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A mysterious Russian billionaire has trumped his big-spending rivals and broken a world record by splashing out €500 million (£392 million) on one of the most sumptuous villas on the French Riviera.
The price of the Villa Leopolda, a Belle Époque mansion on the heights of Villefrance, has amazed estate agents but fuelled local worries that the invasion of Russian money on the Côte d'Azur is getting out of hand.
Since the early 1990s, Russian oligarchs, drawn by memories of the Riviera-mad old Russian aristocracy, have been piling into seaside properties at Cap Ferrat, Cap d'Antibes, Saint-Tropez and the other great playgrounds.
None, however, has come near the price with which the unnamed Russian clinched the Leopolda deal with Lily Safra, the widow of Edmond Safra, a Lebanese banker who was killed by an arsonist's fire in Switzerland in 2003.
Mrs Safra was said to have held out for months as the buyer raised his bid for the villa, between Nice and Monaco, which King Leopold II of Belgium acquired in 1902.
The previous record for a house was said to be the £57 million that Lakshmi Mittal, the steel tycoon, paid for a property in Kensington Palace Gardens in 2004. The macho spending contest by Russian oligarchs is making property agents giddy.
Jean Pierre, a high-end agent, said: “It's completely surreal and we are really uneasy. We don't dare any more to propose any price below €100 million for these clients. Anything below and they throw you out...and you should see how they do it,” he told Le Parisien. The Nice Matin newspaper said: “At this price tag, we are beyond luxury and even reality.”
Russian excess is feeding discontent among poorer people. Pierrette, a housekeeper for one Russian, said: “I attended a party where the guests had fun throwing burning €500 notes into the air while everyone split their sides laughing. The domestic staff were later told to collect the ashes. It was sickening.”
Jean-Marie Tarragoni, a Nice property manager, said that the Riviera market had gone mad. “Two hundred people are completely destabilising it. These Russian oligarchs have thrown themselves into a bidding war like Onassis and Niarchos.” Rivalry between Aristotle Onassis and Stavros Niarchos sent local prices rocketing in the 1950s.
The price for the Leopolda, which once belonged to the late Gianni Agnelli, the Fiat tycoon, has dwarfed the €20 million paid six years ago by Roman Abramovich, the Chelsea Football Club owner, for the semi-derelict Château de la Croë. Mr Abramovich is lavishly restoring the château, home to the Duke and Duchess of Windsor after the Second World War.
His staff have denied local rumours that he is the buyer of the Leopolda, which has a commanding view of Cap Ferrat and the Mediterranean and is often listed as one of the world's most desirable residences.
Regulars at parties in the Agnelli years there included Frank Sinatra and Ronald Reagan. Its turreted mansion and two guest houses sit in 20 acres of grounds with hundreds of olive, cypress and lemon trees tended by 50 gardeners. Former members of the Israeli special forces are said to ensure Mrs Safra's tranquillity there. She moves out in September.
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he earned his money - let him spend it on whatever he wants to. to be honest, if you have a networth of $20 billion, like this oligarch does (the purchaser was Mikhail Prokhorov), then a house which cost around $700 million dollars is not even that far fetched
Bobby, London, UK
It's very simple, allow me to explain the meaning of
" Capitalism " or for that matter the whole foundation of economics... Things are worth as much as someone is willing to pay for them; no more, no less....
There You have it, the reality that business schools will never teach You.
john, new york, USA
Let them burn their money; the more millions they waste the less they have to spend on war. Why is France mad, its a huge influx of cash into their economy. In theory it can cause inflation but in a luxury market it shouldn't affect the average person. PS Russia nor China are not really communist.
Jabari, the Bronx, United States
I think some people need a reality check. The world is a filthy, corrupt landscape and any notion of 'goodies' is reserved for the have-nots and distributed in popular media to give hope for a fairer future which will never come. Give up on notions of justice for the elite. They make their own.
James Cullup, Oxford,
Sorry guys, but we are really rich. Not only Oligarchs, the ordinary russian people also. We are paying the double american price for cars and it is not expensive, five time for new iPhone and it is not much. We have better salary and less taxes. $100000 per year is for loosers in Moscow now.
Dmitry, Moscow, Russia
Nicolas SARKOZY should not allow French Territory being sold to Russian Mafia. There are already to much bears on our Riviera. One day we will have Russian Fleet come here to take care them : "where are Russians, there is Russia", said the new tzar and mafioso boss. Don't wait until too late.
