Few projects can rival the scale and complexity of Curzon Land’s planned redevelopment and then sale of a 65,000 sqft palace next to London’s Hyde Park, previously owned by a Middle Eastern royal family.
The property had between 42-45 bedrooms and it included three huge throne rooms, a banqueting room with chandeliers valued at £30,000 each and a swimming pool, with two others that had been covered over.
The owner, who also owned an even more iconic house in Regents Park which is one of Britain’s most expensive properties, had inherited the palace when his father passed away.
After approaching Curzon Land as an owner’s representative, we began evaluating the highest and best use, considering options such as a boutique hotel, town houses, luxury apartments or selling it as a single house.
We settled on dividing it into flats and in order to do this we approached three of the major development management companies active in Central London, to leverage their unique knowledge of what product would bring our client the highest exit price. They would design, specify and manage delivery of a product suitable to the ultra high net worth market.
They all came in to do presentations and we picked a clear leader who devised a scheme to divide the property and they got planning permission for 13 apartments, while avoiding having to pay a tax for affordable housing by coming in just under the limit.
We then took the plans to the lending market and secured rare development financing of £150 million to get the project built.
In the meantime, all of the smaller tasks had to be completed and that was up to us at Curzon Land.
For example, the property was held in an obscure and historic company structure, so we had to create a new holding structure that was acceptable for bank lending.
There was also the issue that the palace was stocked and ready to live in, so we had to do a contents sale, using the same company who auction off items from London’s major hotels, and we sold everything from tissue holders made of precious metals to diamond encrusted bins and all the contents from the two professional kitchens, raising much needed cash for the project.
We dealt with all the property management responsibilities, which meant keeping up to date with and paying the electricity, gas and water bills, while paying the staff and security.
We also had to negotiate the fees for the development management company because this can change dependent on whether they are just handling management or if they’re acting as contractor themselves too.
Ultimately, our job was to relieve the owner of as much stress and hassle as possible, so that the project was completed seamlessly from his point of view.
With that being said, just before construction got underway for the original plan, we were re-approached by a businessman from the Far East who we had previously shown around the property.
He offered a figure that, whilst being lower than the gross development value of the project, it meant that the client could have the money immediately instead of waiting for three years and taking all the construction risk and incurring costs and interest. The decision was an easy one.
To this day it remains the highest price paid for a single house in England.
The entire project spanned three to four years, during which time we at Curzon Land accrued invaluable experience in managing large-scale high-end developments.
This venture not only enhanced our capability to handle significant projects but also maintained our connection with the upper echelon of the residential market.
Building relationships with high-net-worth individuals has enriched our network, enabling ongoing partnerships that continue to yield success.
If you’re considering a high-stakes property development or acquisition be it residential or commercial or need expert guidance navigating the complexities of luxury property investments, Curzon Land is ready to assist.
Contact us today to discover how our expertise can bring your vision to life and add significant value to your property portfolio. Reach out via email at cgreen@curzonland.com or call us at +44 (0)7948 979 490 to start your journey with a trusted partner in property investment.
