The increasing demand from discerning international buyers is driving the London market to raise its standards for luxury property, from the bespoke materials and finishes, technological enhancements, and resident amenities, London luxury residential is now world leading.  London’s developers are rising to the challenge, and it’s becoming an increasingly competitive sector.  There were a number of casualties following the credit crunch; those who have survived speculated wisely when it came to purchasing, but now need to establish market leading brands, a distinct aesthetic and loyal customer base to build on their success.

As Urban Exposure’s Daljit Sandhu observes, creating luxury residences for the worlds wealthiest buyers and investors, and establishing a high profile recognised brand as a developer, also helps when it comes to securing finance and investment:

“In terms of funding, for senior debt it is now essential for banks to see a development track record, but an established brand is also perceived to reduce sales risk and be viewed favorably. It also encourages greater equity interest which is increasingly financing the sector”.

So which luxury developers have the credentials to capture the market?  Daljit Sandhu from Urban Exposure profiles a few of the key players.

Developer Northacre, founded in 1989 by Klas Nilsson and John Hunter, is just one example, with a stellar track record and blue chip credentials, their website states that: “for over 20 years Northacre has successfully designed, developed and marketed over £1.5bn of prime residential sites in London, a track record unrivalled by any other residential developer”.

Renowned schemes such as The Phillamores in Kensington and The Bromptons in Chelsea achieved record prices in their time, and featured award winning design and resident facilities never before seen in London.  Their current Lancaster Gate project (secured on the precipice of the credit crunch) is reported to have doubled the value of the 58 apartments at the Bayswater site, compared with its acquisition back in 2006, and bailed out development partner Minerva during the crisis.

Despite this, Northacre have largely missed a trick in the brand marketing of their company, which remains faceless outside of industry circles, and projects have tended to be sold on the basis of branding and marketing tailored to the individual site.

At the very top of the market, EarlCrown, winners of the Prime London Residential Developer of the Year award in 2010, is led by founder Vivian Imerman’s daughter, the glamorous 28 year-old Bianca Ladow.  EarlCrown specialises in low volume development and development management, completing single dwellings with some of London’s highest gross development values.  Bianca describes EarlCrown’s approach to high-end property as the ‘yacht concept’.

She told Haute Living in an interview earlier this year: “our philosophy is to create the world’s finest homes that are fully furnished and ready for clients to move into at the drop of a hat.  We don’t just consider ourselves to be property managers, our objective is to create little pieces of history that will last for generations to come”.

Currently EarlCrown has a refurbishment project on Upper Brook Street of a 20,000sqft townhouse, rumoured to be worth between £80-£100m and due to come to market in 2012, as well as a 9000 sqft refurbishment of a townhouse on South Audley Street.  They have previously completed projects on Avenue Road, Upper Grosvenor Street and Eaton Square (with gold mosaic spa, 40ft indoor pool, steam room and Jacuzzi).

Developer Finchatton, formed by Alex Michelin and Andrew Dunn in 2001, was conceived when Alex bought his first flat and had to wait in for the BT man, as Michelin explained to the Evening Standard Magazine: “it all took so long. Then I saw a guy driving a Ferrari, and I thought: ‘why isn’t there a property business that offers the equivalent of a Ferrari to people with money but no time?’”

Finchatton’s signature aesthetic is ‘contemporary classic’, muted Art Deco in a palette of pale grey and chrome with marble bathrooms and concealed technology, plasma screens hidden inside bedframes and moving glass walls, hand built closets with specific sections for the Jimmy Choo and Manolo Blahnik collections to suit the heel height, and designed temperature-controlled wine cellars to store Pétrus separately from Bollinger.

Finchatton claim to have designed managed and financed over 50 projects.  They currently have a project on Basil Street in Knightsbridge of three 2,000sqft apartments with parking, due for completion in Autumn 2012, as well as a 9,000 sqft home on Wilton Mews in Belgravia.  A project at 53-56 Hans Place in Knightsbridge bought with US private equity firm Westbrook Partners in 2010 of some 40,000 sqft has not commenced however, and its future looks uncertain.

In any case the Finchatton’s have been clever in pushing forward both their individual personalities in mainstream and industry media and society circles.  The reputation of the company has been built in a similar vein to the Candy Brothers, though they tend not to like the comparison: “we’re not at all in the same market,” they claim: “our projects are much smaller and more discreet”.

As Urban Exposure’s Daljit Sandhu observes, mixing in the right circles and raising your personal, as well as business profile, goes a long way in the establishment of a recognised brand and company face, producing developments that are coveted by the super rich, and ultimately able to achieve higher prices, and ultimately profits:

“Using a company brand with associated house style, lifestyle aspiration and assurance of quality, is becoming important as a differentiator, and lucrative in achieving greater sales value for the ‘designer label’ home.  It also encourages loyalty – once a developer has a client relationship they will be first port of call when the client wants to trade-up, refurbish multiple homes or even outside of the domestic, yachts and private jets.”

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