PrimeResi.com - Editorial Highlights

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Journal of Prime Property
HIGHLIGHTS FROM A MONTH ON PRIMERESI.COM
Mayfair’s Middle
Eastern Takeover
Designing for
cultural differences
Deconstructed:
The world’s most
expensive penthouse
The Housing
Standards Review
ISSUE I: August’s end, 2014
The poor
door debate
Interview: Triangle
Group’s Rick Denton
A history of the
Wentworth Estate
Why 2015 could make
or break the market
An essential resource for anyone professionally involved in the UK’s luxury property industry
www.primeresi.com

NEWS: PEOPLE & BUSINESS
Bradman &
Lipton back
together for
major resi
play
Uber-developers
Godfrey Bradman
and Sir Stuart Lipton
are reportedly
back in business
and making a significant
play on the
UK’s private rented
sector. Q
Countrywide
sells Sotheby’s
franchise and
two branches;
others to be
rebranded
Countrywide has
decided to sell its
exclusive Sotheby’s
International Realty
licence, just four
years into the 25
year term. Q
Oaktreebacked
Anthology
completes
senior team
New Oaktree Capital
Management-backed
property developer
Anthology has completed
its senior team
by hiring former
Mount Anvil man
David Clark. Q
Hamptons
taps into
short let
boom
Hamptons International
has
decided to launch
a dedicated Short
Lets Department
in response to a
‘significant rise in
demand’. Q
JLL research
team hires
high-profile
property
journalist
JLL has made a
strong signing
to its Residential
Research department,
snapping up
the former News
Editor of Estates
Gazette. Q
Cluttons
recruits digital
guru
Cluttons has hired a
new digital marketing
manager from
Property Week
magazine. Q
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New Exec Director for City
& Westminster Property
Associations
The City and Westminster Property Associations
– which look after the interests
of over 400 of prime central London’s
property owners, developers, investors
and advisors – has appointed a new Executive
Director. Q
Read these stories
and more in full at
www.PrimeResi.com/news
Peace to chair TTA
Liz Peace – the outgoing Chief Exec of
the British Property Federation – is joining
PR agency TTA Property. Q
Bouygues appoints new
Commercial Director
Bouygues UK has promoted Colin
Whitfield to the Group Commercial
Director seat with immediate effect. Q
Images, from top: Westminster Property Association, The British Property Federation, Cluttons
p.2
this is just a small selection of highlights from August’s news on PrimeResi.com
read the full stories here: www.primeresi.com/people

MARKETWATCH
- New housebuilding starts: 0% change
(Quarterly), u +22% (Annual) – HMRC
NEWS: THE MARKET
Middle Eastern buyers
account for 50% of
Mayfair’s super-prime deals
Image courtesy of Wetherell
uHouse price annual inflation: +19.3%
in London, +10.7% in England, +3.5%
in Wales, +6.0% in Scotland, +4.9% in
Northern Ireland – ONS
dAsking prices: England & Wales -2.9%;
London -5.9% (Monthly) – Rightmove
uPCL prices +11.3%; uPCL transactions
+19.3%; uGreater London prices
+12.1%; uGreater London transactions
+20.1%; uEngland & Wales prices
+5.9%; uEngland & Wales transactions
+30.9% (Annual, Q2 on Q2) – Land
Registry / LCP
- London prices +0.3% (Monthly);
dAnnual increase down from +8.1% to
+7.9%; dnew prospective buyers -25%;
dviewings -10%, uexchanges +3%
(Annual); - London rents +0.5%; unew
tenant registrations +17%; utenant
viewings +25% (Annual) – Knight Frank
uCapital values +15.9% (Annual);
daverage gross yield down to 3.19% –
Cluttons
dTransaction levels -8% compared to
average (Quarterly) – Strutt & Parker
uNew instructions +26%;
dTransactions -9.9%; uPSF prices for

NEWS: THE MARKET
Appetite for
Construction:
New house
building starts
up by a fifth
There’s been no
change in the number
of new house
building starts over
the last quarter,
although the number’s
up by nearly a
fifth year-on-year,
according to the
latest Government
stats. Q
The Big
Summer Sale:
Record drop
in August
asking prices
The average asking
price of newly-marketed
property
across England and
Wales is down by
2.9% this month
compared to last,
according to Rightmove.
Q
Resi yields
drop but
investor activity
accelerates
The pace of growth for
residential investments
slowed up in Q2, leaving
capital values 15.9%
up on the year, says
Cluttons. Q
‘The financial
crisis no
longer
dominates
the fortunes
of the prime
London
residential
market’
A looming General
Election and
expectations of an
interest rate rise
have eclipsed the
global economic
meltdown as the
primary factors affecting
the top end
of London’s property
market, says
Knight Frank.Q
London
house prices
have risen
by 19.3% in
the last 12
months -
ONS
While still strong,
the pace of annual
house price growth
in the UK has
dropped a smidge,
from +10.4% in
the year to May
to +10.2% in the
year to June 2014,
according to the
latest batch of stats
from the ONS. Q
Read these stories
and more in full at
www.PrimeResi.com/news
House price expectations
‘substantially lower’ than
May’s high point
“The price exuberance seen in some corners
of the market is easing,” says Knight
Frank’s Gráinne Gilmore, as the agency’s
monthly House Price Sentiment Index
shows another drop. Q
50% of new applicants made
an offer in July – D&G
There seem to be some pretty motivated
househunters out there this Summer,
with Douglas & Gordon reporting that
nearly half of its new applicants actually
made an offer on a property last month.Q
Caution, Plateau: London’s
new prime sales landscape
There’s been “a distinct change in
attitude on the part of both buyers and
vendors” in prime London through
this year’s second quarter, says Chestertons.Q
London Uberground:
Housing markets along the
‘ginger line’ outperform
One of London’s least-celebrated transport
links – the ‘ginger line’ – has actually
had a profound effect on the property
markets it passes through, according to
Hamptons International. Q
Graph by Knight Frank
p.4
this is just a small selection of highlights from August’s news on PrimeResi.com
read the full stories here: www.primeresi.com/the-market

