U.S. private equity firm KKR has bought one of London’s best-known stores and is teaming up with a developer to upgrade the space.

KKR has bought the 258K SF Heal’s building on Tottenham Court Road for £117M from fund manager Columbia Threadneedle.

The six-storey mixed-use building includes the famous furniture store Heal’s, office space leased to companies like Netflix and Liverpool Football Club, and residential units.

KKR has enlisted Jacob Loftus’ General Projects to rejig the scheme, though details are sparse in the immediate aftermath of the deal. General Projects has a track record of undertaking mixed-use redevelopments and refurbishments, with its projects usually led by tech and creative sector-focused workspaces.

Tottenham Court Road is known for its cluster of furniture stores, but the fortunes of big retailers on the road have diverged amid the coronavirus pandemic.

Heal’s announced record sales for 2020, driven by strong online sales during pandemic-induced lockdowns. But rival Habitat said in 2020 it would close its own large flagship store a few doors down.

JLL advised Columbia Threadneedle, and Michael Elliott advised KKR.