Mike Ashley funds purchase of Chelsea development worth £900m

Joe Hall
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Mike Ashley is said to have financed a £200m for the property in Chelsea. (Source: Getty)

Mike Ashley has financed a deal for a lucrative development in Chelsea that could be worth around £900m according to reports.

The Newcastle United owner and Sports Direct founder is said to have provided the £200m paid by Citygrove and McLaren Properties for a development site from John Lewis.

According to The Sunday Times, the money behind the deal - agreed on Friday night - came from Ashley's personal company Mash Holdings.

The Clearings development, located near the Kings Road, has planning permission for 62 flats, seven townhouses and a new Marlborough Primary School. The deal would mark the first foray into luxury property for the billionaire more commonly known for selling cheap sportswear however, it comes as sales for high-end property in the capital begin to cool off.

Adjustments to stamp duty made in December's Autumn statement hit houses at the very top end of the market with higher taxes - properties worth £2.1m or more saw their tax bill increase by £18,750.

Last month growth in London property prices dropped by 0.9 percentage points according to figures from LSL property services.

Ashley's Mash Holdings made profit before tax of £542.7m last year after Ashley sold £283m-worth of shares.

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