Images, from top: The Crown Estate, Heron International, villaforsale-spain.com, Brimelow McSweeney
Church sells chunk of
Mayfair to Crowns for £381m
The Church has offloaded its 64% stake in
the Pollen Estate - that four acre square of
Mayfair between Conduit Street, Regent
Street, Burlington Gardens and Bond
Street – for £381m. Q
Heron Plaza site sells to
Singapore’s UOL Group
Singapore-based UOL Group has bought
the Heron Plaza site on Bishopsgate from
Gerald Ronson’s Heron International for
£97m, with plans for luxury residential
apartments, a hotel and retail units. It’s
UOL’s first major London play. Q
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Nod for Brimelow
McSweeney’s Soho scheme
Brimelow McSweeney has bagged planning
permission for its residential designs
on 181-185 Wardour Street. Q
NEWS: DEALS & DEVELOPMENTS
‘Heroic’
rescue of
Brontë’s muse
wins top
restoration
award
A late medieval
house in North
Yorkshire that’s
thought to have
inspired the setting
for Jane Eyre has
walked away with
this year’s coveted
HHA & Sotheby’s
Restoration
Award.Q
Hadley
completes
Chelsea
Island
acquisition
with £48m
bridge
Luxury developer
Hadley Property
Group has completed
the acquisition of
a development site
in Chelsea Harbour
with a chunky
bridging loan from
Omni Capital. Q
Lift off for
government
property
search engine
It’s just got a whole
lot easier to find underused
and empty
government land and
property. Q
Construction
firms battle it
out over £600m
Battersea
Power Station
contract
It sounds like things
are heating up in the
battle for the £600m
contract to redevelop
the main Battersea
Power Station building.
Q
Free
Lamborghini
Diablo: Spanish
villa offered
with supercar
sweetener
A villa on the Costa
del Sol is being offered
for sale with a free
Lamborghini Diablo
thrown in to sweeten
the deal. Q
Tough love for
Candy’s Sugar
Quay S106 plea
Planners are “sticking
to their guns” over
a £15m affordable
housing contribution
requirement for Candy
& Candy’s Sugar Quay
development. Q
this is just a small selection of highlights from August’s news on PrimeResi.com
read the full stories here: www.primeresi.com/news
p.5

NEWS
Here’s what the first new-build for over a century on
Britain’s most expensive street, Kensington Palace Gardens, will look like.
Designed by Colwyn Foulkes & Partners and revealed on PrimeResi back in
Millionaires’ Rows 2014:
Britain’s most expensive streets, towns and areas
The value of Britain’s most expensive streets is rising at nearly twice the national average,
meaning that the number of “property millionaires” – with homes worth more than £1m
– is nearly 50% higher than it was last year.
Property prices on the the UK’s ten most expensive streets have increased by 12.9% over
the last 12 months, while Zoopla’s stats show a national average price rise of 6.6% over the
same period.
The portal’s annual Property Richlist shows that there are now 484,081 £1m+ homeowners
in Britain – up 49% on last year – and that there are 10,613 streets in Britain with an
average property value of £1m+, up 29% on 2013. 3,744 of those “Millionaires’ Rows” –
just shy of a third of the total and all the top 20 – are in London.
12 streets claim an average house prices over £10m. Kensington Palace Gardens again
tops the table, with an average price of £42,730,760 (62 times the £263,705 value of the
average British home, says Zoopla). The Boltons in SW10 takes second place with average
house prices standing at £26,570,341, and Grosvenor Crescent in SW1 rounds out the top
three with average property prices of £22,293,470.
Outside of the capital, the most expensive street in Britain is Sunninghill Road in Surrey,
where the average home is currently worth £5,605,067. The two most expensive towns
outside London are both in Surrey, with average house prices in Virginia Water at
£1,186,262 and Cobham at £1,003,400.
W8 (Kensington) remains London’s most pricey postcode, with average property prices
in the area of £2.78m. Neighbouring SW7 (Knightsbridge), the next most expensive area
in the capital, has average values of £2.48m, while property values in third-placed SW3
(Chelsea) stand at £2.37m. The rest of the top 10 is dominated by areas in South West,
West and North West London. Q
p.6
this is just a small selection of highlights from August’s news on PrimeResi.com
read the full stories here: www.primeresi.com/the-market