Michel, Aix en Provence, France
There is no free market... if it was truly free, we would have had many more banks going out of business. The US is effectively socialist right now along with the rest of Europe. These oligarchs were in the right place, at the right time, with the right information and foresight.
David, London, UK
I wouldn't complain too much. These Russians are like the Arabs were in the seventies. They have become fabulously wealthy almost overnight and haven't a clue how to handle it. Hence paying about ten times over the odds for everything. Lily Safra must be laughing her socks off.
Tony, Bristol, England
Any one notice the fact ,that the widow, now has, £392 M, and she did nothing to earn it, either, and her husband did not really "earn" it , what about them ? it seems that there are too many willing to exploit the country situations they are in, Lebanese banker ?, (cockney rhyming slang, I think)
A.Thomson, Smethwick, England
It is not 'their money', the earth is the Lords and its fulness thereof. We will all be asked for an account of what we did with our God-given resources.
Threasher.
Threasher, Dublin, Ireland
Oh please, and are the agencies crying about their commissions too? Or the state about their taxes?
Eugene, heidelberg, germany
Tim Daniels, Russian Oligarchs are not a product of the free market. As a staunch free market supporter, i can say categorically that these men gained their fortunes at the expense of the Russian people with the support of state. This is true "exploitation".
sean, phoenix, usa
After the fall of Communism, the former party leaders in all the Eastern Bloc countries simply stole companies from their own governments . There were no established rules during this chaotic time. They are simply robbers of their own country. These thieves are no Bill Gates.
Sandy, Temple, USA
What no pictures?
Todd, Iowa, USA
James Thompson, I couldn't agree with you more. Any rational free-thinking person with no hidden agendas, would do likewise. Thank you.
Oksard StDouglas, Sydney, Australia
It's nice to see that James and Tim finally agree on something.
Sean, New York, USA
well said Tim, i couldn't agree more.
Sam, London,
Its Tit for Tat; US invaded Iraq for No Rational Reason; David Rockefeller had Serbs Bombed for No Rational Reason, but to win Muslim's Favor. What Serbs or Saddam, were accused of, the US did in the Philippines. What Saddam's sons were accused of, Britain's Charles II did.
James Thompson, Saint Petersburg, Florida USA
Economics, you whiners, is not a zero-sum process. As this guy makes and spends more money, more jobs are created (not just at the mansion) and wages increase due to an increase in labor demand vs. labor supply. That's what happens in a capitalist, free-market economy.
Don't live based on envy.
Tim Daniels, Washington, USA
MY ONE QUESTION: Living under Communism, how did this unknown guy amass such a fortune?
Baxter, Raymondville, Missouri, USA
well if they burn their money they won't be able to spend it buying expensive weaponry for invading Western Georgia! Serves a useful purpse I suppose
bill, tonbridge,
No wonder the Russian masses are chronically depressed. How else are they to feel watching a few robber-barons hoarding the country's wealth and knowing there isn't a thing they can do about it.
Stu, Moscow,
If you make a law so the Russians can't buy property there, then the whole place will be invaded and become part of the Russian Federation in order to "protect Russian citizens".
George, Bristol, UK
Don't knock burning 500 euro notes. It should be encouraged.
These people are actually increasing the value of all remaining euros - including the euros in our pockets!
CB may recall Serge Gainsbourg's original stunt with a FF500 note on late night TV a few years ago (1982?).
Albert, Paris,
I am an average American, and I think that this Russian deserves every right to spend HIS money how he wants.
If you understand the free market, and capitalism this is a very good thing. Go ahead and keep voting for socialism. It doesn't work. Russia should try it! Freedom is a great thing!
Jeff, st louis, usa
It's not their money anyway so it's good that it's coming back our way. What's more they can use their roubles to buy castles in the west but they can't buy class.
Rob, London, UK
it's actually interesting that the Americans are who are quite concerned and disapproving of Russians buying property and a while ago you were the same people who disapproved on them just because they were communist. If they have the money let them buy the properties, if not someone will!!!
Paul Karingithi, Nairobi, Kenya
Gilded Age, part deux.
