Chi­nese prop­erty in­vestors say they are not spooked by Brexit fears

China Daily (USA) - - BUSINESS - By BOLEUNG in London boleung@ mail.chi­nadai­lyuk.com

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

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