Hinduja awaits returns on £1.3 billion OWO "Trophy Asset" investment over next 5-6 years

The Hinduja family is anticipating returns on their substantial £1.3 billion investment in the historic Old War Office (OWO) in London over the next 5 to 6 years. The OWO, formerly Winston Churchill's war office on Whitehall, has been transformed into a luxurious establishment, featuring the Raffles London hotel with 120 rooms and suites, nine restaurants, three bars, and 85 private residences under the Raffles brand.

Sanjay Hinduja, Chairman of the Hinduja Group company Gulf Oil Ltd, explained that this marked the family's first investment in a heritage property. He emphasised their desire to establish a legacy in London.

The Hinduja family's investment comprises the acquisition cost of £374 million, along with expenses for development and other associated costs. Notably, many of the food and beverage brands and the spa partner at OWO are new to London, contributing to the project's uniqueness.

The OWO boasts a diverse range of offerings, from dining options to ballrooms and various types of apartments. Sanjay Hinduja mentioned that the 85 apartment residences, covering approximately 188,000 square feet, are expected to yield significant profits, with around 50% expected to be sold by December.

Buyers for these residences primarily come from the US, China, Europe, the Middle East, and Africa, with no Indian buyers thus far. The hotel, described as a "trophy asset," is expected to take five to six years to mature and appreciate in value. Sanjay Hinduja also highlighted that high sales prices for the residences would contribute to the investment's returns.

When asked about future opportunities for developing similar heritage properties, Sanjay Hinduja expressed openness to possibilities outside the UK, particularly in Paris.

The acquisition of the OWO property near 10 Downing Street, the British Parliament, and Big Ben began with a chance discovery during a morning walk by the Hinduja brothers in 2014. 

Despite being the last bidder, they successfully acquired the property.

The Hinduja family is known for seizing opportunities, and the Chairman of the Hinduja Group of Companies, Ashok Hinduja, affirmed their commitment to acting swiftly when a target is identified.

The redevelopment of the OWO took nearly eight years in collaboration with Dubai-based Onex Holdings, involving numerous heritage property clearances. The property was formally inaugurated on September 26.

Regarding their favourite suite at the OWO, the Hinduja family mentioned the Haldane Suite, which was Winston Churchill's former office and is priced at £25,000 per night. They acknowledged the niche clientele willing to pay for such luxury.

Raffles London at The OWO has a rich history, having been inhabited by prominent statesmen and spies, including Winston Churchill and inspiring James Bond author Ian Fleming.

The Hinduja family shared these insights during a media roundtable at their family residence in London, Carlton House Terrace. They are also investors in Mumbai's J W Marriott Hotel in Juhu.

(With PTI Inputs)