Indian Vaccine Heir Said Buying London’s Priciest Home of 2023 in $173M Deal

Indian vaccine tycoon Adar Poonawalla is reportedly spending about £138 million ($173 million) to purchase a mansion in London’s West End in what ranks as the UK capital’s most expensive home purchase this year.

Poonawalla, chief executive of Serum Institute of India (SII) and heir to the fortune behind the world’s largest vaccine producer, has agreed to buy Aberconway House in the affluent Mayfair neighbourhood from Polish billionaire Dominika Kulczyk, according to an account by the Financial Times on Tuesday.

The 25,000 square foot (2,323 square metre) mansion, which Poonawalla is said to be buying through SII’s UK subsidiary, Serum Life Sciences, is poised to become the priciest home to change hands in the city this year and the second-most expensive ever sold in London, behind only a Knightsbridge mansion purchase by mainland property tycoon Xu Jiayin for a record £210 million in January 2020, before his China Evergrande Group fell into distress.

Ultra wealthy individuals from around the globe have been scooping up larger and more luxurious homes in prime Central London, with data from Beauchamp Estates showing the average value of ultra-prime home transaction this year surging 43 percent compared to 2022.

A Pharma Prince in Mayfair

Poonawalla is paying a 148 percent markup for Aberconway House from the £57 million which Kulczyk reportedly paid to acquire the mansion in 2020.

At the reported price tag, the vaccine heir is paying roughly £5,520 per square foot for the home, which he rented from Kulczyk for around £50,000 per week in 2021, based on an account by Bloomberg at that time.

The price per unit is also 36 percent higher than the average £3,520 per square foot price for ultra-prime homes in Mayfair so far this year, Beauchamp data showed.

The 42-year-old billionaire and his family reportedly have no plans of settling in the UK and only want to use the mansion as a base for when they are in town, according to an insider who spoke with FT.

The younger Poonawalla is the son of 82-year-old tycoon Cyrus Poonawalla who amassed a fortune over the past five decades producing affordable vaccines at SII for sale to developing countries. The patriarch is now India’s sixth richest man with a net worth of $21.9 billion, based on Forbes data.

Located along South Street in the City of Westminster, the 1920-vintage home sits a few blocks from Hyde Park and about 1.2 miles (1.9 kilometres) from Xu Jiayin’s 2-8a Rutland Gate in Knightsbridge.

The Evergrande boss is reportedly struggling to sell his 45-room abode amid his scramble for cash, with the property having been on the market for over a year now, according to media reports.

Rich Foreigners Drive UK Luxury Housing

The deal adds fuel to London’s booming ultra-prime housing market which has been attracting high-net-worth buyers from the United States, Europe, India, Malaysia and China, with Mayfair and Hyde Park hailed as the hottest destination this year for sales valued at over £100 million, according to Beauchamp.

Buyers have been snapping up larger properties, the agency noted, with the size of premium homes changing hands in the first five months of the year rising to an average of 11,200 square feet, from just 7,000 square feet in 2022.

“Business interests and education make Great Britain an attractive location for UHNWIs to have a primary or secondary residence,” the firm said in its November Ultra Prime Barometer report. “The global elite’s interest in prestigious UK capital properties remains strong, strengthened by favourable exchange rates and a resilient economy amidst global market volatility and geopolitical instability.”