Frasers Centerpoint, a unit of Fraser & Neave, has laid down 10 percent non-refundable deposits for the S$106 million (£47 million) deal to purchase 120 flats at the old stadium site of Arsenal, an English football club. According to reports in February, Frasers is likely to forfeit its deposit.
The owner of Arsenal Football Club, Highbury Holdings, has already sold the flats and 25 other properties to an AIM-listed property group, London & Stamford, for £41.4 million.
Frasers showed unwillingness to pay the remaining amount in full upfront and instead suggested to pay on a deferred schedule, the sum of £15 million. However, one of the club’s banks blocked the offer.
Yesterday, Frasers expressed its delight for the sold units, “The price achieved is a clear indication that the market has turned in London and that there is significant interest from investors in acquiring prime London property,’ a spokesperson told BT. “Our decision not to complete enables us to focus on our existing property portfolio and our direct development projects in London.”
Based on a Telegraph newspaper report, London & Stamford purchased the units at a cheap price discounted by almost 20 percent. Compared to an approximate of £500 per sq ft market rate, analysts claimed that the paid price worked out to around £400 per sq ft.
About 655 flats in the development are built on the site of the 93-year home ground of Arsenal, which retains the historical façade of several marbled entrance halls and spectator stands.
At the peak of the housing boom in London, the club incurred huge debt to finance the development. However, from the start of the weakening economic conditions, the club has already struggled to complete the sales. Last Monday, the club said that there are still about 32 percent available units.