Sports Direct tycoon Mike Ashley has backed a deal for a luxury residential development in Chelsea that could be worth up to £900m.
The Newcastle United owner and Sports Direct founder is understood to have financed Citygrove Securities and McLaren Properties’ £200m acquisition of the Clearings development, near the Kings Road, from retailer John Lewis.
The site, on Draycott Avenue, 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 Ashley, who is better known for selling sportswear.
According to The Sunday Times, the money behind the deal is from Ashley’s personal company Mash Holdings. The company made profit before tax of £542.7m last year after Ashley sold £283m-worth of shares.
This morning Citygrove and McLaren confirmed they had formed a joint venture called McGrove Securities to complete the deal.
JLL acted for John Lewis.