Geoff, USA,
It just goes to show: whether under the iron fist of Communism or the open hand of capitalism, the average Russian citizen has never had a chance to make his or her life appreciably better. Those with power and money will gain more of both, while the deprived working class will continue to struggle.
Tom Hunter, Newport Beach, USA
I was wondering how a Bush bashing would fit into this story about Russian oligarchs burning money-amazing - you liberals NEVER stop. The commies are out trying to redistribute the wealth of others. Somehow, you made this Bush's fault. When did he have the time to invent capitalism?
William Bedloe, Washington DC, USA
Don't be jealous. The earned the money and if they can afford it then so be it. Think of an idea or work harder yourself and maybe one day you can be in their position. Class envy. Evil Rich.
SAM, jax, fl, usa
Let the Russians buy all the real estate they want. Non-Russians keep the money and, when the balloon goes up, they can't take the real estate with them back to Russia!
Dave, Springfield VA, USA
is there really a 500eur note? that's the real question.
jim, chicago, usa
Everyone knows that the same thugs who ran the old USSR merely changed their designation from Communist to Capitalist. This was predicted to me back in the 1970s by an intellectual Soviet Jew who had managed to emigrate to the West: "The same criminals will always run the Soviet Union."
CarolineC, Pasadena, CA, US
yeah, like americans all got their money fair and square. give me a break
patrick, amsterdam, netherlands
This is what was going on behind the 'curtain'. Money which should have gone to the people went to a few who became richer and richer. There are many people in Russia still in poverty.
Jon, Bognor Regis, England
Well, we here in the USA didn't want the Russians, or Soviet Union to be a Communist country...so how do we like their freewheeling Capitalistic system (oil money?) now. It is a different world, let us wake up to it asap.
paula, boynton beach, florida
jim, although the Russian economy hasn't done well overall, the wealth in Russia is concentrated amongst an elite few (usually people with ties to the government). they have a good number of billionaires, but there is basically no upper-middle class there like you would find in the UK or the US.
Brian, New York,
In the future these billionaires/oligarchs will call themselves The Czars/Kings of Russia and they will put ridiculous crowns and roubles on their heads. Fortunately some of these present day oligarchs are causing so much discontent we can assume history will repeat itself, soon.
Charles, Leeds, W. Yorks, England
A lack of regulation and enforcement have given way to a new age of robber barons in Russia. That's how they get it Jim in Edinburgh. They don't have to fret about things like workers compensation insurance, income tax, or environmental impact assessments.
bigjim-ky, Cincinnati, USA
can someone explain how thesew guys managed to get so much out of russia i always thought it was difficult to acquire it in the first place
jim, edinburgh,
Russians are just like all people. Americans, Europeans, Asians, and all others. They want luxury and respect. It wasn't too long ago we were called "ugly Americans" and by some of the examples I have seen some years ago, we were. They earned it fast and so did we. It's their money so quit barking
robert miers, dallas tx, usa
easy to grouse when you have no money too! at least the place is employing a few dozen folks. Beats the dole now doesn't it?
Larry, Rochester , USA
What kind of man has so much when so many have nothing ? Would you die for these people ? Are these the values we want our loved ones to have ? etcetera....
erich kronberger, South Bend, USA
Russians treat money like they treat life....cheaply. They only respect power...given by money or given by position. When dealing with them is like dealing with a potential Stalin... he was georgian but the russians loved him and many still love him.
Al, Chelmsford, Uk
When I was a kid the world comprised "goodies" and "baddies". The baddies pulled dirty tricks but the goodies always won in the end.
Today, baddies always win. Bush, Blair, bin Laden.
The few remaining goodies are people like McMillan nurses - paid peanuts as they care for the terminal ill.
Leigh Vernier, Riyadh, Saudi Arabia
Does anyone in the West still question the need for us to end our dependence on energy imports from gangster regimes like PutinMobutu and his fellow thieves' Nigeria North? Stop funding these bandits. Conservation, alternative energy, nukes more oil exploration off the US coasts: all of the above.
thibaud, San Jose CA,
Burning the 500 euro notes and asking the staff to pick up the ashes is more sickening than the price of the property. It appears that the gratutious destruction and materialism of Hollywood has spread around the world to the newly rich "Russian" peasants.
Stephen, Los Angeles,
Its easy to throw money away when you haven't earned it.
Maxwells, Middlesex,