Savills has been appointed to work with Royal Albert Dock developer ABP in a groundbreaking international agreement to promote ABP’s business projects worldwide.
This new global relationship was sealed by a formal contractual signing between Savills Group CEO Jeremy Helsby and ABP Chairman Xu Weiping on Wednesday 11 December 2013 at Savills global HQ in London and was witnessed by more than 30 business representatives.
Through the deal, Savills, the international real estate advisor, with a strong presence in Asia, will help ABP achieve its vision to create a new waterfront destination at Royal Albert Dock into a vibrant 24 hour business environment by bringing in enterprises from Asia, the UK and Europe. Savills will also act for ABP to attract occupiers to its developments in Beijing, Shenyang, Qindao and Huangzhou, as well as further global developments as they emerge. This type of worldwide representation between a Chinese developer and an international real estate advisor has never been seen before on this scale. Savills has more than 500 offices and associates around the world and ABP is a significant Chinese developer with global ambition beyond its Royal Albert Dock project and current China projects.
In a further innovative arrangement, Savills will have an on-site presence at Royal Albert Dock to market the site directly to potential occupiers. More than 60 companies from Asia alone have registered a formal interest in taking space at Royal Albert Dock, which will create some 3.5 million ft² (approx. 325,160 m²) of new commercial space, including 3.2 million ft² (approx. 297,280 m²) of offices, with an estimated value of over £6 billion (approx. €7.12 billion) to London’s economy. Corporate occupiers will not only be able to lease space at the 35 acre site but purchase an office headquarters ranging between 5,000 ft² to 200,000 ft² (approx. 464 m² to 18,580 m²)
Speaking at the signing event, Jeremy Helsby comments: “We are delighted and privileged to be working with ABP. Through our global platform we will bring together an international business community, and in particular, provide a link between UK and Asia to assist businesses in transferring seamlessly between the two Continents.
“The Royal Albert Dock scheme has already attracted enormous attention worldwide and we are very excited about working on such a prestigious project which will transform an area of east London into the capital’s newest business district.”
ABP Chairman, Xu Weiping, said: “What we are seeing here is two great companies agreeing to work together to quicken the pace of the success of the Royal Albert Dock development and to create a strong international combined force for the benefit of ABP, Savills and our customers. I am very pleased we have concluded this agreement.”
Sir Robin Wales, Mayor of Newham, adds: "We welcome the arrival of Savills as ABP's real estate partner. This partnership will help to bring further investment from abroad and also demonstrates that the regeneration of the area is moving apace. Savills commitment to the scheme proves that businesses recognize the potential offered in the Docks and are willing to make a significant investment in the area. We look forward to working closely with both ABP and Savills to help deliver our vision for the Royal Docks."
According to Savills data, central London office take-up in the first three quarters of 2013 has totalled 8.2 million ft² (approx. 761,800 m²), the strongest year for tenant demand since 2007. With vacancy rates falling in both the West End and City markets, upward pressure on rents has seen prices rise by 5% this year.