London’s The Whiteley launched at average price of GBP3,600 psf, with Singapore as its first international stop
By Cecilia Chow & Timothy Tay
/ EdgeProp Singapore |
The historic facade of The Whiteley, built in 1911 (Picture: Finchatton)
SINGAPORE (EDGEPROP) - The Whiteley is a GBP1.5 billion ($2.5 billion) transformation of a historic art deco building, the former Whiteleys shopping centre at Bayswater, West London. Designed by global architectural studio Foster + Partners, The Whiteley is a million sq ft, mixed-use development with 139 luxury apartments, 20 shops and restaurants, as well as the UK’s first Six Senses hotel with 110 rooms, a spa and wellness themed private members’ club.
The luxury residences were launched for sale in the UK last November, with a phased international rollout, starting with Singapore and Bangkok in June. Next in Asia is Kuala Lumpur, with Hong Kong, Beijing and Shanghai in the pipeline, when their markets reopen, says Alex Michelin, co-founder of London-based real estate developer Finchatton, the appointed development manager of The Whiteley.
The restored rotunda of the Grade II listed The Whiteley, where the original structure was built in 1911 (Picture: Finchatton)
Finchatton’s latest flagship development is Twenty Grosvenor Square at Mayfair, which debuted in 2019. A historic building that was once the headquarters of the US Naval Forces in Europe, and prior to that, a home to royalty, prime ministers, actors, musicians and artists, Twenty Grosvenor Square has 37 three- to five-bedroom apartments with services and amenities provided by Four Seasons Hotel and Resorts. It is the first standalone Four Seasons Private Residences.
Now, Finchatton is involved in the development of The Whiteley as part of the consortium with Hong Kong property group CC Land and private equity real estate investment manager Mark (formerly known as Meyer Bergman). The Whiteley is a new development that will see the facade of the Grade II listed building restored. Built in 1911, it opened as Whiteleys, London’s first department store, which at its height, had a cinema and golf course on its roof. It was on a par with Selfridge’s, Harrods and Liberty.
In 1989, Whiteleys re-opened as a shopping centre but it never really got off the ground as a retail destination. Mark purchased Whiteleys in a joint venture for GBP115 million in 2013, with plans to redevelop the property. Finchatton was appointed development manager in 2018, given its success with Twenty Grosvenor Square. CC Land came on board in December 2019. “We’re running the project while CC Land and Mark are the equity investors,” explains Finchatton’s Michelin.
Eighty nine out of the 139 apartments at The Whiteley will come with private terraces (Picture: Finchatton)
‘Game-changer’
Apartments at The Whiteley range from studios of 418 sq ft all the way to five-bedroom apartments of 5,665 sq ft, and penthouses of 3,588 to 9,256 sq ft. Every apartment will have a different layout, with ceiling height ranging from 2.7m to 6.1m. Eighty-nine of the 139 apartments will have outdoor terraces. “Every apartment at The Whiteley is utterly unique,” says Michelin. “From one-bedroom apartments to duplexes and vast palatial penthouses, each provides one of the city’s most exciting opportunities for modern living.”
These apartments are priced at an average of GBP3,600 psf, with the smallest units starting from $2 million. “The project has achieved about GBP250 million worth of sales, with another GBP50 million still under offer,” says Michelin.
Until recently, psf prices at Bayswater have been held back due to the uncertainty surrounding Whiteleys shopping centre, a failing shopping mall even before Mark, CC Land and Finchatton bought it, says Michelin. It occupies an entire block of Queensway, the high street of Bayswater.
Part of the rejuvenation of Queensway includes closing one of the lanes on the road and widening the pedestrian footpath as well as adding new gates to the entrance of Hyde Park (Picture: Finchatton)
The redevelopment of Whiteleys was the catalyst for other landowners on the street to redevelop their own properties too, adds Michelin. Together, these landlords formed the Queensway Joint Steering Committee to lead the rejuvenation of Queensway. The total amount of investment going into Queensway is close to GBP3.5 billion, he notes. This includes regenerating the area, upgrading the two tube stations nearby, adding new gates to the entrance to Hyde Park, and converting the two-lane road to one lane to make the entire street more pedestrian-friendly. “The transformation taking place is a game-changer for the area,” says Michelin.
Indeed, led by the Queensway Joint Steering Committee, the much-talked-about reimagination and development of Queensway is underway, says Alexander Lewis, partner of Knight Frank Residential Development Consultancy. “It’s the linchpin, the final part of the Bayswater jigsaw, and one that will link the vibrancy of Notting Hill to Marylebone and Mayfair,” he comments in a W2 report by Knight Frank. Incidentally, Knight Frank and Savills are the joint marketing agents for The Whiteley.
Trading at a discount
According to Finchatton sales director Charles Leigh, the most expensive residential addresses in London or the golden postcodes are those surrounding the 142ha (350-acre) Hyde Park, namely Belgravia, Marylebone, Mayfair, Kensington and Knightsbridge. New apartments there are generally priced in the GBP4,000 to GBP6,000 psf range. “Bayswater is currently trading at GBP2,500 to GBP3,500 psf,” says Leigh. “You’re looking at a potential GBP1,000 psf growth in the next 18 months or even conservatively, in three years.”
Charles Leigh (left) and Alex Michelin: Every apartment at The Whiteley is utterly unique. From one- bedroom apartments to duplexes and vast palatial penthouses, each provides one of the city's most exciting opportunities for modern living (Photo: Albert Chua/EdgeProp Singapore)
Knight Frank Research analysis shows that average sales prices in W2 stood at just over GBP1 million in 2020, some 22% lower than average values in neighbouring Notting Hill, and more than 70% lower than in Kensington and Knightsbridge, the other park-adjacent neighbourhoods.
