Developer, Borzou Shirazi, has bought a block on Kensington High Street for £50 million.
The block at 116-130 currently contains 28 flats, which Mr Birazi hopes to convert to 16 luxury apartments, with the top floor of the building reserved for four penthouse flats.
PropertyWeek has said the purchase is evidence of the strong ‘super-prime’ market, which features units worth more than £5 million.
Commercial property sits below the flats and is currently let to Sony Ericsson, Esprit, Superdrug and WH Smith. Mr Shirazi intends to refurbish the business property and could then sell it on, it was reported.
Should he complete his plans and sell the flats at £3,000/sq ft, he is estimated to make £147 million.
Foreign backed investors are currently eyeing the commercial property market for bargains and building large amounts in investment trusts, ready for when they start buying.