Chinese property investors say they are not spooked by Brexit fears
Major Chinese property investment deals are still forging ahead in Britain, as China’s appetite for the UK property market remains strong despite fears that buyers may turn their back on the market because of Brexit.
In a sign of post-Brexit confidence and that London is open for business, Chinese developer ABP, together with CITIC, have agreed to invest around 300 million pounds ($378.9 million) in the first phase of the 1.7 billion pound project at the Royal Albert Docks in East London.
Four Chinese banks will provide 1.2 billion pounds and ABP’s development partner, Thailand’s Charoen Pokphand Group, will hold 25% equity in a platform company — The East London Development Group.
ABPChairmanXuWeiping told an East London-China Investment Summit: “These major investments are a vote of confidence in the UK and London market following the Brexit vote. ABP is delighted to be working alongside CITIC Group and Charoen Popkphand Group, two of Asia’s biggest enterprises, to deliver the Royal Albert Dock project.”
It’s expected that some 30,000 jobs will be created upon completion and it’s been hailed as the third financial hub of the city, following the likes of City of London and Canary Wharf.
And, that project is just one of many that Chinese companies have invested in London’s market.
Sino-Australian investment firm ASF, meanwhile, is one of three shortlisted bidders for the regeneration of the Albert Island site in the Royal Docks area.
Last week, China’s thirdlargest developer Greenland Group vowed to go ahead with building the Spire in West India Quay — set to be the tallest residential building in Europe— whatever the outcome of the Brexit negotiations, at a cost of800million pounds and scheduled for completion in 2020.
Also, Asian Growth Properties Limited purchased an office building in London for around 154 million pounds and there’s also the Wanda One hotel and a residential project south of the Thames by the world’s largest property developer, DalianWanda.
With property cooling measures being introduced by Beijing and the pound falling to a 31-year low, Chinese property investors have been seizing the opportunity to snap up commercial properties and luxuryhomesinLondon.
ABP and CITIC have agreed to invest in the first phase of the 1.7 billion pound project at the Royal Albert Docks in East London