Qatari Diar puts Chelsea Barracks on hold
Luxury London property development stalled as Qatari developer considers options after UK economic data released
Concerns over the UK economy have halted the Chelsea Barracks project.
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Qatari Diar has put its largest investment in London on hold due to concerns about the British economy, sources have said.
In a report by The Guardian, a Qatar source said that the $4.74bn Chelsea Barracks housing development was under review and that various options were being considered. These included going ahead with the project or selling the site without building up the planned development of 450 luxury homes and 123 affordable homes, the source said.
“It now seems a huge gamble to deliver all of this,” a Qatari source told the Guardian. “The developers will take their time and see how the numbers stack up in due course.”
Qatari Diar, the country’s property arm, said that it had planning permission for the scheme, which would includes seven-bedroom mansions, as well as one-bedroom flats. However, the developer is now rethinking the project as the latest UK economic data shows Britain heading towards a triple-dip recession, the newspaper said.
Qatar has been ranked as the richest country in the world per capita and already has several real estate investments in the UK capital, including 80% of The Shard, the tallest building in Western Europe. It also owns all of Harrods and the US Embassy in Mayfair. It is also the joint owner of the Olympic Village and the Shell Centre.
However no office lettings have been announced for The Shard as concerns about future demand for luxury London homes grow. The risk associated with investing further into construction in a stagnant economy has raised concerns in Doha, the paper said. Furthermore, the economic data compounded fears that Qatar overpaid when it bought the site for $1.5bn in 2007, from the Ministry of Defence.
“The strategy is under review,” a Qatari Diar spokesperson said when contacted by the paper. “The developer is taking advantage of the opportunity to review and respond to the context of the prevailing economic environment in preparing for the next stage of the development.”