Britain’s Top 10
Most Expensive Streets
1. Kensington Palace Grdns, London W8
2. The Boltons, London SW10
3. Grosvenor Crescent, London SW1X
4. Courtenay Avenue, London N6
5. Ilchester Place, London W14
6. Frognal Way, London NW3
7. Carlyle Square, London SW3
8. Montrose Place, London SW1X
9. Cottesmore Gardens, London W8
10. Manresa Road, London SW3
Average
Property Value
£42,730,706
£26,570,341
£22,293,470
£16,877,746
£11,853,515
£10,974,043
£10,846,481
£10,683,611
£10,631,829
£10,362,420
Annual %
Increase
12.11%
13.64%
12.43%
13.67%
16.02%
8.38%
14.14%
12.43%
12.11%
14.14%
Britain’s Top 10
Most Expensive Towns
1. Virginia Water, Surrey
2. Cobham, Surrey
3. Keston, London
4. Esher, Surrey
5. Richmond, Surrey
6. Beaconsfield, Buckinghamshire
7. Chalfont St. Giles, Buckinghamshire
8. Gerrards Cross, Buckinghamshire
9. Radlett, Hertfordshire
10. Weybridge, Surrey
Average
Property Value
£1,186,262
£1,003,400
£947,955
£931,669
£906,770
£897,872
£836,434
£815,222
£794,569
£785,400
Annual %
Increase
5.91%
6.94%
10.81%
10.08%
12.47%
4.79%
0.47%
9.38%
14.21%
6.96%
Source: Zoopla.co.uk
this is just a small selection of highlights from August’s news on PrimeResi.com
read the full stories here: www.primeresi.com/news
p.7

VIEWS
Why 2015 could make or break
the UK’s property market
For homeowners – especially those in the South East and London – it has never been
more important who wins the next general election, says Trevor Abrahmsohn…
In the past, whether it be New Labour or Conservative who won an election, it mattered
little. Neither party were advocating any particular alarming legislation as it applies to
property ownership and therefore there was no predictable downturn or upturn before or
after the Election. It was a case of ‘same old’. I will admit, there has always been a hiatus a
few weeks before and after an Election where the market has moved sideways for a short
while but no real change has manifested itself.
The spring Budget and the Autumn Statement have an effect particularly where Stamp
Duty rises have been leaked beforehand and then there has been a real crescendo of activity
in the weeks, days and hours before the Budget announcement where buyers accelerate
and precipitate their activities in advance of rises in SDLT (Stamp Duty).
The outcome of the May Election in 2015 will be different. With the Lib-Dems making
Mansion Tax a main plank of their Manifesto and Ed Balls, of the Labour Party, aping
their sentiments, the spectre of this draconian tax is having a very profound effect on the
London property market particularly above £5-10million. Frankly, you can’t blame anyone
since in London £2million will not buy you a mansion and it is a mischievous plot to
describe what is otherwise a tax on London’s wealthy.
By way of illustration, a person living in say a £5million house will be facing a gross tax
of £60,000 per annum which is probably a third to a half of their gross income. A widow,
for instance, who bought their family home many years ago and does not have a huge
income will be distressed at this scurrilous and punitive tax. Even if they roll up the tax
with interest, until such time as the widow dies or sells, the benefit that she would like to
pass to her family (after death duties) will be soaked up by the Mansion Tax process.
It is therefore no wonder that buyers and householders are so vexed about this and it is
already having a profound effect on sentiments where people are delaying decisions until
the outcome of the Election is better known. This negative sentiment has been getting
gradually worse over the last 18 months from the obscene rises in SDLT since the Budget
of 2012 where non-corporate tax has gone up by 40% and corporate by 300%.
In addition the Chancellor (egged on by the Lib-Dems) has changed the taxation
arrangements on Capital Gains and there is a “posse of the press” who consider ‘Jonny
Foreigner’ buying property in the UK as being thoroughly ‘undesirable’ soaking up our
limited supply of private housing.
The net effect of all this is that the market outside the Central London area, particularly
along the north west London corridor over £5-10million pounds has been conspicuously
p.8
this is just a small selection of highlights from August’s views on PrimeResi.com
there’s more at www.PrimeResi.com/views

