A residential tower at the centre of the Thames City development in Nine Elms has reportedly struggled to find buyers for its luxury apartments.
The skyscraper has sold less than one in 15 homes in its first year of marketing, The Telegraph first reported.
The developers have since pointed out to City A.M. that only a “small proportion” of homes have been put up for sale, and therefore it has in fact sold one in three properties available.
The square, which houses three skyscrapers, includes London’s tallest residential tower that hosts two £10m ‘sky villas’.
The Nine Elms development has reportedly sparked fears that it’s a dead-end investment, with the Telegraph citing one investment adviser who urged clients in September to sell any assets at the site and reinvest elsewhere.
However, the lofty sales tag on the luxury apartments will have reimbursed some of the cash spent, though generous returns are looking lacking.
Chinese developers R&F and CC Land, who spearheaded the project, have already cut the number of planned flats from 1,900.
The entire project is expected to be completed by the end of the decade.
A spokesperson for R&F said: “We have exchanged contracts to sell almost £100m of property in the United Kingdom in 2021, which is a strong performance by anyone’s standards. Sales continue to be strong, with a good pipeline of transactions due to also complete before the end of the year – buoyed by the recent opening of the Northern Line Extension – and we look forward to welcoming our first residents to Thames City next summer.
“As of November 2021, it is categorically untrue to state that more than half of our UK sales are related party transactions.”