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| Selling a ‘Hot Spot’ to the Beau Monde | Selling a ‘Hot Spot’ to the Beau Monde |
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| TUCKED away in central Switzerland, Andermatt was for decades a low-key Alpine town popular with skiers searching for an off-piste experience. Its brief claim to movie fame was as the setting for a car chase in the James Bond film “Goldfinger.” | TUCKED away in central Switzerland, Andermatt was for decades a low-key Alpine town popular with skiers searching for an off-piste experience. Its brief claim to movie fame was as the setting for a car chase in the James Bond film “Goldfinger.” |
| Any aspirations the town may have had were dampened for decades by the fact that Andermatt was home to a Swiss army base, and because of rules limiting foreign ownership of Swiss property, which kept tourism to a three-star experience. | Any aspirations the town may have had were dampened for decades by the fact that Andermatt was home to a Swiss army base, and because of rules limiting foreign ownership of Swiss property, which kept tourism to a three-star experience. |
| But now a billionaire Egyptian developer, Samih Sawiris, is building a luxury resort town-within-a-town at Andermatt, with 800 residences spread across five-star hotels, apartments and custom villas that could sell for up to 60 million Swiss francs (about $64 million) apiece. | But now a billionaire Egyptian developer, Samih Sawiris, is building a luxury resort town-within-a-town at Andermatt, with 800 residences spread across five-star hotels, apartments and custom villas that could sell for up to 60 million Swiss francs (about $64 million) apiece. |
| The ambitious project is the first in Switzerland where foreigners can buy property without restrictions, after the government granted an unusual exemption to promote economic development. And Andermatt, which is two hours by car from Milan and 90 minutes from Zurich, has the potential to be one of the next “it” destinations for the world’s wealthiest. | The ambitious project is the first in Switzerland where foreigners can buy property without restrictions, after the government granted an unusual exemption to promote economic development. And Andermatt, which is two hours by car from Milan and 90 minutes from Zurich, has the potential to be one of the next “it” destinations for the world’s wealthiest. |
| Mr. Sawiris, the chief executive of Orascom Development, envisions a sort of highbrow global village. “His desire is that when an owner goes into the village they are surrounded by and engaging with well-traveled, well-educated, like-minded individuals from around the world,” said Tony Young, head of sales with Henley Estates International, which is selling Andermatt in North America, “so they have a true cultural experience in the middle of the Swiss Alps. | Mr. Sawiris, the chief executive of Orascom Development, envisions a sort of highbrow global village. “His desire is that when an owner goes into the village they are surrounded by and engaging with well-traveled, well-educated, like-minded individuals from around the world,” said Tony Young, head of sales with Henley Estates International, which is selling Andermatt in North America, “so they have a true cultural experience in the middle of the Swiss Alps. |
| “He would prefer it not to be a European resort, an American resort, or a Russian experience,” Mr. Young added. “He wants it to be a true international experience.” | “He would prefer it not to be a European resort, an American resort, or a Russian experience,” Mr. Young added. “He wants it to be a true international experience.” |
| But who exactly will end up buying in Andermatt is on the minds of the marketers, as well as a few prospective buyers. | But who exactly will end up buying in Andermatt is on the minds of the marketers, as well as a few prospective buyers. |
| The developers might prefer a global mix of people to help feed Mr. Sawiris’s utopian dream of a sophisticated Alpine enclave, and to protect the project from the uncertainties of the international financial markets or the whims of the ultrawealthy. | The developers might prefer a global mix of people to help feed Mr. Sawiris’s utopian dream of a sophisticated Alpine enclave, and to protect the project from the uncertainties of the international financial markets or the whims of the ultrawealthy. |
| Yet it could become the next Courchevel, the French Alpine village that has become the top luxury ski resort catering to wealthy Russians in recent years. | Yet it could become the next Courchevel, the French Alpine village that has become the top luxury ski resort catering to wealthy Russians in recent years. |
| From a strictly financial perspective, the developers should only be so lucky. Courchevel is one of the most expensive places in the world. Property prices in one village, Courchevel 1850, have averaged about $3,216 per square foot. | From a strictly financial perspective, the developers should only be so lucky. Courchevel is one of the most expensive places in the world. Property prices in one village, Courchevel 1850, have averaged about $3,216 per square foot. |