affected by fewer transactions. In fact the turnover of properties in
this price range for estate agents is down by 60/70%. Even central
London is now affected where prices are relatively stable (with no
growth) and foreign buyers are markedly fewer.
The Russians have local difficulties with a declining economy, a
falling Rouble and a shrinking economy quite apart from the threat
of sanctions on key individuals but other foreigners are being put
off by this self-inflicted problem.
Prices at the top end are generally down in the suburbs by 10-15%
and I see no growth at all in Central London apart from the few hot
spots where, at the best of times, there is no supply whatsoever.
A telling sign of this malaise is that key roads in north west London have a number of
un-sold properties whereas under usual circumstances there is just no supply.
Very recently, as sellers grasp the reality of this new circumstance, they are being more
realistic with prices and this is triggering some sales – which is very welcome.
The market up to £2million (the threshold for Stamp Duty and coincidently Mansion
Tax) has been very busy of late across London and the rest of the UK with growth of between
8-10% but even this is slowing down and we will see what happens in September, a
seasonally busy month, if sentiments have changed over the summer.
In the lower price ranges I see 5% growth on an annualised basis since the shortage of
private housing will always keep prices moving upwards. Buyers are concerned about
rises in interest rates and its effect on mortgage rates which will happen at the end of this
year and if not next year. Mortgagees are taking an inordinate amount of time to process
mortgage applications and that is having an effect on the speed of the conveyancing
process.
Above £2million the cost of sales to trade upwards is 10% of the new purchase and this
is having an effect on sentiments where householders are preferring to spend the money
extending their properties either through loft conversions, ground floor extensions or
basements since there could be a tangible tax free taxable gain when the enlarged property
is sold rather than giving it to the taxman by way of SDLT.
Prices between £1-2million, after the election, will probably remain similar i.e. 5% in
growth but the real changes could be above this level where if a Mansion Tax is imposed
by either a Labour Party or a coalition with the Lib-Dems I see prices dropping by 25%
or more. There are some welcome conciliatory sounds coming from Danny Alexander
(Chief Secretary to the Treasury) and even Ed Balls regarding the alternative proposals to
Mansion Tax i.e. an extension to Council Tax Bands.
If this is the case and the ‘devil is not in the detail’ then this will have a far less deleterious
effect on the market. In fact if the council tax bands are extended in a sensible and
progressive fashion, in line with the existing arrangements, there will be a sigh of relief
all around and probably a spike in activity and prices once the first Budget of the new
government is announced.
Markets and sentiments hate uncertainty and frankly it has never
been more important which party is elected in May 2015.
If there is a Conservative government the markets will do very
well indeed but a Labour Party with old Labour socialist instincts
will not bode well for this sector. Q
It is a
mischievous
plot to describe
what is
otherwise a tax
on London’s
wealthy
Trevor Abrahmsohn is
Managing Director of
Glentree Estates
glentree.co.uk
this is just a small selection of highlights from August’s views on PrimeResi.com
there’s more at www.PrimeResi.com/views
p.9

VIEWS
Drivers, Divas & Dictators: A
history of The Wentworth Estate
Surrey’s Wentworth Estate is one of the most valuable residential
enclaves in Britain. It has, as you might expect, had its fair share
of savoury residents since Thomas Telford began developing it in
the 1920s: lifetime local James Wyatt of Barton Wyatt shares his
memories of the Estate’s evolution, from saluting Diana Dors and
Barry Gibb to managing General Pinochet’s cess pit…
Wentworth has been called many things over the years: ‘Exclusive’
‘Estate of the stars’ ‘World renowned’ and so on, but the
story of Wentworth has changed over the years, since it was first developed
by Walter Tarrant in the early 1920’s. Wentworth continues
to evolve today with nearly 50 new houses currently under development,
it’s clear that Wentworth has lost none of its appeal.
Tarrant has often been called a visionary, as the first developer to
construct golf courses with houses dotted around them. His marketing
was aimed at City gentlemen looking for weekend homes not
too far from London with the added lure of a golf club close to your
house. This recipe has since been repeated all over the World.
St George’s Hill in Weybridge which he started developing in 1911
was a resounding success and Tarrant set his eyes on an even larger
prize by purchasing Wentworth in the early 1920’s. The Wentworth
Estate covers 1,750 acres – almost twice as big as St George’s Hill
and Tarrant set about instructing Harry Colt to design the first golf
course – now the East Course and started building houses, albeit
slightly smaller than some of the enormous piles he had built in
Weybridge.
Tarrant also designed and constructed the early parade of shops
in Virginia Water where my office is now. The original plans which
I have show the bank to be where Barclays Bank is, a furniture
shop where Barton Wyatt is, an estate agent where the Wentworth
Patisserie is now, a butcher where the Viceroy Indian restaurant is, a
fishmonger where the Glasshouse is now and beyond that, a greengrocer
which is now an estate agents. All of these modest sized
shops came with residential accommodation behind and above the
shop.
p.10
this is just a small selection of highlights from August’s views on PrimeResi.com
there’s more at www.PrimeResi.com/views

