Richest Russian Hit By Recession

Insync

oi-Staff

By Staff

Tuesday, February 24, 2009, 11:15

Recession has not spared the rich and famous also. Reportedly, Russia's richest man Mikhail Prokhotov is pulling away from his deal to buy the most expensive property located in French Reveria.

The 43-year old has pulled off the 500 million dollar contract to buy the Villa Leoplda a Belle Epoque mansion on the heights of Villefrance, near Nice. The deal landed in headlines as it was the most expensive one ever.

Since the recession the prices over the luxurious mansion has collapsed. It was built in 1902 for Belgian King Leopold II on the exclusive Cap Ferrat between Monaco and Nice. Due to the banking crisis Prokhotov's 10 billion pound fortune is said to have suffered badly and now he wishes the return of his 39 million pound deposit.

However, the mansion's heiress Lily Safra is not so happy about Prokhotov's wishes and is not ready to return the deposit amount as under the French property law any deposit paid up to a maximum of 10 per cent of the sale price does not have to be returned. Safra is reported to have told Prokhorov's estate agents: "The deal was agreed in principle so his deposit is mine."

Now Prokhotov is ready to buy the property for 200 million pounds to be able to claw back his deposit. According to the estate-agents who help the mega-rich Russians to acquire property at Cap Ferrat, Cap d'Antibes and Saint-Tropez state that he will have to make a better deal.

"Six months ago, (Mr Prokhorov] was ready to blow half a billion euros on the house. Now he's quibbling about a measly 40 million pounds," the Scotsman quoted one estate agent, as saying. "The Villa Leopolda is the most stunning house in France and the most expensive private residence in the world. Property prices on the riviera may have fallen, but not by that much. If he wants it, he'll need to pay a decent price," the agent added. AGENCIES