Millionaire flats selling well, says Regalian

TIME is running out for anyone looking to spend between pounds 1m and pounds 5.5m on a luxury apartment in Regalian's Kensington Palace Gardens development, writes Tom Stevenson.

David Goldstone, chief executive of the upmarket residential property developer, said yesterday that only six of the building's 20 flats remained, all of which he expected to sell during the current financial year.

The flats are being bought by Hong Kong and Middle Eastern clients, attracted by the devaluation of sterling last year. The disposal of four units since April had provided 'the greater part' of a pounds 23.5m reduction in borrowings from the year-end level of pounds 62m. Group debt had been as high as pounds 130m before a disposal programme, including the sale of Red Lion Court in the City for pounds 38m.

Mr Goldstone said that the residential market was now reasonably buoyant, especially in central London. Regalian is planning joint ventures to acquire more sites and expects to begin developing two of them this year.

A month ago Regalian announced an pounds 83.5m pre-tax loss and passed its final dividend. Although its borrowings matched shareholders' funds at the year-end, the recent sales, which also included 22 units at Free Trade Wharf in Wapping, should wipe out most of the company's debt.

Regalian's shares added 2p to close at 19.5p.