Churchill’s former London office to be site of Raffles’ first branded residences in Europe
- Raffles, widely known in Asia for the luxury Raffles Singapore Hotel, was tapped by the Anglo-Indian Hinduja Group to manage the property
- The Old War Office was responsible for the administration of the British Army between 1857 and 1964
Hongkongers can now own a property in one of London’s most iconic historical buildings, once the office of former British prime minister Winston Churchill, with a price tag of at least 5.8 million pounds (US$8.18 million) for a two-bedroom flat.
The Old War Office building – responsible for the administration of the British Army between 1857 and 1964 – has been under renovation for the past five years, and will now become The OWO Residences by Raffles, the company’s first branded residences in Europe.
Raffles, widely known in Asia for the luxury Raffles Singapore Hotel, was tapped by the Anglo-Indian Hinduja Group to manage the property, which comprises 85 homes and a separate 125-room Raffles Hotel. The Hinduja Group is owned by the UK’s third-wealthiest family.
“We had been searching for the right location in London for a long time, so when the opportunity arose with the Old War Office building to create a flagship Raffles hotel with spectacular branded residences, it was an easy decision to make,” said Jeff Tisdall, senior vice-president of residential development at Accor, which manages Raffles. “The architecture, the heritage of the building and its location on Whitehall naturally lent itself to being a Raffles.”
The Old War Office building, a Whitehall landmark with an Edwardian Baroque exterior, was used by Sir Winston Churchill, David Lloyd-George and John Profumo among many other British War Secretaries. James Bond author Ian Fleming took inspiration from the building for many of his spy novels.
The project, which will be completed in 2022, is near the 57-acre St. James’s Park, and residents and hotel guests will only be a short stroll from Buckingham Palace, The National Gallery, The Tate and The Royal Academy. It is also within the vicinity of famous shopping areas such as Regent Street, Bond Street and Jermyn Street.
Given the affinity of many Hongkongers for the UK, the developers are hoping for strong interest from the city.
“Hong Kong is a crucial international market for us as we believe there will be a lot of interest from Hong Kong buyers wishing to acquire a piece of British history in the heart of Whitehall, so it was important that we launch in the Hong Kong market at the earliest opportunity,” said Charlie Walsh, head of residential sales for The OWO Residences.
Hongkongers have always been significant buyers of property in London. In 2020, the French were the top foreign buyers of prime real estate in central London, accounting for about 14.6 per cent of sales – with Hong Kong, mainland China and the US accounting for about 8.5 per cent of sales each, according to Knight Frank.
Since July, when the UK announced an easier path to citizenship for the residents of its former colony, Hong Kong residents have bought 1,932 units, or 4 per cent of London homes, worth 959 million pounds, according to an estimate by property agency Benham and Reeves.
Although the branded residences segment is relatively new in the UK, agents believe that they offer good investment value to potential buyers.
“While any return on an investment is widely dependent on location, branded residences are estimated to command a premium as high as 30 per cent,” said Widya Lestaluhu, head of Benham and Reeves Hong Kong. “These branded residences have proved very popular among international ultra high-net-worth investors, Hong Kong included.”
Popular branded residences in the UK include the Residences at Mandarin Oriental Mayfair by Clivedale, Lodha Grosvenor Square and St James Square and the upcoming South Audley Street, owned by British billionaire businessman John Caudwell, added Lestaluhu.
A branded residence unit is unlikely to be the primary address of many buyers, according to Knight Frank.
“It offers the service, security and amenities one would expect from a six star hotel, but is still a private space that feels like home and can be returned to time and again,” said Rupert des Forges, head of prime central London developments at Knight Frank.