| Russians descend on Courchevel during the first two weeks of January for the Russian Orthodox Christmas and New Year. The flight from Moscow takes less than two and a half hours. Courchevel is also part of the travel circuit for Russian billionaires after they fly to St. Bart’s in the Caribbean to attend a New Year’s party hosted by Roman Abramovich, the billionaire owner of the Chelsea soccer club. At least three of Russia’s richest men — including Mr. Abramovich, Vladimir Potanin and Mikhail Prokhorov — have reportedly vacationed in Courchevel. | Russians descend on Courchevel during the first two weeks of January for the Russian Orthodox Christmas and New Year. The flight from Moscow takes less than two and a half hours. Courchevel is also part of the travel circuit for Russian billionaires after they fly to St. Bart’s in the Caribbean to attend a New Year’s party hosted by Roman Abramovich, the billionaire owner of the Chelsea soccer club. At least three of Russia’s richest men — including Mr. Abramovich, Vladimir Potanin and Mikhail Prokhorov — have reportedly vacationed in Courchevel. |
| That’s not to say that it doesn’t attract other V.I.P.’s. Prince William and the Duchess of Cambridge, the Saudi royal family, George Clooney and David and Victoria Beckham have also reportedly visited. | That’s not to say that it doesn’t attract other V.I.P.’s. Prince William and the Duchess of Cambridge, the Saudi royal family, George Clooney and David and Victoria Beckham have also reportedly visited. |
| The Russians’ free-spending ways have created competition to provide the best of everything — including fine dining, nightclubs offering Beluga caviar, diamond-and-gold encrusted skis selling for more than $45,000 a pair — transforming Courchevel into perhaps the world’s most opulent place to ski. Many club owners from St. Tropez and Cannes move there in the winter to run restaurants and clubs, said Edward Mermelstein, a real estate lawyer in New York who caters to wealthy Russians. | The Russians’ free-spending ways have created competition to provide the best of everything — including fine dining, nightclubs offering Beluga caviar, diamond-and-gold encrusted skis selling for more than $45,000 a pair — transforming Courchevel into perhaps the world’s most opulent place to ski. Many club owners from St. Tropez and Cannes move there in the winter to run restaurants and clubs, said Edward Mermelstein, a real estate lawyer in New York who caters to wealthy Russians. |
| Their lavish spending has at times drawn the attention of authorities. In 2007 the French police arrested Mr. Prokhorov, the owner of the New Jersey Nets and an eligible bachelor, on suspicion of hiring prostitutes for his guests. He was released three days later. He denied the women were prostitutes; the case was dropped and he said in a blog post in 2009 that he had received an apology. | |
| Orascom would rather that Andermatt not become the next Alpine village to generate such headlines. | Orascom would rather that Andermatt not become the next Alpine village to generate such headlines. |
| “We are not looking for a competition,” said Christof Birkhofer, Orascom’s head of real estate for the Andermatt project. “We want to be different, and not just a place for rich people.” | “We are not looking for a competition,” said Christof Birkhofer, Orascom’s head of real estate for the Andermatt project. “We want to be different, and not just a place for rich people.” |
| Mr. Birkhofer scoffed at what he considers the ostentatious sensibility of Courchevel. “They try to sell standard skis branded by Prada for $10,000,” he said. In Switzerland, “we would sell skis based on the quality, not the brand, skis that would be handmade, tailored to your body shape. That’s why you would pay $10,000.” | Mr. Birkhofer scoffed at what he considers the ostentatious sensibility of Courchevel. “They try to sell standard skis branded by Prada for $10,000,” he said. In Switzerland, “we would sell skis based on the quality, not the brand, skis that would be handmade, tailored to your body shape. That’s why you would pay $10,000.” |
| Andermatt’s developers are betting that people from all over the world will jump at a rare chance to own a piece of a Swiss resort area. | Andermatt’s developers are betting that people from all over the world will jump at a rare chance to own a piece of a Swiss resort area. |
| Swiss rules have long put foreigners through a lengthy application process to buy property, and restricted them to one piece of property per application. But in the 1990s the government decided to make defense cuts and pulled the army out of Andermatt. With the region concerned about economic development, the government approved a one-time exemption for Orascom’s project. | Swiss rules have long put foreigners through a lengthy application process to buy property, and restricted them to one piece of property per application. But in the 1990s the government decided to make defense cuts and pulled the army out of Andermatt. With the region concerned about economic development, the government approved a one-time exemption for Orascom’s project. |
