The Financial Times reports;
“One Hyde Park, London’s most expensive residential development, has shown it is not immune from the downturn as one of its luxury apartments is repossessed.
A one-bedroom apartment in the Candy Brother’s flagship development is being marketed by estate agent Strutt & Parker for £5.25m after being appointed by the property’s receiver. It is believed to be one of the first repossessions at the infamous Knightsbridge development.
One Hyde Park, built by the Candy Brothers and Waterknights, the international property development company owned by Qatar’s prime minister, has become synonymous with the excesses of new wealth.
Flats in the luxury development fetch between £5,000 and £7,500 per sq ft, nearly double the average for the surrounding area. The tenant register is dominated by shell companies registered in tax havens.
The repossessed flat is 988 sq ft, situated on the fourth floor and considered to be one of the development’s more affordable, “entry-level” apartments. It has a service charge of nearly £14,000 per annum and ground rent of £2,000 a year.
Tracy Kellett of BDI Homefinders, a high-end buying agent, said One Hyde Park has proven itself to be the “worst investment anyone could have made in prime central London”.
She said: “Whilst many properties have gained at least 50 per cent since 2007, OHP is selling resales at £6,000 per square foot, which is precisely what they were selling for in 2007.”
The repossession comes as concerns mount that London’s high-end property market is showing signs of overheating.
Prices of expensive central London homes have soared since the market low of March 2009, as overseas investors have taken advantage of currency discounts and low prices. Values are up as much as 60 per cent since 2009. “