Indian billionaire Ravi Ruia acquires Rs 1, 200 crore London mansion linked to Russian investor

Indian billionaire Ravi Ruia acquires a 113 million-pound (Rs 1,200 crore) London mansion previously linked to Russian property investor Andrey Goncharenko.

Team Newsable

First Published Jul 22, 2023, 2:33 PM IST | Last Updated Jul 22, 2023, 2:33 PM IST

Indian billionaire Ravi Ruia has made a significant investment in the London property market by purchasing a 113 million pounds (Rs 1,200 crore) mansion with ties to Russian property investor Andrey Goncharenko. This acquisition marks one of the largest residential deals in recent years in the UK capital. Ravi Ruia, co-owner of the Essar Group investment firm, completed the purchase of the Hanover Lodge mansion situated at 150 Park Road, overlooking the picturesque Regent's Park. The transaction was executed through the sale of the property's Gibraltar-incorporated holding company, according to reports.

Interestingly, the mansion was formerly owned by Andrey Goncharenko, who served as the former deputy chief executive officer of Gazprom Invest Yug, a subsidiary of the Russian state-run energy firm Gazprom. Goncharenko acquired the outstanding lease of the property from Rajkumar Bagri, a Conservative Party peer, for 120 million pounds in 2012. This change in ownership makes the recent purchase by Ravi Ruia's family office a notable event in London's luxury real estate market.

According to William Rego, a spokesperson for the Ruia family office, the Hanover Lodge mansion is currently under construction and presented an attractive investment opportunity for their family office. The deal was originally reported by the Financial Times, further highlighting the significance of the acquisition in the property market.

The luxury property market in London tends to attract buyers who rely less on debt, particularly with high-interest rates reducing borrowing incentives. A report from broker Knight Frank revealed that about 17 per cent of individuals globally with a net worth of 30 million dollars or more purchased at least one home last year. However, despite the attempt to bring more transparency through a register for overseas entities launched by the UK last year, secrecy still persists in London's ultra-prime property market.

Russia's invasion of Ukraine has led the UK government to take measures to improve London's reputation as a haven for oligarchs close to Vladimir Putin. However, it is worth noting that Goncharenko, the former owner of the mansion, is not among the targets of sanctions imposed on wealthy Russians. Tougher regulations requiring overseas companies to declare beneficial owners or face potential prosecution have had mixed success, as luxury homes continue to change hands without full public disclosure. Off-market transactions are increasingly prevalent, with a record share of London homes being sold off-market in the final quarter of last year, particularly among the city's priciest properties.

Withers, a law firm, played an advisory role in facilitating the deal for the Ruia family office. Despite attempts to reach Goncharenko for comment, Bloomberg was unable to get a response. The acquisition of the Hanover Lodge mansion by Ravi Ruia adds another chapter to the captivating story of the high-end property market in London, with its allure continuing to attract attention from investors and buyers worldwide.

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