London's Chelsea Barracks Homes Said to Sell at 200% Premium

Qatari Diar Real Estate Investment Co. has sold almost 30 homes at its $4.3 billion Chelsea Barracks project in London before the properties are offered to the wider market later this year, according to a person with knowledge of the matter.

Buyers agreed to pay the equivalent of about 4,500 pounds ($6,500) a square foot, said the person, who asked not to be identified because the information is private. That compares with an average price of about 1,500 pounds a square foot for homes sold in central London’s best districts in March, according to data compiled by broker Huntly Hooper Ltd. Qatari Diar and officials at Knight Frank LLP and Savills Plc, who are brokering the sales, declined to comment.

A joint venture paid 959 million pounds for the 5.3 hectare (13-acre) site in January 2008 and Qatari Diar, part of the nation’s sovereign wealth fund, later took full control of the project. A unit of the fund won local-government approval in 2011 to develop almost 450 homes, stores, a health center and leisure facilities on the land. An earlier plan was dropped after it was opposed by Prince Charles.

The project, due to be finished in 2024, will be valued at 3 billion pounds, according to the website of RLF, a health and safety consultant for the project. A model home may open as soon as next month, the person said.

Home prices in Chelsea fell 2.5 percent in the year through March, according to a report compiled by Knight Frank. Values of homes across the capital’s best districts rose 0.8 percent in the same period, the data show.

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