Over recent years we have seen an increase in the number of Chinese developers in the UK who are active across both the residential and, more recently, commercial property sectors. Attracted to the UK’s transparent property market and the structure of the UK’s legal and tax systems, key projects include Greenland’s Ram Brewery in Wandsworth Town Centre, the mixed-use One Nine Elms at Vauxhall (Wanda Group), Citic and Cindat’s joint venture with Brockton Capital on 60 Curzon Street and ABP’s scheme at the Royal Docks, in conjunction with Citic and Brookfield.

Following the outcome of the EU referendum, we do not expect this interest to wane. The consequential weakening of the pound is attractive to non-Sterling denominated investors, with some groups benchmarking as much as a 20 per cent devaluation of currency, making London and the UK a realistic target for groups who prior to this had not developed here. While it has been suggested the announcement to hold plans at Hinkley Point could have wider detrimental implications on Chinese investor interest, long-term investors and developers continue to recognise the UK as economically, historically, legally, politically and socially safe.

For Chinese developers considering the UK, to be successful there are a number of factors which need to be addressed. The main challenge is understanding the local market. The UK planning system, in particular, is very different to the Chinese system, along with the land acquisition process, health and safety standards, environmental and corporate social responsibility. For these reasons often a joint venture can be the most fruitful method.

The success of Chinese developers in the US has principally been because of the availability of groups who can, and want, to co-invest large sums of money into Chinese-led developments – far greater sums than the normal UK standard requirement. However, while Chinese developers are more active in the US and Australian markets on a global level, the UK remains a very important market for them, particularly in the context of Europe.

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