Chinese group buys London mixed-use project

A Chinese property and entertainment conglomerate has completed the acquisition of a mixed-use development in London's South Bank regeneration area.

Dalian Wanda Group bought One Nine Elms from Irish investor-developer Green Property. The financial details were not disclosed.

One Nine Elms is a mixed-use development which will comprise 105,000 m2 of prime residential, office and retail space within two towers of 45 and 60 storeys respectively. On completion, the development is expected to have a value in excess of £700 mln (€832 mln).

The scheme will be used by Wanda for a five-star hotel, marking the first move overseas by Wanda’s luxury hotel brand as well as the first luxury hotel to be opened by a Chinese firm outside China.

CBRE advised Green Property on the sale.

Green Property acquired One Nine Elms from Allied Irish Bank in 2008 in a structured deal whereby the bank retained a carried interest in the uplift in the value from 2008 as properties were sold. This has proved to be very valuable to AIB as 2008 represented the trough of the central London market where much of the portfolio is based, Green Property said.

The Irish firm secured planning permission from the London Borough of Wandsworth for the One Nine Elms scheme, working alongside a professional team which included architects KPF and project managers CIT.

Green Property also sold Lunar and Apollo House in Croydon for €92 mln after new 13-year leases were agreed with the UK government. In 2012, Green Property commenced the development of 8 St James’s Square, a prime central London site which will be developed into a 65,000 sq. ft. premium grade office building due for completion in March 2014.

Michael Tapp, director of Green Property, said: 'This is an important transaction for London, which helps to cement its status as the real estate capital of the world. As Chinese investors make an increasing mark in Europe we are also pleased to have concluded a deal with Dalian Wanda, one of China’s most important and vibrant concerns.'

Peter Burns, head of Central London development at CBRE said: '2013 is the year when Chinese investors have begun to make a major impact on London. The sale of One Nine Elms will come to be seen as one of the most significant transactions of a landmark year.'