DOHA: Qatari Diar, the property arm of Qatar's sovereign wealth fund, is to buy Christian Candy's CPC Group's equity stake in the Chelsea Barracks Project Blue, London's most expensive development.
Property tycoons Candy & Candy have conceded that Qatari Diar has acquired an option to take full financial control of both schemes from Christian candy's Guernsey-based CPC Group, London-based Property dailies reported. However, Candy & Candy, run by property entrepreneur brothers Christian and Nick Candy, will still be responsible for development and planning management, branding, marketing, interior design and interior architecture on the one billion pound worth project.
Project Blue, which is set to deliver 638 apartments on the 12.8 acre former Ministry of defence base, has also undergone a number of major design changes, London's Property Week.com reported.
'The intended equity transaction relating to Project Blue and the consequent increase in our involvement in the redevelopment of the Chelsea Barracks site are expressions of our deep commitment to the UK real estate market", the Property Week quoted Ghanim bin Saad Al Saad, Chief Executive of Qatari Diar as saying.
"UK-based CPC Group and Qatari Diar completed the purchase of the five-hectare property in London's Westminister district from Britain's Ministry of Defence in January this year. A month later, Qatari Diar said it had secured $2.5bn in funding for the joint venture purchase of the Chelsea Barracks. The loan was underwritten by Mashraf Al Rayan, BNP Paribas, Calyon Credit Agricole, HSBC Amanah and Qatar National Bank (QNB).", Property EU reports.
The company has plans to develop 135,00 m2 of luxury apartments, a luxury hotel and an underground car park on the site. Architect practice Rogers Stirk Harbour + Partners in conjunction with London's leading interior design house and development manager, candy & Candy, will lead the new project.
"The Candy brothers have agreed to sell their stake in the £8bn Chelsea Barracks scheme and the neighboring Grosvenor Waterside development to their Qatari partner", another daily reported. Days after denying that they were negotiation of a buyout, property tycoons Nick and Christian candy have conceded that Qatari Diar has acquired an option to take full financial control of both schemes from Christian candy's Guernsey-based CPC group, it said.
Candy & Candy will continue to work on both schemes and will remain responsible for all future investment decision. This has never been disclosed, but is thought to have been in the region of £500m, making it the second most expensive sold in London after the one billion pound Barracks site.
By Satish Kanady
© The Peninsula 2008
