(Bloomberg) -- A luxury townhouse in London’s exclusive Kensington district is expected to sell for about $34 million (£27 million) as part of bankruptcy proceedings.
The property, a short walk from Hyde Park, is registered to Khalifa Bin Butti Omeir Al Muhairi — an Emirati former vice-chairman of NMC Health Plc. The once London-listed hospital operator collapsed into administration in 2020 following allegations of fraud, triggering a series of investigations and lawsuits.
Al Muhairi filed for bankruptcy in an Abu Dhabi court a year later. His insolvency filing has prompted the appointment of receivers to sell his townhouse on Queen’s Gate, as well as a second property worth roughly $520,000. More than $22 million worth of mortgages were associated with the two homes, according to court filings seen by Bloomberg.
Emails sent to the KBBO Group, which Al Muhairi founded, did not receive a response. A phone number listed on KBBO’s website did not work.
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The sales are the latest instances of luxury homes in London being sold in insolvency proceedings, following a tightening of debt markets that has left some owners struggling to refinance mortgages after interest rates soared. UK receivers are typically appointed by a creditor with a view to liquidating a company’s assets to pay down debt.
Last year, a roughly 20-bed property in London’s Mayfair neighborhood sold for over £50 million as part of an enforcement action. The Holme, a £250 million mansion in Regent’s Park formerly owned by the Saudi royal family is also in receivership following the lapse of a loan.
Those looking to sell luxury homes in London this year face weaker sentiment among buyers driven by high interest rates and the prospect of a Labour government. In London’s most affluent postcodes, sales fell about a third in November from the same period a year earlier, according to researcher LonRes.
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Still, Al Muhairi’s former townhouse — reported to have a swimming pool and spa — is situated in one of London’s most sought-after districts. Kensington made up 11% of all £5 million-plus deals across the city last year, according to broker Savills Plc.
The receivers appointed to sell Al Muhairi’s houses are also investigating a third home owned by former NMC shareholder Saeed Mohamed Butti Mohamed Al Qebaisi.
The bankruptcies of both Al Qebaisi and Al Muhairi were joined under UAE law as their estates were hard to separate due to their shared business interests, court documents show. Under a restructuring agreement both men were permitted to retain certain assets, provided that they did not exceed 10% in value of their total estates.
Al Qebaisi’s property — a short walk from Buckingham Palace in London — was purchased for £6.5 million in 2015, and is still registered in the Emirati businessman’s name on official documents. A court ordered the restructuring of Al Qebaisi’s assets in 2021.
Attempts to reach Al Qebaisi were also unsuccessful.
--With assistance from Nicolas Parasie.
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