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Residential Real Estate News
Russian Oligarch Loses Record $53 Million Deposit on French Riviera Estate
(VILLEFRANCHE-SUR-MER, FRANCE) -- A French court this week refused to return a Russian oligarch's $53 million deposit on a French Riviera estate, which is believed to be the world's most expensive property.
In 2008, mining billionaire Mikhail Prokhorov reportedly offered â¬390 million ($531 million) for Villa Leopolda, the cliff-top mansion outside Villefranche-sur-Mer built in 1902 for King Leopold II of Belgium. If the sale had completed, there is little doubt Prokhorov would have earned bragging rights for paying the highest amount in history for a single residential property.
See related REAL ESTATE CHANNEL posting: (March 1, 2010) : French Riviera Luxury Properties Face Drop in Demand, Latest Victim of Global Recession
"The sale marked the zenith of the real-estate follies among competing oligarchs," The Times notes.
When the economy collapsed, Prokhorov backed out of the deal and wanted his 10 percent deposit returned. But French law only allows a buyer to reject a deal during a seven day "cooling" period (a lesson for all French second home buyers).
In turning down Prokhorov's appeal, the French court also awarded owner Lily Safra, widow of financier Edmund Safra, â¬1.5 million in damages. She reportedly was "forced" to lay off 27 guards, gardeners, servants and cooks for the property. (Safra says she will give the money to charities.)
Meanwhile, Prokhorov is still considered one of the world's richest men and he's trying to buy the New Jersey Nets of the National Basketball Association.
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