In Bayswater, with the exception of the Lancasters, schemes to date have largely been small-scale period hotel or office conversions with psf values of between GBP1,750 and GBP2,000. “Bayswater at W2 sits on the north of Hyde Park and properties there currently trade at a discount compared to some of the other surrounding prime central London locations,” notes Nicholas Keong, head, private office, at Knight Frank Singapore.
“The Whiteley therefore presents a rare opportunity for high-end buyers looking for a trophy home with a prime central London address in a regeneration scheme and at a more affordable entry price relative to those at the golden postcodes,” adds Keong. Central London housing prices are projected to grow by 22.8% over the next five years, from 2022 to 2026, according to Knight Frank Research.
Apartment entrance - apartments hace ceiling height from 2.7m to 6.1m (Picture: Finchatton)
The Lancasters was launched at the same time as One Hyde Park, recounts Ian Pidgeon, director of Savills Residential Development in London. “At that time, a flat at One Hyde Park facing the park would cost you GBP5,500 psf or more. And at The Lancasters at W2, you could buy a flat facing the park for GBP2,500 psf. That was 12 years ago when we were selling those properties.”
However, since then, there hasn’t been any other scheme of that calibre until now, notes Pidgeon. “And suddenly, you’ve got The Whiteley at Queensway, W2, which sits between Notting Hill and Mayfair. It’s quite exciting,” he says.
‘Diminishing supply’
Opportunities to buy into a redevelopment of such grandeur and scale as The Whiteley are very rare, adds Pidgeon. “There is a rapidly diminishing supply of best-in-class new residential developments coming through over the next few years within prime central London.”
Reception room of one of the apartments, where each apartment will have a different layout (Picture: Finchatton)
That explains why prices of such luxury developments are setting new benchmarks. Last November, a four-bedroom duplex at The OWO was sold for a record GBP11,000 psf. The property is in a Grade II listed Edwardian building opposite Horse Guards and designed in 1906 by British architect William Young. The building will see Raffles Hotel branded residences, with AccorHotels Group in partnership with Raffles Hotels & Resorts.
Another game-changer is the debut of the UK’s first Six Senses hotel and spa at The Whiteley, says Jacqueline Wong, Savills Singapore executive director, residential services. “It offers a holistic range of health and wellness amenities.”
Indeed, Wong is not surprised that the Six Senses brand carries a certain cachet. After all, she has marketed similar properties, for instance Bulgari Residences at Bulgari Resort Bali, Twenty Grosvenor Square featuring Four Seasons Residences, as well as Ritz-Carlton Residences and St Regis Residences in Singapore.
The Six Senses 20m by 9m infinity pool (Picture: Finchatton)
The luxury offerings at The Whiteley will be elevated by the services and facilities offered by the Six Senses hotel and spa. “Residents at The Whiteley will enjoy a suite of services from the on-site, hospitality-trained concierge team from Six Senses, as well as exclusive membership access to the Six Senses spa and treatment facilities within the building,” says Neil Jacobs, CEO of Six Senses.
The hospitality group is also incorporating a new social and wellness club called Six Senses Place, and the space will serve as an area for residents and members to recharge, meet friends and work. Wellness treatments include massage and sound bath meditation rooms. Six Senses will also manage other facilities within the building such as the 20m indoor swimming pool, fitness centre, gym, private cinema and games room. In all, there will be 60,000 sq ft of residents’ amenities.
Other on-demand hospitality services available to residents of The Whiteley include housekeeping, apartment maintenance, grocery stocking, childcare services, event planning and pet care, says Jacobs.
The restaurant at the Six Senses Hotel (Picture: Finchatton)
‘Investment value’
Six Senses has also played an instrumental role in the interior design of The Whiteley and lent its expertise in biophilic design to the project. “The point was not to recreate a heavy, traditional Victorian approach in the interior design of the space, but instead respect the elements of history of the building and transform it into a breathable space built with natural materials,” says Jacobs. “The key for us was to create a sense of community that is set in a modern expression of luxury. The use of natural materials is not typical or expected in most ultra-luxury developments, but this approach plays well into our approach towards sustainability.”
Apartments at The Whiteley will be fitted with B&B Italia kitchens, Wolf appliances and SubZero refrigerator. Bathrooms will feature customised wall and floor tiles from Ann Sacks, with taps, shower and bathroom accessories from British brand Samuel Heath. The Whiteley is scheduled to be completed sometime in late 2023 to early 2024.
Directly opposite The Whiteley, Finchatton is also involved in the development of a new office tower with 130,000 sq ft office space. “This will bring life to the area, with people coming to shop and eat,” says Michelin. “The whole area will be pedestrianised and shopper-friendly.”
Directly opposite The Whiteley, Finchatton is also involved in the development of a new office tower with 130,000 sq ft office space (Picture: Finchatton)
The Whiteley is located just two blocks from Hyde Park, as well as a short walk from Bayswater and Queensway tube stations, which are on the Central and District lines. It is also a six-minute walk to Paddington station, where the new Elizabeth line service, which is part of the Crossrail, will bring commuters to Heathrow Airport in 20 minutes, as well as to Canary Wharf and Bond Street.
“London has always been an attraction for global wealth,” says Savills’ Wong. “And The Whiteley offers a unique opportunity to invest in a piece of history,” she adds. This is especially so, with the pound sterling-Singapore dollar exchange rate at a historical low of 1.68. “It offers an attractive buying opportunity, with potential for capital upside,” notes Wong.
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