Buy A Place In History: Residences At London’s Old War Office

Property in London's Belgravia, Westminster, Knightsbridge, Kensington, Chelsea, Mayfair and Marylebone remains some of the world's most sought-after and expensive residential real estate. While there were concerns that 2023 could see a property price crash, the UK market has fared better than expected, even in light of increased interest rates.

At Enness, we see the reality as being that prime London will never really go out of fashion. The world's ultra-wealthy continue to be drawn to the city, the luxury property market has historically demonstrated resilience, and high-value London real estate remains highly desirable despite headwinds caused by Brexit, geopolitical unrest and wider economic uncertainty.

The variety of high-end real estate on offer, the city's historic riverside setting, world-leading cultural, retail and social scene, and status as a major global financial centre all contribute to its appeal. Many high-net-worth individuals hold assets, own businesses, invest and direct capital flows through London, making property ownership in the capital an obvious choice for many wealthy families.

The Old War Office

In a city full of prime property, a home with a story, history and perhaps a pinch of je ne sais quoi can offer additional appeal. The Old War Office, or OWO for short, delivers on all fronts.

The iconic building is today once again one of London's most famous addresses. It has provided the backdrop for several films, including James Bond titles such as Octopussy, A View to a Kill, Licence to Kill, Skyfall and Spectre. It has now opened as Raffles' first London hotel, alongside 85 branded Raffles residences.

Ian Fleming, who created the iconic British spy James Bond, was a regular visitor to the OWO during his tenure with the Royal Navy Intelligence Division, and his work there is thought to have inspired some of 007's escapades. Other notable individuals to work at the War Office included Winston Churchill, David Lloyd George, Lord Kitchener, Lord Haldane and T. E. Lawrence, better known as Lawrence of Arabia.

The military divisions that would ultimately become MI5 and MI6 did not have their headquarters in the building during either the First or Second World Wars, but agents would reportedly visit to receive orders and provide debriefs. As a result, the OWO still retains a 'spies' entrance'.

Today, this entrance provides a more discreet entry point to the residences, which occupy a separate wing of the building away from the main thoroughfare of Whitehall. The iconic building was also completed with sculpted figures representing Peace and War, Truth and Justice, and Fame and Victory.

Raffles and Residences at the OWO

The OWO is now owned by the Hinduja Group, which purchased the building from the Ministry of Defence in 2016 for £350 million. However, the acquisition cost was only part of the overall investment, with a further investment of well over £1 billion required to deliver the 120-room hotel and 85 residences.

The hotel and residences are serviced by Raffles through a partnership between the Hinduja Group and Accor, which controls the Raffles brand.

A total of 85 homes make up the OWO's residential offering, and they are among the most distinctive properties currently available in London. Homeowners have access to Raffles services, including the hotel's 20-metre subterranean pool, alongside an owners' dining room, gym, cinema and games room within their designated wing of the building.

Every Raffles-branded residence within the OWO is unique, with the existing features of the historic building influencing the floor plan and design of each home. As a result, every property has its own character. Ceiling heights, window layouts and room proportions may differ from one residence to another depending on where it is located and how the original spaces were used.

The OWO's pièce de résistance is its penthouse. The price is available on application, although reports have suggested a price tag of around £100 million. Wealth alone may also not be enough to secure the property, with reports suggesting that buyers will need to be the right 'fit'.

One of the most distinctive properties in London, the five-bedroom penthouse extends across 7,700 sq ft and includes a private gym, sauna, cinema and games room. It also offers views of some of London's most recognisable landmarks, including parts of Downing Street, the London Eye and Nelson's Column.

The property also includes staff quarters and expansive terraces integrated into the building's flat roof.

Financing an OWO Residence

Several OWO properties have already been sold, with reports suggesting that initial interest predominantly came from British and American buyers, although the development has undoubtedly attracted international attention.

The properties available are all high-value assets. At the lower end of the price range, residences have reportedly started at around £2 million for a studio, with prices increasing depending on size, floor plan and features. Residences with terraces, for example, will typically command a premium.

Lenders can be willing to finance OWO properties for suitable buyers, given the quality of the underlying assets, exceptional craftsmanship and the building's status as one of London's enduring landmarks. However, residences of this nature are highly individual, and the mortgage finance used to acquire them may need to be equally bespoke.

Given the nature and scale of these purchases, seeking specialist guidance can be valuable. Toby Johncox, Group MD, explains: 'Private banks are likely to offer mortgages, as will boutique and niche lenders that cater to high-net-worth individuals. In deals such as these, the lender can customise the mortgage around the buyer with individual rates and terms.'

'The lender may also be able to cater for international buyers, those with unusual revenue streams, such as multi-currency income, and borrowers looking for facilities that may not be widely available through the mass market, including interest-only mortgages and higher loan-to-value structures. However, navigating these options independently can be overwhelming and time-consuming and may result in the most suitable route being overlooked.'

London Keeps Leading the Way

London continues to attract domestic and international buyers looking to acquire top-end luxury real estate. Anyone considering an ultra-prime purchase in the capital is likely to be aware of the OWO, particularly following the fanfare and positive reviews surrounding the hotel's opening.

The launch may also have given prospective buyers greater confidence that the OWO is firmly established as one of London's leading residential addresses.

The OWO residences offer many of the qualities sought by prime property buyers: a one-of-a-kind home with a unique history, exceptional design and finishes, an exclusive address, high levels of security and access to premium amenities, including the underground pool and Guerlain spa.

In short, anyone looking for the very best in prime London living may find that the Raffles residences are just the ticket.