Image courtesy of Waterfords
Indeed, when my grandfather bought the old estate agency
practice of Gosling and Milner in 1965, the offices still had a two
bedroom flat above it which my parents moved into. My bedroom
as a small baby is my office today!
Tarrant went on to construct the West Course, often known as
the Burma Road, which is now used for the BMW PGA Championship
in May.
War time bought a huge change to Wentworth with the Clubhouse
being requisitioned at the outbreak of the war. Soon after,
the infamous but little known tunnels were constructed underground
next to the Clubhouse, for the General Headquarters
(GHQ) Signals. The tunnels were constructed in cast iron in the
same style as the London Underground and were designed to be
the Signals headquarters if there had been a devastating invasion
of London. At the same time, the Clubhouse was occupied as the
GHQ Home Forces who also lived in many of the houses around
the estate. I do wonder whether golf matches carried on as normal?
The tunnels are well guarded these days, although in the 1970’s
my friends and I would often visit them as someone had thoughtfully
chiselled out a hole in the back of the concrete entrance. It
is rather fitting given Wentworth’s story during the war that our
current local MP is the Rt. Hon. Phillip Hammond who was until
recently Secretary of State for Defence.
The estate has seen various changes in the type of homeowner
over the years that I have lived here. In the 70’s glamour, pop stars
and entertainers poured into the estate with Elton John, a couple
of Bee Gee’s, Bruce Forsyth, Chris Squire of the rock band Yes and
Diana Dors all living on the estate. A frequent sight was seeing the
blonde bombshell of Diana Dors driving through the village in her
open top azure blue Rolls Royce with the flowing locks of Barry
Gibb next to her. Similarly, I would think nothing of bumping
VIEWS
A frequent
sight was
seeing the
blonde
bombshell
of Diana
Dors driving
through the
village in her
open top azure
blue Rolls
Royce with the
flowing locks
of Barry Gibb
next to her.
this is just a small selection of highlights from August’s views on PrimeResi.com
there’s more at www.PrimeResi.com/views
p.11

VIEWS
into Elton John in film producer’s Brian Forbes’ book shop in the
shopping parade. Yes, it was perhaps a strange place to grow up.
During the 1980’s the estate filled with a large number of Scandinavian
buyers – particularly Swedish families who had been
hounded out of their country through high taxes. Another resident
was pop star Gary Numan who was fond of shag pile carpet
in his house, not only on the floor but up the walls too. He also
had a private plane that he had crashed parked on his driveway.
During the 1990’s Wentworth was taken over by a number of
golfers, Nick Faldo – who had the slightly unnerving practice of
standing at the far end of the Wentworth driving range with his
instructor David Leadbetter, firing golf balls towards us less able
golfers at the correct end.
Other golfing residents included multiple major winner Sandy
Lyle, Ernie Els, Thomas Bjorn, Wentworth Pro and Ryder Cup
Captain Bernard Gallagher and Sam Torrance.
In the late 1990’s, Chile’s ex-dictator General Pinochet found
himself under house arrest on Wentworth in a house I managed.
By that time, he was a doddery old chap, but could still manage a
game of badminton. The modest four bedroom house was occupied
by at least 12 people – mainly police on three shifts, 24 hours
a day, so it isn’t surprising that our main management issue was
the cess-pit which struggled a bit!
After 2000, we saw the inexorable rise of the overseas buyer
with Wentworth becoming ever more highly sought after. The
Clubhouse itself had been transformed by property tycoon Elliot
Bernard with a new tennis, health, indoor swimming pool and spa
complex being built ensuring that Wentworth was fast becoming
the place to live. Larger houses were built and we saw the first
inflow of the oligarchs from Eastern Europe particularly Russian,
Ukrainian and Kazakhstanis. At the same time, a second international
school opened locally which boosted the number of American’s
living locally by 100%. We also saw a number of Far Eastern
royal families buying locally, drawn not only by the golf but by the
Guards Polo Club and the nearby Farnborough Private Airport.
However, it is worth pointing out that of the less than 600 houses
that line the private roads of Wentworth, the vast majority are UK
owned and occupied.
Today, Wentworth has a wide variety of property in varying sizes
of gardens from well under half an acre to over 10 acres – the
houses being worth anything from £500,000 to over £50,000,000.
The area has a vibrant shopping parade with all the shops currently
occupied – not a scenario that applies to many high streets around
the country at the moment.
This is all a far cry from the days in the early 1920’s when Walter
Tarrant had his vision, and we have him to thank for that. Q
Chile’s exdictator
General
Pinochet found
himself under
house arrest
on Wentworth
in a house I
managed. By
that time, he
was a doddery
old chap,
but could
still manage
a game of
badminton.
James Wyatt is a Partner
in Virginia Water estate
agency Barton Wyatt.
www.bartonwyatt.co.uk
p.12
this is just a small selection of highlights from August’s views on PrimeResi.com
there’s more at www.PrimeResi.com/views

ONLY ON PRIMERESI.COM
The Language
of Luxury:
Designing
for cultural
differences
Understanding and anticipating cultural
differences is a huge part of gaining
a true insight into a client. Only when
these are fully understood, can a home
be created to exceed all their aspirations,
explains Joe Burns… Q
read the full stories on
www.PrimeResi.com
p.13

