London, Oct 29: The Hinduja family expects returns from its 1.3 billion pound investment in the World War II era former Old War Office (OWO), one of London’s historically important and powerful addresses, in a time frame of around 5 to 6 years.
OWO, earlier Winston Churchill’s war office situated at Whitehall, now has 120 rooms and suite hotel – Raffles London, nine restaurants, three bars and 85 private residences branded by Raffles, a Singaporean chain of Luxury Hotels.
This is the first time when the Hinduja group has invested and developed any such heritage property, said Sanjay Hinduja, Chairman of Hinduja Group company Gulf Oil Ltd.
Asked about the rationale of such a large investment, he said: “Initially, we looked at it (we as a family) should create something in London. We should leave behind a legacy in this country.”
The Hindujas has invested around 1.3 billion pounds (nearly Rs 13,151 crore) on this OWO project, which includes an acquisition cost of 374 million pounds along with stamps and the rest on the development of the project.
According to Sanjay Hinduja, a third-generation member of the Indian-origin Hinduja Group and the UK’s richest family, most of the F&B brands, and spa partner, at OWO has come to the UK for the first time and were never in London before, he added.
OWO is a destination that has everything in it – from multiple F&B options to ballrooms, and multiple types of apartments. It offers three unique dining experiences by acclaimed chef Mauro Colagreco alongside the spectacular Guerlain Spa and Pillar Wellbeing.
When asked about payback from the investment, Sanjay Hinduja said this property has 85 apartment residences, spread around 188,000 square feet.
“The apartment has real margins. I think by December this year, we would have approached 50 per cent of this,” he said, adding “We would be successful to sell everything in a maximum period of five to six years.”
Most of the buyers of the residence are from the US, China, Europe, the Middle East and also from Africa. However, he also added that no one from India has approached him so far.
Over the hotel, he said it is a “trophy asset” and will take five to six years “to grow value and blossom”.
“It will take time for the hotel to stabilise,” he added.
However, he also added that from sales of 85 residences “most of it (investment) will come, because our sales prices are on the higher side.”
On being asked whether Hindujas are looking for similar opportunities to develop such iconic heritage property, he said: “We have not looked outside the UK. Our team is based in London… If something comes in Paris, then why not.”
The story for the acquisition of this central London-based marque property, a stone’s throw distance from 10 Downing Street, British Parliament and Big Ben, started with a routine morning walk of the Hinduja brothers at St James’s Park in 2014.
Four Hinduja brothers – Srichand (who died in May 2023), Gopichand, Prakash and Ashok – while returning from their one such regular morning walk saw the former Old War Office and discussed. They decided to bid for this marque property. Though they were the last bidder but got the property.
“In the family, we always keep our eyes and ears open. If any opportunity comes, you will see a surprise that we have bid and we have (acquired),” said Ashok Hinduja – Chairman of Hinduja Group of Companies (India).
This happened “although it was not in our program,” said the Hinduja Group Chairman Gopichand Hinduja.
“But when we target something and decide yes, we now have to pick it up, then irrespective of anything, it comes to us. We have seen this from Ashok Leyland onwards,” said Ashok Hinduja, who is also Chairman of IndusInd International Holdings.
After the acquisition of the said property, Hindujas spent nearly eight years on its redevelopment with Dubai-based Onex Holdings, where it has to go for several clearances at every stage of the process as being it a heritage property.
This was formally inaugurated on September 26 this year,
When asked which one is his favourite suite at the OWO, the Hinduja group Chairman while referring to the Haldane Suite, which was Churchill’s former office, replied: “The one which is 25,000 pounds (around Rs 25.30 lakh) a night.”
He further said: “Many times, we discussed with the Raffles that why would anybody pay 25,000 pounds for a night? but they said, ‘there is a category of people who pay’.”
The six-bedroom Haldane Suite is already booked for December, said Sanjay Hinduja.
Raffles London at The OWO was once inhabited by Britain’s most famous statesmen and spies from Lord Haldane to Winston Churchill. Novelist Ian Fleming, creator of James Bond, took inspiration from the building for his stories, and many of the subsequent Bond movies filmed scenes in the building.
Hindujas were interacting at a media round table here at their Carlton House Terrace – a family residence, in London.
Hindujas are also an investor in Mumbai’s J W Marriott Hotel in Juhu. (PTI)
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