) has executed a rent review for its Miu Miu flagship store at 150 New Bond Street/40 Bruton Street, London, effective 15 March 2025 to 14 March 2030.
• Scope of revision – Lessee: Prada Retail UK (wholly owned by PRADA) – Lessor: Prada RE UK (wholly owned by Prada Holding S.p.A., an 80% shareholder of PRADA) – Guarantor: PRADA
• New annual rent schedule (exclusive of VAT) – 15 Mar 2025 – 31 Dec 2025: GBP 3.21 million (pro rata) – 2026: GBP 3.70 million – 2027: GBP 4.20 million – 2028: GBP 4.40 million – 2029: GBP 4.40 million – 1 Jan 2030 – 14 Mar 2030: GBP 4.40 million (pro rata)
• Financial impact – The revised cash flows increase the recognised right-of-use asset to approximately GBP 37.72 million (HKD 395.33 million), measured at the discounted present value of future fixed lease payments. – Any rent shortfall from 1 January 2026 to the Memorandum date will be settled in a single payment within 14 days of the lessor’s request.
• Strategic rationale – The site sits on New Bond Street, one of London’s highest-profile luxury retail corridors, underpinning brand visibility and customer access for Miu Miu. – Management views the revised terms as commercially reasonable and aligned with prevailing prime-location market rents, based on independent appraisals (GBP 4.40 million – GBP 4.41 million from 2028 onward).
• Listing Rules classification – As Prada RE UK is a connected person, the lease modification constitutes a connected transaction under Chapter 14A. – The highest applicable percentage ratio, calculated on the right-of-use asset value, exceeds 0.1% but remains below 5%; hence the deal requires announcement but not independent shareholder approval.
• Board participation – Directors with ties to Prada Holding S.p.A. – Patrizio Bertelli, Miuccia Prada Bianchi, Paolo Zannoni and Lorenzo Bertelli – abstained from voting or were absent during approval. Independent non-executive directors concurred that the terms are fair, reasonable and in the interests of PRADA and its shareholders.
The existing lease, signed in 2010 and expiring 14 March 2035, mandates five-year rent reviews. Quarterly rent payments will continue in advance on usual quarter days.