VIEWS
Letter From the Home Counties:
Turning the wheel on a tanker
There is no doubt that the Home Counties market remains buoyant, says Garry
Collins. The appetite to buy is certainly out there and vendors which bring their
properties to the market at a sensible price are achieving the desired outcome, but the
message of ‘adjustment’ seems to be taking its time to filter to ground level…
simple imbalance of supply and demand, as well as factors including vendor expectations,
agents competing for instructions in a challenging market and of course,
A
bullish media reports, all combined to create a somewhat ‘superficial’ first quarter.
This saw prices pushed beyond many vendor and agent expectations. Year on year,
prices in London rose by as much as 18% in some parts, and this had a ripple effect on
prices here in the Home Counties.
However, it would appear that London buyers are starting to feel that enough is
enough. Over the last month, we have started to see prices stabilise, echoed most recently
by figures released from the Land Registry revealing average house prices held steady
between May and June.
This suggests recent moves to tighten mortgage lending rules, perhaps combined with
the anticipation of an interest rate hike at the end of the year, could have started to cool
the market.
Just like turning the wheel on a tanker, it takes a while for everything to catch up
This is no bad thing; the property market is very adept at coping with periods of
adjustment but, just like turning the wheel on a tanker, it takes a
while for everything to catch up. At present, vendors are still being
influenced by reports of rising property prices and so naturally
want to achieve the best possible price for their home. However,
even in the current market where demand is high, over-ambitious
pricing will only achieve viewings; these won’t necessarily convert
into sales, particularly at the top end of the market where price
rises haven’t been as steep as the middle-market.
There has, however, been a slight rise in sale of properties over
£1million which can be partly attributed to rising prices over the
last six months, pushing more properties over this price bracket. It
could also be linked to more people moving out of the capital after
achieving a top price for their city home. Those buyers looking in
the £1m and above bracket are less likely to rely on financing, and
those that do tend to, have substantial equity, say 50%, therefore
are less affected by the recent Mortgage Market Review. Q
Just like
turning the
wheel on a
tanker, it takes
a while for
everything to
catch up
Garry Collins is Manager
of Waterfords Sunningdale
and Chobham
www.waterfords.co.uk
p.14
this is just a small selection of highlights from August’s views on PrimeResi.com
there’s more at www.PrimeResi.com/views

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REQUIRED READING
The Housing Standards Review:
What can developers expect?
In a drive to simplify the myriad of standards, guidance and
codes that apply to the construction of new homes in the UK, the
government announced in March that current housing standards
are to be reduced by 90% from 100 to around 10 by early next
year. Shelia McCusker explains what the changes could potentially
mean for prime resi developers…
This move – the result of the 2013 Housing Standards Review
consultation – comes as welcome news for the sector, which
hasn’t seen a shift of this scale in decades.
Details won’t be available until the draft regulations and technical
standards are published at some point this summer, but in the
meantime we can chew on the promise that technical standards are
to be consolidated into the Building Regulations and accompanying
Approved Documents. Assessing the technical requirements
will fall to building control – effectively meaning that planning
permission will be granted conditional to compliance.
With the burden of compliance checking migrating to Local
Diagram via DCLG © Crown copyright, 2014. Copyright in the typographical arrangement rests with the Crown
p.16
this is just a small selection of highlights from August’s features on PrimeResi.com
there’s more at www.PrimeResi.com/required-reading

Authority Building Control (LABC) and Approved Inspectors,
the corresponding increase in workload once the new system is in
place will be considerable.
Voluntary assessments like the Code for Sustainable Homes and
Secured by Design will be dismantled and assimilated into Building
Regulations. In an effort to recognise that one size doesn’t fit
all, the government has suggested that the new system will include
flexibility, with local authorities having limited powers to enable
different levels of performance when local circumstances require
it. Optional standards will also be included in relation to minimum
space requirements, targets for renewables (The Merton Rule),
levels of accessibility and requirements of wheelchair-adaptable
housing.
While there is clearly a need for more rational and intelligible system
of standards, what we don’t know is whether or not the consolidation
of standards will really result in the best new housing. The
review covers access, security, water, energy and space, but doesn’t
include standards for daylight and sunlight, or building materials.
With all this in mind, can we identify potential risks or issues for
residential developers or is it too early to tell?
There is already concern that the revised system will improve
the standard of poorer performing developments, but in so doing
set lower targets for the majority of developments. Considering
the changes from a prime or super-prime residential perspective,
certain major elements such as minimum space standards do not
seem particularly relevant, except where developments are of sufficient
scale to attract an affordable housing provision.
But how will the new system play out once implemented? Will
any alternative assessment processes emerge? Will the shift of
responsibility between planning departments and building control
lead to issues further down the line, beyond planning approval?
We can only speculate at this stage, although one likely outcome
is that approved inspectors and building control officers will need
to become involved at an earlier stage of design development. This
is already the case with many prime residential developments
where independent approved inspectors are concerned, but it
is less typical where building regulations compliance is handled
directly by the local authority building inspectors.
As the implementation of the new system unfolds over the forthcoming
months we can expect significant changes in our processes.
From a designer’s perspective we are pleased to see these changes
and believe that, on balance, they will make life more manageable
for the design team. That said, only time will tell whether the
government’s stated objective of consolidating standards without
compromising quality, and in particular sustainability targets, has
been achieved. Q
One likely
outcome is
that approved
inspectors
and building
control officers
will need
to become
involved at
an earlier
stage of design
development
Sheila McCusker is a
Founding Director of
MSMR Architects
msmrarchitects.co.uk
this is just a small selection of highlights from August’s features on PrimeResi.com
there’s more at www.PrimeResi.com/required-reading
p.17

INTERVIEW
Triangle
Group’s
Rick Denton
on buying
Holborn Links
and building
investments
Triangle’s acquisition of the Holborn
Links portfolio – a prized four-acre
swathe of London’s Midtown – has been
one of the biggest deals of 2014 so far.
The development and investment group’s
new CEO Rick Denton talks exclusively
to PrimeResi about how it all came about
and why the capital continues to provide
such great investment opportunities…
p.18
this is just a small selection of highlights from August’s features on PrimeResi.com
there are more interviews & profiles at www.PrimeResi.com/features/interviews

