IT all started when distressed UK vendors began raffling their homes in order to beat the slump. Now this novel way of doing business has been hijacked by canny developers – only the prizes are bigger and a whole lot more exciting. Billed as the world's largest 'free' prize draw, a property developer in East London is giving away 11 serviced apartments, five minutes walk from Liverpool Street station, worth £8m to one lucky winner. The competition is limited to 200,000 entrants who have to register online at www.winalondonpad.co.uk to win. So far 4,000 people have signed up.


The only catch, and there is just one, is that entrants must purchase either a Creative mp4 player (worth £60) or shop online with any of the developers recommended partners – big name companies such as Asda, Virgin Media, Three Mobile and HSBC.


For Irish entrants shopping online isn't really an option as it involves taking out a mobile phone contract, home insurance or opening a current account with a UK-based company – but it's only a minor detail.


Rafik Patel, director of MIA Developments Ltd, the developer behind the competition, says that the draw is totally legal and above board and has gone through rigorous scrutiny with lawyers and the companies involved.


The cost of the apartments will be covered through either mp4 sales (a quick calculation reveals that MIA could net around £12m, although this is likely to be less as they would have secured a discounted price for them) or online purchases, which MIA will receive a percentage from.


Additional money made will cover the cost of marketing the competition (which is being launched worldwide, except in the US due to strict gambling laws), legal fees, stamp duty and setting up the website, etc, with a large portion, £600,000, going towards redeveloping the cardiac ward in Great Ormond Street Children's Hospital.


The lucky winner of the competition can either sell the apartments or rent them out – or even live in one. "They will be offered free financial advice to help them make the best decision," says Patel.


For those who do go down the letting route, Patel says it's possible to net an annual income of around £496,000 for all 11 apartments. The winner can arrange this themselves but MIA has agreed to let out and manage the properties at a discounted rate. (The company successfully rents out two other blocks in the same development).


The apartments are not ready yet but are due for completion January 2009. The block is made up of nine two-beds and two one-beds. Interior specification is top class and boasts Italian designer kitchens, steam rooms, Jacuzzis, remote control lighting and hardwood flooring throughout.


The draw will be televised and takes place on 2 March. All entrants are invited to attend.