A Kensington mansion has become the capital’s latest luxury property to go up for sale in insolvency proceedings as wealthy London homeowners face their assets being liquidated to pay down debts.
The property on Queen’s Gate, near Hyde Park, is being sold by receivers for around $34m (£27m) alongside another house worth some $520,000 (£412,000) as part of bankruptcy proceedings, according to Bloomberg News.
Receivers are usually appointed by creditors to recover funds in default and prepare for the liquidation of assets.
The two homes were tied to more than $22m (£17.43m) worth of mortgages, Bloomberg reported, citing court filings.
The properties are reportedly registered to Emirati businessman Khalifa Bin Butti Omeir Al Muhairi, who filed for bankruptcy in Abu Dhabi in 2021.
He was formerly vice-chair of NMC Health, a hospital operator once listed in London which collapsed in 2020. The City watchdog found it had misled markets by understating its debts by as much as £3.2bn.
A 20-bed Mayfair mansion and £250m Regent’s Park property once owned by the Saudi royal family were also reportedly put up for sale by receivers last year.
Some of the capital’s most expensive mansions are struggling to sell as the prime property market struggles with higher interest rates and billionaires increasingly turn to renting.
Expectations of multiple interest rate cuts from the Bank of England this year have provided some relief to the sector.
Receivers are also said to be investigating a home bought by Saeed Mohamed Butti Mohamed Al Qebaisi for £6.5m in 2015, a former NMC shareholder whose bankruptcy is tied to Al Muhairi’s.
Al Muhairi and Al Qebaisi could not be reached for comment.