The upcoming regeneration of London’s Royal Albert Dock by Chinese developer Advanced Business Park (ABP) is one of the most eagerly anticipated projects in the capital at present, with the aim of creating the city’s third financial district. This week, it has been announced that China Minsheng Investment Corp Ltd will provide £1 billion worth of investment into the development project, marking the firm’s first major investment in an overseas scheme.
China Minsheng was established in August of last year by the heads of 59 major Chinese companies, and is at present the country’s largest private investment firm. It is headed by the former head of the state owned Minsheng Bank Corp, Dong Wenbiao, and controls a capital of £5.2 billion.
The sum will allow China Minsheng to become the majority investor in the refurbishment of the Royal Albert Dock and has fuelled hopes of an uptick in Chinese investment for other key projects throughout Europe.
CEO Li Huaizhen says; “The investment is a strategically important beginning for our exploration in the European market. We will work with global companies to bolster Chinese firms’ global drive.”
The regeneration of the Royal Albert Dock was first announced in 2013 following lengthy negotiations between ABP and London Mayor Boris Johnson. It will transform the currently derelict 35 acre site into a booming financial district, utilising the proximity of London City Airport to forge international contacts and thereby act as a gateway for Chinese firms keen to gain a foothold in the lucrative British and European markets.
Chinese investors have become increasingly prominent in the UK commercial property market, with the country currently the top European destination for Chinese businesses seeking investment platforms.
In part, this boom was due to the Eurozone crisis and Britain’s recession, which saw the value of commercial assets plummet sharply. This provided Chinese investors with the opportunity to snap up properties in excellent locations at bargain prices, and investment has continued to grow despite the strengthening UK economy.
This latest investment by China Minsheng will allow for the construction of several office tower blocks in the Docklands, providing Grade A office supply to a London market where demand continues to grow. The regeneration will also include shops and leisure facilities, creating up to 20,000 new jobs and adding £6 billion to the UK’s economy.
Should work remain on schedule, the regeneration project is expected to complete in 2017 and ABP are already taking enquiries from a raft of prospective tenants keen to snap up space in the area. However, with a high price tag and even higher level of ambition, only time will tell whether the capital city’s newest financial district will truly rival the City and Canary Wharf.
