Xinyuan Real Estate, an NYSE-listed Chinese real estate developer and property manager, has made its first foray into the UK property market with the purchase of a 50% equity stake in the developer of The Madison, London from ED Group Holding for a total of £29 mln (€33 mln).
The Madison Project site comprises 0.38 hectares and is located adjacent to Canary Wharf. It has planning permission in place for a 54-storey building, comprising 423 residential apartments, including 319 private apartments and 104 affordable apartments and around 425 m2 of office space.
Construction is currently underway and completion is expected in 2020. To date, approximately 40% of the private apartments have been pre-sold and 100% of the affordable apartments have been pre-sold.
Yong Zhang, Xinyuan’s Chairman, commented, 'This is our first step in the UK real estate market and an important milestone for Xinyuan’s international expansion strategy. While China remains our core market, we would like to take advantage of our experience in overseas investment and join hands with competitive local partners, and are confident that our investment in Madison Developments will generate favorable returns for our shareholders.'
'We are pleased to welcome Xinyuan Real Estate as our partner in this exciting development project,' added Gordon Crawford, chairman of ED Group. 'The Madison is set to be a landmark building in the Canary Wharf market, a location we believe will benefit over the coming years from substantial investment, including the arrival of Crossrail later this year.'
