Hong Kong Investor Sells £1.7B Of London Apartments
Several Hong Kong and Chinese investors sold out of London development projects over the last two years, hit by domestic woes and the need to repay debt.
As a result, projects initiated by Far Eastern property companies have unloaded huge volumes of apartments in the UK capital, including CC Land, one of the most prolific Asian investors in London over the past decade.
Despite economic volatility, CC Land has sold about 600 apartments across two London developments for close to £1.7B, according to the company’s 2024 annual report.
At its Thames City development in Nine Elms, 495 units have been sold for a total of £989M, the report says. The first phase of the 1.7M SF project is completed, with Phase 2 set to start later this year. The three-phase, 12-building project will ultimately comprise 1,500 units.
The scheme was conceived in 2017 and began life as a joint venture between CC Land and Chinese developer R&F Properties. Companies controlled by CC Land took full control in 2022 when R&F sold its stake to pay back debt. Presales undertaken at the scheme meant the construction loan on the project was repaid in 2023, 17 months ahead of schedule.
At the Whiteley project near Hyde Park in west London, 99 units have been sold for £651M, CC Land said in its accounts, with 65 of those already delivered to buyers. A hotel has been presold to Gruppo Statuto for £180M.
CC Land teamed up with fund manager Mark to redevelop the former department store built in 1908. That 1.1M SF project included 139 apartments, a 109-room hotel, and retail and restaurant space.
The joint venture has refinanced the debt on the scheme and put in place a new £505M loan, CoStar reported.
CC Land also owns the Cheesegrater office building in the City, which it bought for £1.15B in May 2017, and One Kingdom Street in Paddington, which it bought for £265M earlier that year. It was looking to sell the latter asset but pulled the sale late last year.
The company is listed on the Hong Kong Stock Exchange, but it is majority-owned by Chinese billionaire Cheung Chung-kiu, who made money in retail before moving into real estate.
