Luxury Vaud real estate project defies crisis

A new living concept that combines spectacular residential accommodation with a five-star hotel service will soon be available in Vaud. Du Parc - Kempinski Private Residences above Vevey will offer deliriously luxurious apartments in a landmark building, combined with Kempinski hotel services and James Bond-proof security. Partnered with Davidoff for the cigar salon and Givenchy for the spa, it is aimed at the very, very rich. “We are not building buildings. We believe that we carve and design places for experiences to occur, for stories to be lived,” says Nicholas Garnier, the CEO of Swiss Development Group SA that is masterminding and conducting the venture.
Steeped in history, the former Hotel du Parc at Mont Pélerin in Chardonne was just what Garnier and his group were looking for in order to develop their concept of high-style living. “We are fascinated by the story of the building and want to give new life to the forgotten mansion” he said.
New York socialites, Russian aristocrats, the 19th Century writer Victor Hugo, and 20th century fashion designer Pierre Cardin, are a few of the guests who contributed to the hotel’s fame in its previous reincarnations. The Mont Pelerin Society, the liberal think-tank that continues to this day and that has counted no less than seven Nobel prize winners, including Milton Friedman, also originated there.
Located on verdant slopes just above the UNESCO World Heritage site of the Lavaux vineyards, the 140 rooms of the former hotel will be converted into 24 “beyond luxury” apartments in the Belle Epoque style. A two-bedroom apartment of 200 square metres can be snapped up for four million francs while the largest property, covering a surface of 630 square metres, will cost 20 million francs.
The “lifestyle facilities” will include hotel services provided by the neighbouring five-star Le Mirador Kempinski Mont-Pelerin and optional international concierge services by Quintessentially, who “help with all your needs, however extraordinary or difficult they may be.” Need an elephant to cross the Alps?

?

Security is also a major consideration. Closed circuit television with biometric recognition will offer vanguard protection for all the residents, as well as their guests. Furthermore, owners will be able to monitor their properties at a distance, with 24-hour guards ready to intervene at all times. Ian Fleming, the inventor of James Bond, could not have dreamed of a safer place.

The apartments will be completed by 2011 if all the necessary building permits are obtained in time to allow construction to begin this autumn. To pave the way, the Swiss Development Group has been forced to become a master at PR to cultivate ties with all the relevant authorities.
Although Serge Jacquin, the mayor of Chardonne does not anticipate many new jobs for the locals, he recognizes that the real estate transfer tax in the event of sales would be a windfall for his commune. He is hoping that the administrative procedures will run smoothly.
The Montreux-Vevey region economic development office has been kept abreast on the progress of a project that it considers to be “truly innovative”.
The main backer of the investment, currently evaluated at 120 million francs on top of the 18 million franc purchase price for the property, is said to be the Vaud cantonal bank (BCV). The identity of SDG’s other financial partners has not been revealed.
“We expect the majority of buyers will be Swiss citizens or residents, although we predict that about a third will be new residents attracted not only by the exceptional life quality but also by the fiscal advantages that Switzerland can offer,” explained Garnier, “including being freed of inheritance taxes”.
Kempinski Private Residences were natural associates for this enterprise. A subsidiary of the German Kempinski SA group, they already provide private residential properties with their “legendary services” in various locations such as Croatia, Astana, the new capital of Kazakhstan, Bodrum, Estepona, San Lawrenz Gozo, Dubai and Beirut. But the Mont Pélerin project, unlike the others, is not attached to a resort. Nor is it in an urban environment.
“There is definitely a market for places that are half hotel and half residency” says Jean-Claude Gauer, chairman of the board of the prestigious Leading Hotels of the World, and director of the Lausanne Palace.  “Just look at the many examples in New York, like the Plaza or the Mark, or those in Abou Dhabi or Cap Ferrat,” he added.
Leonard Cohen, chief development officer of Kempinski told Swisster that the Du Parc project is a perfect example of a current trend that offers fewer units in a given space, more luxury, more exclusivity and more services. In his opinion, the residential guests are looking for a lifestyle rather than a financial investment.
Asked whether the current economic crisis would alter his plans, Nicolas Garnier said: “We believe our market is a ‘niche’ since the offer is very narrow. We also strongly believe that investors are always eager to buy quality, because quality is a shelter for wealth.”
As if to defy the current economic gloom and attract the kind of media attention that is necessary for a project of this size, the launching party included a spectacular light show capped by fireworks.
Does the project have a chance? “Le Mont Pélerin is not Gstaad, but the Kempinski people are too smart to have launched such a ‘pharonic project’ without a reservoir of the right clientele,” concluded Gauer.