Prada is once again placing a strategic bet on bricks-and-mortar retail, with the Italian luxury group reportedly close to acquiring the prestigious London property housing its Miu Miu boutique on New Bond Street. According to reports in WWD, Prada Holding is nearing a deal with asset manager M&G Investments to purchase the building for approximately 250 million pounds.

The site, located at the corner of New Bond Street and Bruton Street, spans 371 square metres and has served as Miu Miu’s London flagship since 2010. Currently, the boutique is undergoing renovations, hidden behind billboards as it prepares for its next iteration. The acquisition would give Prada full ownership of the building, a move increasingly favoured by luxury houses seeking greater control over their most coveted retail locations.

This latest purchase marks Prada’s continued expansion into real estate — a strategy luxury brands have been embracing as they recalibrate their long-term retail plans in an evolving luxury market. In 2023, Prada Group paid 425 million dollars to secure the freehold for its Fifth Avenue store in New York, further cementing its commitment to owning rather than leasing flagship locations.

As high-end shopping streets from New York to London become ever more competitive, ownership offers both security and flexibility. Controlling their own retail footprint allows luxury brands to dictate the pace and extent of store refurbishments, align architectural design with brand messaging, and hedge against future rental volatility in prime locations. It also represents an investment in the long-term value of the properties themselves, many of which are located on some of the world’s most valuable retail thoroughfares.

Prada’s commitment to real estate is reflected in its capital expenditure. In 2023, the group invested 753 million euros across property, industrial infrastructure, retail and corporate IT, with a further 493 million euros allocated in 2024. During its latest earnings call, Prada signalled that investments in retail and industrial spaces will increase to 550 euros million in 2025, underscoring the brand’s focus on enhancing and expanding its physical presence.

The strategy is not unique to Prada. Across the luxury sector, property ownership has become a key lever for controlling brand environments at street level. Chanel, Hermès and Louis Vuitton have also invested heavily in their real estate portfolios in recent years. As online channels mature and the physical store increasingly becomes a brand theatre rather than just a point of sale, owning the stage has never been more important.