INTERVIEW
Let’s start with the Holborn Links
acquisition in June. Why was this
such an important deal?
At £212.5 million, Holborn Links is the
largest London acquisition we have made
on behalf of our clients to date.
However, more importantly, the site represents
a fantastic investment opportunity
in a part of London that continues to be
underdeveloped and has huge potential.
We were instrumental in scoping the opportunity
and for the strategy to enhance
the quality of the overall site.
The portfolio was acquired on
behalf of Perez International; what
was Triangle’s role and how long
did the process take?
Triangle was responsible for the sourcing
of the investment concept, the scoping
of the development opportunity, the liaison
with investors and for negotiating the
completion particulars. The process took
in excess of nine months, which included
around a six month time period from
exchange to completion.
We hear the portfolio’s future
development will be managed by Triangle
Group. Are there any plans to
develop or increase the residential
element?
The portfolio will indeed be managed
and further developed by Triangle Group
on behalf of its investors. The development
plans are currently under review so
at this stage we are quantifying the extent
to which it may include a more substantial
residential element.
At the time, you mentioned; “this
strategic acquisition is a consequence
of our international clients
seeking to grow their presence in
London.” How would you describe
the current international appetite
for London property?
The appetite from international investors
for both residential and commercial
property in London continues to
be strong. London still represents great
investment opportunities that will deliver
excellent long-term value, in a secure
environment.
Will the Group be looking to acquire
any other similarly high-profile
portfolios or resi sites in the
near future?
Yes. We are always on the look-out for
good investment opportunities that meet
our clients’ investment criteria. There
continue to be a lot of exciting opportunities
in the London market, and beyond.
What type of joint ventures can we
expect to see from the Group over
the next few years? What kind of
partners might you be looking for?
They might not always be joint ventures,
but it’s important for Triangle to continue
to build strong partnerships that allow
us to operate at the highest level. We will
continue to seek partners to support us on
future deals particularly in the property,
legal and financial services sectors. The
evolution of profitable long term investment
partnerships is core to the ethics of
Triangle Group.
this is just a small selection of highlights from August’s features on PrimeResi.com
there are more interviews & profiles at www.PrimeResi.com/features/interviews
p.19

You also moved your HQ to Guernsey;
why did you decide on this
particular spot?
We opened the office in Guernsey to
give our rapidly expanding international
client base greater access to important
foreign markets, and significantly greater
flexibility in structuring their investment
portfolios. Guernsey is a widely-respected
financial centre with a highly sophisticated
legal and regulatory framework. In our
research we also identified that Guernsey
is one of the leading international centres
for the formation of specialist investment
companies and funds.
You’ve headed up some pretty major
operations in the past (Denton’s
former roles have included Head of
International Wealth Advisory for
Barclays Group, Offshore Commercial
Director of Fortis Intertrust
and Executive Vice President for
Bank of Bermuda); where are you
planning to take Triangle Group
over the next five years?
Our strategy is to continue to secure
Triangle’s position as a leading international
investment, development and asset
management group focused on property,
hotels and resorts, and private equity. We
pride ourselves in delivering a unique
partnership with clients to deliver superior
returns from investment projects.
We will always be entrepreneurial in
our approach, and maintain our focus on
client service. In five years’ time Triangle
will still be identifying and converting
the best investment opportunities for its
clients in London; but also we will be operating
in other major international hubs.
Triangle also offers a property
search and acquisition service. Are
you seeing growth in this side of the
business? Where are you seeing most
of the demand originating from?
We’re still seeing strong demand for
property in the residential market,
although not necessarily for pure investment
purposes. This demand is coming
from high net worth individuals from
around the world, and is driven largely
by the common desire to have a foothold
in London. Our aim is to search for and
create innovative product opportunities
including commercial property, developments
and property funds associated with
our knowledge of the London property
market.
How do you foresee London’s residential
property market changing
over the short and long term?
Over the past 10 years there has been an
influx of investment into residential property
market in Central London which has
had well documented consequences on
house prices across London. We believe
that there may be some small amounts of
volatility in the short term but the longer
term outlook will see continued growth.
This is driven by the continuing demand
for London stock amongst the international
wealthy community. Q
this is just a small selection of highlights from August’s features on PrimeResi.com
there are more interviews & profiles at www.PrimeResi.com/features/interviews

ONLY ON PRIMERESI.COM
Crime &
Refurbishment:
How to buy and
develop a former
police site
First image by Leonard Bentley (CC-BY-SA-2.0); second image by Newtown Grafitti (CC-BY-2.0)
Property developers have been paying up
to £10m apiece for ‘under-used’ Met Police
sites like Barnes Green and Connaught
Gardens over the last year, and plenty
more of these are set to hit the market over
the coming months. But how do you turn
such unusual – and often iconic – buildings
into viable apartment schemes? Paul
Reed gives us the lowdown… Q
The ‘Poor Door’ Debate:
Do separate entrances
make practical sense?
There are clearly issues
surrounding how affordable
housing is delivered
in the capital, but the tone
of this ‘poor door’ debate
risks throwing the baby
out with the bathwater,
says Edward Burton… Q
read the full stories on www.PrimeResi.com
p.21

