Bloomberg News

Heron Seeks Record Prices for Apartments in London Tower

October 25, 2011

(Updates with average price in second paragraph.)

Oct. 25 (Bloomberg) -- Heron International will seek what it says are the highest residential property prices ever charged in the City of London financial district in a 36-story building that’s due to be completed in 2013.

Homes in the Heron, the tallest apartment tower to be built in the City since 1976, will be offered for about 1,600 pounds ($2,557) a square foot, according to Lisa Ronson, the U.K. developer’s commercial director. That’s more than double the average price in London, which was 734 pounds a square foot, according to a study published by Jones Lang LaSalle Inc. in May. Prices in the luxury glass and steel building are being bolstered by demand from foreign buyers, Ronson said by phone.

“We’ve had a good overseas response,” she said. “Buyers are looking for an investment or somewhere for their children to live when they go to university.”

Affluent overseas investors are buying London residential real estate as a haven from economic and political turmoil. They comprise about 65 percent of the market for homes costing more than 5 million pounds, according to a survey published earlier this month by real-estate broker Savills Plc.

Home prices in the City of London typically range from 650 pounds to 1,350 pounds a square foot, according to Neil Chegwidden, residential research director at Jones Lang LaSalle Inc. Luxury home prices in central London climbed 11.4 percent in September from a year earlier, Knight Frank LLP said in a report last month. That was the biggest gain in 11 months.

Market’s Rally

Heron International is seeking 5.25 million pounds for a 3,279-square-foot (305-square-meter) apartment on the 33rd floor of the Heron, Ronson said. The London-based developer has sold more than two thirds of the 285 units in the building, which is less than a mile from the Bank of England. The tower’s two penthouse apartments haven’t been valued, she said.

The Heron is about half a mile from the developer’s 46- story Heron Tower office building. The property will have a height of 112 meters (367 feet) and will also include an arts performance center.

The brothers Christian and Nick Candy set the record for residential real-estate prices in all of London with the sale of six apartments at One Hyde Park, the luxury-condominium complex in the Knightsbridge neighborhood. Nick Candy said units sold for around 6,000 pounds a square foot last year. He declined to give their size.

--Editors: Jeff St.Onge, Andrew Blackman.

To contact the reporter on this story: Chris Spillane in London at cspillane3@bloomberg.net.

To contact the editor responsible for this story: Andrew Blackman at ablackman@bloomberg.net.


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