Bloomberg News

Heron Said to Seek $30 Million for City of London Penthouse (2)

December 05, 2013

The Heron Residential Skyscraper

The Heron residential skyscraper, a development by Heron International Ltd., stands in the City of London financial district in London. Source: Heron International Ltd. via Bloomberg

Heron International Ltd. will seek 18 million pounds ($30 million) for a penthouse in its residential skyscraper in the City of London financial district, a person with knowledge of the matter said. A sale at that price would be a record for the neighborhood, according to broker Savills Plc. (SVS)

The 6,000 square-foot (557 square-meter) apartment is one of two penthouses in the 36-story building known as the Heron that will be put on sale next month, said the person, who asked not to be identified because the information is private.

The smaller of the Heron’s penthouses will have a minimum price of 12 million pounds, Commercial Director Lisa Ronson said in an e-mail. She didn’t give an asking price for the larger apartment, which has 4 bedrooms, a retractable roof and space for a gym and screening room.

Central London home prices will gain about 23 percent through 2018, extending a five-year rally, according to London-based Savills. Luxury-home developers plan to build more than 20,000 properties in London during the next decade, consulting firm EC Harris LLP said in a Nov. 24 report.

Carlyle Group LP (CG:US) won local-government approval in October to build a 558-foot tall tower on the south bank of the River Thames opposite St. Paul’s Cathedral. Ryan Corporation U.K. Ltd. plans to build a 794-foot residential tower in the Canary Wharf financial district that would be London’s highest.

Foreign Buyers

Foreign investors are driving price increases and development in London’s most sought-after neighborhoods. South Asian buyers account for two-thirds of new homes sold before completion in the capital, according to Land Securities Group Plc, the largest U.K. real estate investment trust.

Chancellor of the Exchequer George Osborne today said he will impose capital-gains taxes on “future gains” from home sales made by people living outside of the U.K. starting in April 2015. Capital gains tax rates for second homes sold by U.K. residents currently range from 18 percent to 28 percent.

More than 93 percent of the apartments in the Heron have been sold, Ronson said. Apartments on the lower floors were put up for sale for 495,000 pounds. Alan Selby & Partners LLP, CBRE Group Inc. (CBG:US) and Jones Lang LaSalle Inc. (JLL:US) are the brokers for the tower, which is less than a mile from the Heron Tower office building.

To contact the reporter on this story: Patrick Gower in London at pgower@bloomberg.net

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


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Companies Mentioned

  • CG
    (Carlyle Group LP/The)
    • $33.21 USD
    • 0.36
    • 1.08%
  • CBG
    (CBRE Group Inc)
    • $32.55 USD
    • -0.08
    • -0.25%
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