DevDosh Ltd recently found one of the largest property developers in China a well- known company called CC Land have set up operations in London’s swanky district ‘Mayfair’ following their recent acquisition of the “Cheesgrater” building, with the long term objective of purchasing more property in the capital.
The company advised that it along with other Chinese companies are looking to purchase more UK property in the London area.
The UK operation will start of small with only five to six employees at the beginning, the company is already in discussions regarding a housing led project in London with another UK property company, said the group’s deputy chairman, Dickie Wong. It is close to agreeing a lease on a Mayfair office space.
“Despite Brexit and the political uncertainty, we are here for the very long term,” Mr. Wong said. “This trend [of Chinese purchasers buying London buildings] will continue because of the weakening of sterling. It is easily 20 per cent cheaper than before the referendum.”
Mr. Wong told The Financial Times that his company CC Land was eyeing up more purchases of high-profile London buildings but was also interested in development opportunities.
“We want to diversify into gateway cities around the world and London is the first stop,” he said. He added that “we won’t go out of London” to the UK regions because of the liquidity of the London real estate market. “We are not looking for minority stakes or passive investments — we have to be in control.”
CC Land originates of Chongqing in Southwestern China and have ties to the company YT Realty who own £1.6bn of London properties including a Travelodge hotel at Liverpool Street. Both companies are controlled by the tycoon Cheung Chung-kiu.
The company has received calls from other Chinese companies interested in UK property purchases looking for advice since the company bought the Leadenhall Building back in May
This is the biggest UK property deal done by a company from China for any single building, this was funded by Bank of China, HSBC and ING.
In DevDosh Ltd opinion, there is increased interest in UK property from property magnets in China due to the high property prices places like Hong Kong are currently experiencing.
Nick Braybrook, partner at property agency Knight Frank, said about £2.4bn of City of London property was currently under offer, with £2bn of those offers by Chinese and Hong Kong buyers. “There is still a lot more to come, and new private investors are still popping up from that region,” he said.
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