When a property speculator listed the LA mansion, 'The One', for $295 million, it was the most expensive property in the US. However, the asking price turned out to be magical thinking. With no takers, the builder sued for bankruptcy. And the bankruptcy court put the house up for auction. The winning bidder paid a record auction price of $126 million — $141 million including the auction fee — but they still saved themselves $154 million. The buyer will be revealed on Tuesday, March 8th, although it will likely be an opaque LLC and is unlikely to be a Russian. The sanctions have cooled the ardor of that pool of oligarchs, who are now panic selling. And the ultra-luxury end of the real estate market will face headwinds. (It is always something when you are rich.)
Roman Abramovich’s $190 million house in Kensington Palace Gardens in London
The US will suffer some fallout from the lack of Russians buying expensive things. But the effect will be more pronounced in London (aka Londongrad) - where Russian oligarchs have parked a mound of cash in real estate and other assets. Take Roman Abramovich. Most well-known as the owner of Chelsea FC, he is looking to unload the club and his British real estate holdings. Note: Abramovich said he would put the ‘net proceeds’ of the sale into a charity to aid victims of Russia’s invasion of Ukraine. Of course, ‘net proceeds’ is a slippery concept and can mean pretty much anything when it comes to writing the check.
Hemmed in in Hamburg, Alisher Usmanov’s 511-foot, $800 million boat, the Dilbar.
Other Russian buccaneers are nervously trying to hide their yachts. An onerous endeavor in a world largely united in denying Putin’s monied-mob free access to their assets. In fairness, North Korea, Eritrea, Syria are still available yacht havens, although joie de vivre, and the nightclub scene, may be attenuated. The Italians have seized two ultra-yachts, the French one. Another remains detained in Germany. Others are sailing for the Maldives — which lacks any extradition treaties. The usual European yacht-party spots will be rich Russian-free for the foreseeable future.
I suspect that Putin’s greatest fear is of the wrath of pissed-off billionaires who, while playing lip service to the Russia-First philosophy would like to regain full access to the spoils of their financial adventurism. No doubt Vlad is holed up in a fortified building, surrounded by his Praetorian Guard. I wonder if he is familiar with Caligula’s murder at the hands of Cassius Chaerea, leader of the Emperor’s personal security. As Shakespeare's Henry IV pithily observed, “Uneasy lies the head that wears a crown.”
