Selfridges has acquired an office block near to its flagship store in Oxford Street for £130m, suggesting the retailer will expand its presence in the area.

The department store retailer has signed an off-market deal to buy Nations House from Hermes, a property fund management group. The two parties had been in lengthy negotiations over the deal, sources familiar with the subject told the Financial Times.

Nations House is a 100,000 sq ft office block let to a series of small business tenants.

Selfridges and Hermes both declined to comment.

In May, Renzo Piano, the Italian architect behind the Shard skyscraper, was appointed to Selfridges to help design an extension for its Oxford Street store. According to CoStar Finance, the property information service that revealed the deal, the scheme could include a luxury hotel as well as retail and office space.

At that time, a Selfridges spokesperson said: “Plans incorporate the 1909 landmark building along with adjacent spaces and new architecture within (and above) the urban block. The project is rooted in Selfridges’ ambition to remain great for generations to come, by pushing the boundaries of architecture, design and customer experience.”