PROPERTIES
Chelsea on Sea
Landmark
Recently confirmed as the UK’s priciest
seaside town, one in three homes in
Salcombe is apparently now worth over
£1m. Tiny plots of land on the waterfront
can go for upwards of £2m, so when an
Edwardian number like this comes up in
one of the best spots on the Estuary, you
can expect a bunfight.
• Sunny Cliff Hotel, Cliff Road,
Salcombe
• Offers Over £4.5m
• Marchand Petit / Primelocation
Images courtesy of agents listed
p.22
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www.PrimeResi.com/properties

Theatre of Dreams
With a previous owner like legendary actor, film and theatre
director and producer Basil Dean of Ealing Studios and ‘Pearl &
Dean’ fame, there was always going to be more to Little Easton
Manor than meets the eye.
PROPERTIES
• Little Easton Manor
• £5m (Guide Price)
• Carter Jonas
Chelsea Power Show
One of the largest homes in all of Chelsea, this
eighteen-bedroomed beauty stands on the
grounds of the former Coleherne House, the
famed residence owned by the Tattersall family
and later the Victorian actor-playwright-manager
Dion Boucicault.
• 6 The Boltons
• £39.5m
• Russell Simpson
Prime Online
Claiming to be the first country estate to
be marketed through an online agent, this
19th century manor house is causing quite
the stir.
• Coolham Manor
• £5.5m
• Sellmyhome.co.uk
p.23

PROPERTIES
Inside the world’s
most expensive
penthouse
The world’s most expensive penthouse
– £240m – has been unveiled in
Monaco. It has a waterslide to link the
dancefloor to the pool.
Taking over the top five storeys of the
Tour Odeon tower on Av. de l’Annonciade,
the five bed 35,000 sq ft apartment
is one of 73 private residential
units in the first high rise to be built in
the principality since the Eighties.
Prince Albert of Monaco has had more
than a hand in the project, personally
giving the go-ahead to the the 557
foot, 49 and 44-storey towers in 2009,
overturning his papa Prince Rainier’s
embargo on high rises.
Knight Frank is handling the penthouse
sale, and expects to bring in
€300m, which the agency says would
make it the most pricey top floor on
Earth. The Tour Odeon’s developer,
Daniele Marzocco’s Groupe Marzocco
SAM, is confident that”we can get a
little bit more.”
James Price, Knight Frank: “These
duplexes and the penthouse are set to
catch the eye of those looking for the
very best properties across the world’s
leading markets.” Q
All images courtesy of Tour Odeon /
Groupo Marzocco
p.24
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www.PrimeResi.com/properties

:DECONSTRUCTED:
Tour Odeon, Monaco
• Developer: Groupe Marzocco
PROPERTIES
• Sales Agent: Knight Frank
• Architect: Alexandre Girald
• Interiors: Alberto Pinto Agency
• Construction (general): Vinci
• Finance: SCI Odéon, Claudio
Marzocco
• www.odeon.mc
p.25

PROPERTIES
Amazon builds
Soho portfolio
with office block
acquisition
Luxury residential developer Amazon
Property has bought a 20,500 sq ft office
block in the middle of Soho.
Swan House, 52 Poland Street is currently home to seven floors of offices with Yo!
Sushi and Lucky Voice karaoke bar taking up the ground and basement levels. The
building is just 300 metres from the new Tottenham Court Road Crossrail station.
The developer has some rather good form in office-to-resi conversions, including
turning the old Paramount Studios HQ, round the corner from Poland St on
Wardour St in Soho, into 15 high spec apartments.
Amazon Property in a JV will acquire the freehold of the building at 51% ahead of
the March 2014 book value, at a Net Initial Yield of 2.5%.
CGIs courtesy of Amazon Property;
photograoh courtesy of British Land
p.26
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www.PrimeResi.com/properties

PROPERTIES
Tim Roberts, Head of Offices, British
Land: “The expiry profile at 52 Poland
Street means there is potential for
vacant possession of upper parts in June
2015. The site attracted very strong interest,
reflecting the strength and depth
of the WE investment market. It is an
opportune time to sell and focus on
projects elsewhere in our portfolio.”
Chris Lanitis, Partner, Amazon Property:
“The acquisition of 52 Poland
Street is an exciting addition to Amazon
Property’s rapidly expanding portfolio
and signifies our wider drive to obtain
well-located London sites. The building’s
trophy address and expansive
internal space presented the perfect
opportunity to deliver more of our
signature, luxury apartments and penthouses
to the market. Amazon Property
has firmly established itself as an office-to-resi
specialist, with a number of
successful schemes across Zones 1 and
2. 52 Poland Street promises to continue
this achievement and we look forward
to securing vacant possession of the first
to seventh floors and starting work in
June next year.”
CBRE and Irwin Mitchell advised
British Land. Amazon Property was
unrepresented. Q
p.27

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