Menswear brand Hackett is to pay a record rent on Regent Street in the former Ferrari store.

Hackett will pay £1.6m a year to rent the 11,000 sq ft store in a 15-year lease. The retailer will pay a record zone A – the area at the front of a shop considered the most valuable due to the frontage on to the street – rent of £645. revealed last month that Hackett was on the verge of signing for the store.

Hackett, which has about 10 stores in the UK, is to trade over three floors. It has been let by a private landlord, advised by international real estate agent Savills.

Regent Street owner Crown Estate has been transforming the area in recent years, pulling in big-name brands including Superdry and Hollister. Burberry opened a flagship on the street last year.

Ferrari’s store was opened to great fanfare in 2009 by Ferrari driver Kimi Räikkönen.

Anthony Selwyn, director of central London retail at Savills, said: “The availability of the store created a very competitive bidding process from several parties, which demonstrates the appeal of Regent Street, lending itself as an ideal location for strong mid-to-upper-range brands. We believe we will continue to see strong demand for the street which, thanks to the Crown Estate’s thoughtful estate management policy, has been set apart as one of the most desirable retail locations in the West End.”

Michael Horwitz acted for Hackett, and KLM acted for Percassi, which trades as Ferrari. The private landlord is the long leaseholder of the store and the Crown Estate is the freeholder.