So when dynamic Dragon James Caan invited us down to Knightsbridge to view his

, managed by

, we were hardly going to turn him down.

So that is how Bridging and Commercial found themselves heading round the corner from Harrods on Tuesday lunchtime to have a look at the ultra-prime property – and interview the man himself.

Strolling around the £6.95 million Grade II town house that he and his business partner, Kam Babaee of

, acquired and refurbished, Caan tells us about why he has chosen now to enter into the high-end residential market. 

B&C Editor Louise Fernley with James Caan 

As the serial entrepreneur fixes Bridging & Commercial with that famously penetrative stare, he says slowly: “My philosophy in business has always been to observe the masses and do the opposite.

“The general consensus is that the market is going down and people aren’t looking for this kind of property, but I believe at the moment that there is a demand and it’s much greater than supply.”

He insists, however, that HB Real Estate did a great deal of due diligence before its foray into the luxury residential market. “We spoke to a number of estate agents who didn’t have anything [prime properties]. If they did, the properties were outdated and desperately needed modernising – and who wants to spend millions on one of these properties and then spend more time and money doing it up?”  

The house, 14 Trevor Street in SW7, is certainly done up, with gleaming marble and glass finishes throughout, Swarovski crystal doorknobs and state of the art security systems.  

The open-plan kitchen and living room

So, would James Caan live in a home like this?

“If I chose to live in central London, I would go for something like this,” he nods. “I don’t think it’s over the top, it’s very tastefully done and it makes clever use of the light, which I think is critical for a home.”

The second living room

Also at the viewing is bridging lender

, who funded the opulently designed house last December when it was just a “building site”, according to CEO Jonathan Samuels.

“From a credit perspective we could see that it was a good project in a great location and with quality borrowers,” Samuels says, as he marvels at the finished product. “Nevertheless, when we visited and it was little more than a building site we did need a leap of faith.”

Kam Babaee, Matt Smith of Drawbridge Finance, James Caan and Jonathan Samuels, CEO of Drawbridge Finance

Looking around the luxe furnishings and shiny white interior it doesn’t seem like a family home, as the brochure describes it, and Caan confirms that estate agents have reported a lot of interest from City bankers.

“It’s funny; when we first bought this property last year I don’t think any City banker was considering buying a £7 million house in Knightsbridge,” he laughs.

Did this not panic the tycoon somewhat?

He thinks for a moment. “No. I would have been concerned if the location had been different, but the golden triangle of location – Chelsea, Mayfair and Knightsbridge – is never going to be too badly affected, as the market here is international.”

So HB Real Estate bravely decided to plough on with investing in prime property, even when market values were plunging and scores of property companies were going bust – and now it looks like Caan’s commitment has paid off.

He smiles: “Back then everyone was moving away from property and my one rule in business is to never follow the herds. It really is all about location, location, location. If you stick to that you can’t go wrong.” 

Louise Fernley interrogating James Caan

Kam Babaee, Caan’s colourful business partner, adds that HB Real Estate will be completing on another Knightsbridge property in the next few days, although this one is twice the size of 14 Trevor Street at 10,000 sq ft and four times the price at a whopping £35 million.

At this rate, the £100 million that the company is looking to invest over the next 24 months will run out pretty quickly. “That fund is Phase One; we’ll probably invest that in 12 months and then invest a further £100 million,” Caan says casually.

The partners are now inviting property entrepreneurs to approach them with projects that require investment. Pitches will be accepted in a Dragons’ Den-style format – of course – and, if successful they will be offered funding of 90% of the property value, as long as the investee puts forward 10% of the deal and properties are located within prime London locations.

By Louise Fernley and Rebecca Hobson