Hong Kong investment boosts 10,000 home project
A group of private Hong Kong investors has ploughed £300 million into a London regeneration scheme that will result in the construction of up to 3,500 affordable homes.
Property developer Quintain has formed a joint venture with Hong Kong-based Knight Dragon on a £500 million project to redevelop the Greenwich peninsula in south-east London. The deal will allow the new company – Greenwich Peninsula Regeneration Limited – to tap into the £4.6 billion of investment capital held by Knight Dragon parent company New World Development.
GPRL will be 60 per cent owned by Knight Dragon, with the remainder owned by Quintain. Pinnacle Regeneration Group, whose Pinnacle Spaces subsidiary registered to become a social landlord in April, will deliver the affordable housing element of the scheme. It will also provide other services, including investment monitoring.
Chow Tai Fook Enterprises, which is a part owner of New World Development, last year injected £30 million into Pinnacle in a separate deal.
The Greenwich development will include 10,000 new homes. As many as 3,500 of these could be developed as affordable rent properties.
The development will also feature 3.5 million square feet of commercial space to accommodate around 24,000 workers. An additional 5,000 jobs are expected to be created during the six-year construction phase.
‘In a year where the eyes of the world are on London, this provides a great boost for the capital,’ said Perry Lloyd, chief executive at Pinnacle. ‘This partnership creates a unique opportunity to build a new, sustainable community – a community where there is a blend of housing, and is a place where people want to live.’
The landmark deal is expected to be rubber-stamped at a shareholder meeting next month.