London mansion linked to Russian investor Andrey Goncharenko sells for £113mn

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Indian billionaire Ravi Ruia has purchased a £113mn mansion in London’s Regent’s Park linked to Russian property investor Andrey Goncharenko, in an off-market deal that underlines the persevering with secrecy across the gross sales of Britain’s most costly properties.

The household workplace of Ruia, who co-owns the Mumbai-based Essar Group, purchased Hanover Lodge this month via a sale of the property’s Gibraltar-incorporated holding firm, in keeping with a number of individuals with data of the transaction. 

The personal sale has closed at a time when UK lawmakers try to enhance transparency round property possession. Russia’s invasion of Ukraine has additionally prompted them to attempt to reverse the capital’s repute as a haven for oligarchs near Vladimir Putin, the Russian president.

Goncharenko — the previous deputy chief govt of Gazprom Make investments Yug, a subsidiary of the state-backed Russian utility — purchased the Regency property’s excellent lease in 2012 from Conservative peer Raj Kumar Bagri for £120mn, in keeping with one particular person concerned within the deal and Land Registry data.

Land Registry property data present the leaseholder, a particular function car named Inexperienced Palace Gardens Restricted, has not modified for the reason that 2012 buy. Goncharenko was the final word proprietor of the property as lately as two years in the past, one other particular person with direct data of the scenario instructed the Monetary Instances.

The Gibraltarian SPV registered with Corporations Home in January. The useful proprietor is listed as a Cypriot belief, Proteas Trustee Providers Ltd.

The sale to Ruia didn’t end in a change in Hanover Lodge’s lengthy lease, which runs till 2161, in keeping with Land Registry data. The freehold is held by the Crown Property, the British monarchy’s multi billion-pound legacy portfolio of land and property holdings, which additionally owns lots of the flats and homes in and round Regent’s Park.

A spokesperson for the Ruia household workplace, which was suggested on the deal by the regulation agency Withers, stated: “The topic property within the UK is underneath building and have become obtainable at a worth which makes it a pretty funding for the household workplace.”

Each the household workplace and Withers declined to offer any counterparty particulars. The FT was not capable of attain Goncharenko for remark. A lawyer who labored on the registration of the Gibraltarian SPV declined to touch upon its proprietor.

The two,400 sq. metres mansion at 150 Park Street, which was as soon as the residence of the French ambassador to the UK, turned the costliest publicly identified asset in Goncharenko’s London portfolio. Goncharenko, who isn’t the goal of sanctions put in place following Russia’s invasion of Ukraine, additionally beforehand purchased two different properties in Hampstead and Belgravia, in keeping with press stories.

Worldwide patrons have in current many years dominated the marketplace for London’s most costly properties thanks partly to the UK capital’s property legal guidelines and the likelihood to buy properties discreetly.

However London’s high-end property market has come underneath higher scrutiny for the reason that UK authorities launched legal guidelines final yr that require offshore firms that personal property in England and Wales to call their final proprietor in a register of abroad entities.

The success of this initiative has been combined. Luxurious London actual property continues to be altering fingers with out the id of each purchaser and vendor changing into identified to the general public.

Hanover Lodge, a grade II* listed constructing overlooking Regents Park, was constructed round 1827 and designed by John Nash, the architect behind what would turn into Buckingham Palace. It homes a gymnasium, a sauna and a gallery in addition to lodging for in-house employees and a swimming pool that may be transformed right into a ballroom. 

The mansion’s new proprietor, Ruia, made his fortune via constructing the Essar conglomerate, which he based greater than 50 years in the past along with his brother Shashi Ruia. The worldwide enterprise has $8bn in belongings underneath administration and owns firms in sectors together with steel, mining, infrastructure and power. 

The costs of properties in areas that sometimes appeal to abroad patrons — resembling Mayfair, Westminster and Marylebone — have been extra resilient within the second quarter of this yr than in different neighbourhoods resembling Richmond and Holland Park, that are extra related to home patrons, in keeping with property company Savills.

Extra reporting by Chris Prepare dinner in London and Max Seddon in Riga