Apple Store

Background

Co-mandated with a large investment bank, JLL was brought into the marketing process when the client realised that the real estate and retail knowledged possessed by JLL would be critical for the success of the sale. We set out our pricing guidance on the basis of pricing the long term income component.

Upon opening in 2018, the asset is set to become the European flagship store of the world’s most valuable brand, Apple.

Strategy

Demand from institutional investors was strong, as they were keen to gain exposure to such a unique asset. The ticket size was initially seen as a challenge and therefore we worked closely with a number of investors to explore the possibility of creating a consortium to buy the asset. This step was essential in the first phase of the bidding process to identify critical capital sources to shortlist in the final round. We leveraged our strong experience to identify frustrated capital and maintained flexibility throughout the process to allow time for a road show to attract first-time investors to the market including a dedicated trip to Hong Kong, Korea and the Middle East. We harnessed our global experience not only for iconic high street retail but also specifically for the sale of Apple Stores.

Results

The bespoke process resulted in record interest and price tension for the sale. Our international reach and local knowledge finally resulted in a strong institutional investor acquiring the asset at a record pricing level.