Chinese swoop on Royal Albert Dock site for new financial hub in London as pound falls after Brexit

Plans for a new financial hub are attracting Chinese investment
ABP
Joanna Hodgson18 November 2016

Around £300 million of Chinese money has been ploughed into the capital’s property sector since the Brexit vote, and billions of pounds more are coming to create a new financial district in east London.

Property agent Cushman & Wakefield told the Evening Standard that in the first three quarters of this year, Chinese investment into Central London reached over £1.1 billion - a 39 per cent increase on the same period last year. Around £300 million of that has been since the EU referendum.

Bloomberg reported that Chinese companies are on track to invest £4 billion in London property this year.

Chinese developer ABP pledged to invest £1.7 billion over the next eight years in its Royal Albert Dock project, alongside its partners.

The investment would see 4.7 million square feet of new space become available, including offices to provide a base for Asian and European companies, “and boost trade links with international markets”.

The developer hopes lower rents at the site near London City airport will prove attractive to occupiers, compared to soaring prices in the City and West End.

Gregor Wallace, managing director of Coldwell Banker Commercial, said the development would appeal to number of technology businesses wanting to open new offices.

The hub is due to be built in London's docklands 
ABP

He added: “This development around docklands has great potential. The UK is taking the lead in Europe for tech start-ups, meaning London can grow faster and further. Office occupiers are attracted to state of the art buildings.”

Elsewhere in the Docklands, Sydney-based investment firm ASF, which is backed by Chinese investors, wants to create an exhibition centre of more than two million square feet in the capital.

Under ASF’s proposals, about 300 companies, mainly from China, would be able to lease space for offices and showcasing products.

Richard Divall, head of EMEA capital markets at Colliers International, said: “Chinese investors are drawn to areas of infrastructure improvements where they can buy and develop large areas of land. East London has the fundamental elements that Chinese investors want both in terms of land availability and infrastructure.”

The data on Chinese investment comes a week after the property market celebrated one of the biggest commitments to London’s real estate market since June.

The Chinese investments will allay concerns that Britain leaving the EU could weaken the UK’s image as a place for businesses to invest in.

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