Jeweller Mappin & Webb has regeared its leases at Bond Street House in London's New Bond Street to allow the development of a new three-level flagship store with offices above.
Landlord Great Portland Estates has granted an overriding lease at a rent of£1.1 million a year.
Previously, only the ground and basement retail units were leased to Mappin & Webb subsidiary Watches of Switzerland, on two leases expiring in June 2006.
Now Mappin & Webb has signed up for a 25-year term and will carry out a refurbishment of the store, including a complete upgrade of the shop front.
Great Portland Estates chief executive Toby Courtauld said: 'We are delighted to have achieved the regear with Mappin & Webb Limited at this important Bond Street pitch. I believe that the strategic locations of these sites will work well alongside Kier Property's future plans.'