APPLE Computer is planning to open a giant flagship store on London’s Regent Street after striking a deal with the Crown Estate, the holding company for the Queen’s property assets, The Times has learnt.

The outlet, which will span 20,000 sq ft is expected to sell Apple’s entire product line including the iPod digital music player range and Apple notebooks and desktop computers. Apple stores also sell digital cameras and camcorders and hold free interactive workshops.

The outlet, which is expected to cost Apple about £1.5 million a year in rent, would be its first flagship store in Europe. So far it has just five other flagship stores based in New York, Chicago, Los Angeles, Tokyo and San Francisco. In total it has about 75 retail stores, mainly in the US.

The deal with the Crown Estate, forms part of an ambitious £500 million plan to improve Regent Street over the next ten years. Apple will take space in the Crown’s first redevelopment at 229-247 Regent Street. The store is expected to open in time for Christmas.

At the end of last month the Crown submitted applications for a scheme at the Piccadilly end of the street, which would involve redeveloping the Café Royal as a 5-star hotel and demolishing the Regent Palace Hotel and replacing it with shops and offices.