Published: 2024-03-04 by, News Team in the Business & Finance news category

Property Developer Kam Babaee Faces Financial Turmoil Following Legal Disputes

A prominent local real estate developer, known for his appearances on television shows focusing on the renovation of high-end properties, has been declared bankrupt.

Kam Babaee, aged 55, had lavishly transformed his former residence, The Vicarage in Stamford Brook. However, financial woes ensued following his divorce and a legal dispute over a housing project in Chiswick.

His financial liabilities exceeded £8 million, including £1.5 million owed to his ex-wife and £765,000 to Leighton Denny, the celebrity nail technician, who encountered issues with the quality of the home Babaee constructed for him. Despite a court order in April 2022, Mr. Denny has not received payment.

The bankruptcy petition was initiated by the private bank that extended an interest-only mortgage of £5,950,000 for The Vicarage in 2012. Despite initially listing the seven-bedroom property for £9,000,000 and subsequently reducing it to £6,950,000 through agencies like Hamptons, Knight Frank, and Dexters, the house remains unsold.

During the bankruptcy hearing at the High Court, Judge Sally Barber determined that the property's value at 20 Stamford Brook Road was £2 million less than claimed by Babaee. The mortgage, which was expected to be settled by 2018, has now accumulated to £6.8 million due to accrued interest. Judge Barber concluded that Babaee was "hopelessly insolvent" and his projections of generating income to repay debts were unfounded.

Babaee's background traces back to his family's relocation to England during the Islamic Revolution in Iran. He ventured into luxury property refurbishment, establishing his company, K10 Development, with support from John Caudwell, the billionaire behind Phones 4 U. Notable projects included the renovation of ballerina Margot Fonteyn’s £75 million residence in Knightsbridge.

His pride project was the renovation of the Stamford Brook house, originally constructed in 1886 by architect Charles J Gladman as a vicarage for St. Mary’s Church, later converted into luxury apartments in 1984. The renovation aimed to preserve its Gothic essence, featuring faux ruins in the garden and an original oak staircase. The property gained attention through Babaee's appearance on the BBC2 reality show "Crazy Rich Agents: Selling Dream Homes," claiming visits from celebrities like will.i.am, Amy Winehouse, Geri Halliwell, and the Jackson brothers.

The property remains listed for sale on the Hamptons website for £6,950,000.

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