2011 has seen the proliferation of Luxury Property Developments in Prime Central London, with One Hyde Park, Silk House at Cornwall Terrace and The Lancasters. ‘Super-Prime’ developments are on the increase, and developers such as Candy and Candy, Northacre and more recently Earlcrown, Oakmayne and Finchatton, are not only capitalising on the boom in London’s super-prime property market, but are also revolutionising the developers role when it comes to branding and marketing projects.  As Urban Exposure’s Daljit Sandhu explains:

 “By blending the role of designer with developer as well as project manager, the Candy Brothers have extended their role to the position of development manager; applying their expertise to other owner’s projects.  By creating a brand synonymous with design excellence, exclusivity and style, the Candy Brothers can achieve prices often far in excess of market comparables.”

In the past, high-end luxury developers have been largely a ‘cottage industry’, with a number of small players whose names were not necessarily publicised when marketing projects.  Reliance was put on creating an individual brand and name for the project, and using an estate agent who was considered to have the relevant experience or connections required to market luxury developments.  For a high-end project, developers sought a high-end agent, and mostly remained behind the scenes.

But this approach is changing, due to the success of high profile developers such as the Candy’s, who have redefined the role of the luxury developer and created a global brand in the process.  The Candy brothers success is notable from the accolades they have claimed, thanks to their premium development projects, and shrewd marketing, they continue to achieve global notoriety for transforming the luxury property market and the way their developments are marketed.

The Candy’s genius was in spotting an opportunity for providing a turnkey solution for the world’s ultra high net-worth buyers and investors, and catering to their discerning and demanding tastes.  In the early days, the Candy’s built their reputation on providing a very specific aesthetic; dark, slick, minimalist bachelor pads with all manner of technological advancements and gadgetry.  They introduced biometric reading (fingerprint-recognition door locks) in the UK and it is rumoured that their apartments came equipped with a 22 bottle champagne ice-cooler.

In addition, Christian Candy, the duo’s salesman, capitalised on the appeal of the jet-set lifestyle; entertaining clients with tables at London’s best restaurants and private clubs, and inviting them onto the Candy’s yacht.  Christian also sold the notion of London as the World’s financial centre and playground of choice for the rich and famous.  It’s speculated that existing clients will only buy within a Candy development, or commission the refurbishment of multiple international homes with the distinctive Candy style.  As Christian Candy Told Management Today in a interview earlier this year:

“We operate what we call the layering effect.  We take a comparable and justify a valuation that is more than that.  We take the base price and then we add x% for the architect, x% for the location, x% for the design, x% for the components.  It’s like an S-Class Mercedes. You can get one for £70,000 or you can get a Rolls-Royce Phantom for £250,000.  They will both do the same speed but the Rolls-Royce is made from different materials and has a different standard of finishing.”

Just this month it is believed that a buyer paid a record breaking £7,500 p/sqft at their One Hyde Park development, far in excess of the previous £6,500 record.  The project is estimated to have made revenues of £1.4bn from the sale of just 60 of the 80 apartments available.  As Urban Exposure’s Daljit Sandhu comments:

“The Candy’s were clever in spotting and catering to a specific market niche, but they also focused on pushing forward their own profiles; socially and in the media, as well as the company’s branding and marketing.  The formula has proved to be highly lucrative and it remains to be seen if the other Super Prime developers now vying for position in the current market can successfully replicate this strategy.”

Daljit Sandhu is a Director at Urban Exposure, who provide mezzanine funding to high-end residential developers in London and the South East http://www.urbanexposureuk.com/en/finance/mezzanine-finance/