Cosgrave Property Group has bought the Zara store on London’s Oxford Street for around £44m from Scottish Widows Investment Partnership.

It bought the 40,000 sq ft office and retail unit in a deal reflecting a yield of around 5.5%. Zara pays an annual rent of around £1.5m on a 20-year lease. It is thought that Ulster Bank provided funding for the deal

The Dublin-based developer already owns a number of buildings on the street, including the building Jubilee House next door to Zara. The two building together create a 1.1acre landbank east of Oxford Circus.

Cosgrave also owns the 55,000 sq ft retail block at 301-307 Oxford Street which is let to River Island. He bought the building for £86.5m in October last year reflecting a new initial yield of 4.37%.

CB Richard Ellis advised Cosgrave.