| The developer plans to spend about $1.92 billion at Andermatt. The project includes five hotels, all of which will be five-star quality and offer residences for sale. The developer also plans to build 42 apartment buildings with a total of 490 residences. And as many as 28 residential villas will be offered along the river and golf course, on plots ranging from under a quarter acre to just over an acre. | The developer plans to spend about $1.92 billion at Andermatt. The project includes five hotels, all of which will be five-star quality and offer residences for sale. The developer also plans to build 42 apartment buildings with a total of 490 residences. And as many as 28 residential villas will be offered along the river and golf course, on plots ranging from under a quarter acre to just over an acre. |
| Buyers will be able to work with 18 approved architects to customize villas and penthouses. | Buyers will be able to work with 18 approved architects to customize villas and penthouses. |
| The first of five hotels, the Chedi, is to open late next year. It will have a 4,500-square-foot penthouse that will rent for $43,000 a night. The overall project will not be completed for another six to eight years. | The first of five hotels, the Chedi, is to open late next year. It will have a 4,500-square-foot penthouse that will rent for $43,000 a night. The overall project will not be completed for another six to eight years. |
| Prices start at $1 million, for a studio or one-bedroom of about 732 square feet. A private villa built on the largest piece of land will cost about $64 million, Mr. Young said. | Prices start at $1 million, for a studio or one-bedroom of about 732 square feet. A private villa built on the largest piece of land will cost about $64 million, Mr. Young said. |
| And despite all the development, the aura of the tiny mountain town will be protected for future residents. Cars and trucks will be confined to an underground parking structure for 1,900 vehicles, with deliveries to hotels all being made underground. | And despite all the development, the aura of the tiny mountain town will be protected for future residents. Cars and trucks will be confined to an underground parking structure for 1,900 vehicles, with deliveries to hotels all being made underground. |
| Orascom also plans to spend $138 million to upgrade the ski runs to world-class standards. | Orascom also plans to spend $138 million to upgrade the ski runs to world-class standards. |
| Sales have been steady. In September a German hedge fund bought 73 apartments in the Chedi for about $130 million. So far Andermatt has sold properties totaling more than $500 million, Mr. Young said. Some 60 percent of the buyers have been Swiss, the rest foreigners, Mr. Birkhofer said. | Sales have been steady. In September a German hedge fund bought 73 apartments in the Chedi for about $130 million. So far Andermatt has sold properties totaling more than $500 million, Mr. Young said. Some 60 percent of the buyers have been Swiss, the rest foreigners, Mr. Birkhofer said. |
| Among the early foreign buyers are a few Russians. Limiting their purchases “gets tricky,” Mr. Young said. “Legally you can’t say there is a limit, and we aren’t going to do that.” But the developer probably has the ability to control the number of properties available at any one time. | Among the early foreign buyers are a few Russians. Limiting their purchases “gets tricky,” Mr. Young said. “Legally you can’t say there is a limit, and we aren’t going to do that.” But the developer probably has the ability to control the number of properties available at any one time. |
| Beyond curbing the predomination of residents from any one country, Mr. Sawaris also wants to find a celebrity endorser for Andermatt. Mr. Young and his wife, Barbara, the president of Henley Estates International, are working contacts in Hollywood to find the equivalent of George Clooney, who helped raise Lake Como’s international profile when he bought a villa there. | Beyond curbing the predomination of residents from any one country, Mr. Sawaris also wants to find a celebrity endorser for Andermatt. Mr. Young and his wife, Barbara, the president of Henley Estates International, are working contacts in Hollywood to find the equivalent of George Clooney, who helped raise Lake Como’s international profile when he bought a villa there. |
| “For the right A-list celebrity, they might even give them an apartment,” or a week’s stay a year in the Chedi penthouse, Mr. Young said. “The developer wants a really strong American presence in this resort.” | “For the right A-list celebrity, they might even give them an apartment,” or a week’s stay a year in the Chedi penthouse, Mr. Young said. “The developer wants a really strong American presence in this resort.” |
Follow Alexei Barrionuevo on Twitter: @alexeinyt. | Follow Alexei Barrionuevo on Twitter: @alexeinyt. |
| This article has been revised to reflect the following correction: | |
| Correction: December 6, 2012 | |
An earlier version of this article described incorrectly a 2009 blog post written by Mikhail Prokhorov, a Russian billionaire arrested in Courchevel, France, in 2007 on suspicion of hiring prostitutes, and released three days later. Mr. Prokhorov said he had received an apology after his release, not that he had apologized. |