Green Property, the Irish and UK property investment and development company, has agreed to sell One Nine Elms in an off-market sale to China’s largest premier commercial property and entertainment conglomerate, Dalian Wanda Group. One Nine Elms is a mixed-use development which will comprise 1.13 million ft² (approx. 105,000 m²) of prime residential, office and retail space within two towers of 45 and 60 stories respectively. On completion, the value of the development is expected to be in excess of £700 million (approx. €817 million).
The scheme will be used by Wanda for a five-star hotel, marking the first move overseas by Wanda’s luxury hotel brand as well as the first luxury hotel opened by a Chinese firm outside China. CBRE advised Green Property on the sale.
Green Property acquired One Nine Elms from Allied Irish Bank in 2008, in a structured deal where the Bank retained a carried interest in the uplift in the value from 2008 as properties are sold. This has proven to be very valuable to AIB as 2008 represented the trough of the central London market where much of the portfolio is based.
Green Property secured planning permission from the London Borough of Wandsworth for the ambitious One Nine Elms scheme, working alongside a professional team which included architects KPF and project managers CIT.
Green Property also sold Lunar and Apollo House in Croydon for £78 million (€92m) after new 13-year leases were agreed with the UK Government. In 2012,Green commenced the development of 8 St James’s Square, a prime central London site which will be developed into a 65,000 sq. ft. premium grade office building due for completion in March 2014.
Stephen Vernon, Chairman, Green Property said: “Nine Elms is arguably the most exciting regeneration project in Europe and we are proud to have played our part in it. We are very pleased that Dalian Wanda, one of Asia’s fastest-growing and most exciting development companies, will now lead the development of One Nine Elms and bring it to its next and final stage.”
Pat Gunne, Managing Director, Green Property, added: “We are incredibly proud to have been involved in the development of one of London’s great tower projects which will be a significant addition to the city’s spectacular skyline. We played a central role in the transformation of an obsolete 1970s office building into a fully approved mixed-use tower complex. We are delighted to have partnered with Dalian Wanda in this transaction, their first property investment project in London, and that they will now take the project through to completion.”
Wang Jianlin, Chairman, Dalian Wanda Group said: “The One Nine Elms site stands out as an exciting chance to be part of the transformation of an important part of one of the world’s greatest cities. The London property market has excellent investment opportunities and we have confidence that Wanda’s strength and expertise will see The Wanda Hotel become the premier hotel in London, further promoting development in the area.”
Peter Burns, Executive Director, Head of Central London Development, CBRE said: “At over 200 metres tall, One Nine Elms will enjoy a commanding view over the exciting Nine Elms regeneration area and has the potential to set the standard for mixed-use development in London.”
The Mayor of London, Boris Johnson, said: “I warmly welcome Dalian Wanda’s investment into London as part of our plans to dramatically transform Nine Elms into a stunning quarter of the capital, providing thousands of new jobs and homes. City Hall and my promotional agency, London & Partners, have worked tirelessly with Dalian Wanda Group to secure this cracking deal, which is yet another sign of the soaring global confidence in London as a world-beating place to live, work and do business.”
One Nine Elms
One Nine Elms will become one of Western Europe’s tallest residential schemes and will be built in the largest redevelopment location in Central London. The new mixed-use development will be spread over a two acre site and comprise 1.13million sq. ft. of prime residential, office and retail property within two towers reaching 45 and 60 storeys connected by a high level link bridge. The value, once developed, is expected be in excess of £700 million.
Reaching 205 metres, taller than the London Eye, The Gherkin and The BT Tower, One Nine Elms will take its place in the London iconic skyline upon completion, which is expected to be in 2016/2017.
With commanding views over London, Nine Elms and the new US Embassy site, the residential element of the scheme will include 436 private homes above an office and premium hotel.
The project has already obtained full planning consent.
Source: FTI Consulting