The Moscow Times

1 March 2005

It was designed with a rich Arab buyer in mind, but times have changed. Chances
are high that Britain's most expensive property will be bought by a Russian.
Dubbed the first stately home to be built in the United Kingdom in more than
three centuries, Updown Court, which goes on sale this week for over ?70 million
($135 million), is also the most expensive property ever to hit the British real
estate market.
In addition to 103 rooms in four principal buildings, the 23-hectare estate,
whose grounds are larger than those of royal residences Buckingham Palace and
Hampton Court combined, features five swimming pools, a private cinema, a heated
marble driveway, a bowling alley, a tennis court, a garage for eight limousines,
and a stable for six horses, as well as a state-of-the-art security system and a
panic room against terrorist attacks.
"We have incorporated everything you can think of or that anybody can want. This
is truly a mansion of the 21st century -- there is nothing like this house
available," said Leslie Allen-Vercoe, the developer behind the property, in a
telephone interview from London.
Located in the village of Windlesham in Surrey, 45 kilometers from central
London, Updown Court is at the heart of the so-called Golden Triangle, which has
the country homes of such well-known figures as Queen guitarist Brian May and
the family of Dubai Sheik Rashid Al Maktoum.
"The original design was very much Arabic six or seven years ago, when we
started work on Updown Court," Allen-Vercoe said. "Arabs were major players on
the real estate market back then."
But as Russians were rapidly reaching new heights on Forbes' billionaire list
and the likes of Roman Abramovich were becoming household names in England,
plans were altered.
"It is European-style now. We took out some Arabic, Disneyland-like elements,
allowing us to save a lot on excess marble and gold," Allen-Vercoe said.
Allen-Vercoe, who has extensive connections among Russia's elite -- going back
to 1988, when he was working with the Soviet oil and gas ministries, and later
with companies such as LUKoil and Gazprom -- said that already "three or four
serious potential Russian buyers" had looked at Updown Court and "six more were
waiting to be told when it comes on the market."
According to Knight Frank calculations, in 2004, Russian nationals accounted for
almost 6 percent of the value of London deals done by the realtor -- the biggest
percentage of any single country. The company's London office even had to hire
Russian-speaking staff to accommodate the growing demand.
Russians currently control just 2 percent of London's elite housing market, but
as far as super-expensive properties costing ?5 million ($9.6 million) or more,
they account for as much as 17 percent of all deals, said Ekaterina Thain,
director of elite residential real estate at Knight Frank.
"England attracts Russian businessmen because it is currently fashionable to buy
property there and because it is a safe investment of significant funds," said
Konstantin Kovalyov, managing partner at the realtor Blackwood.
"Many look at it as an investment asset, capable of significant returns," he
added.
"Updown Court will be absolutely perfect for Russian buyers. That's exactly what
they are looking for," said Kim Waddoup, director at International Property
Consultants. "They are basically buying prestige."
The Russian presence in England has been steadily growing in the last two or
three years, and Russians are now among the "top four" buyers in the country,
along with Americans, Arabs and Hong Kong Chinese, he added.
Allen-Vercoe refused to name any of the Russians potentially interested in
Updown Court, but said that they were all "household names," chiefly working in
the oil and gas sector, as well as in metals.
When asked what percentage of prospective buyers came from the former Soviet
Union, Allen-Vercoe said they accounted for roughly 50 percent of the demand.
"We also had two parties from China, three or four from the Middle East and one
Australian look at the property," he said.
Allen-Vercoe stressed that while Updown Court could be used as a family's
country home, it could also make an ideal corporate center or an ambassador's
residence.
"Tell Mr. Putin that I invited him to come take a look," Allen-Vercoe joked,
adding that representatives of a "former Soviet country" are already considering
acquiring Updown Court for their ambassadorial residence.