Xinyuan Real Estate, acting on behalf of Xinyuan International (HK) Property Investment, has acquired 50% equity stake in Madison Developments Limited ("MDL"), the developer of the Madison Project at Marsh Wall, London E14 9YT, for a total consideration of €33.1m (£29.11m). The seller was ED Jersey Limited, a 100% owned subsidiary of ED Group Holding Limited ("ED Group").
The Madison Project site extends to 0.38ha (or approximately 0.94 acres) and is located adjacent to Canary Wharf. The planning permission for the development of 53 story building comprised of 423 residential apartments, including 319 private apartments and 104 affordable apartments, with approximately 425 m² of community facilities was granted in March 2015. Construction is currently underway with the completion expected for the third quarter 2020. To date, approximately 40% of the private apartments and 100% of the affordable apartments have been pre-sold.
Yong Zhang, Xinyuan's Chairman, commented: "We are pleased to announce this equity investment in MDL. This is our first step in the UK real estate market and an important milestone for Xinyuan's international expansion strategy. While China remains our core market, we would like to take advantage of our experience in overseas investment and join hands with competitive local partners, and are confident that our investment in MDL will generate favourable returns for our shareholders."
Gordon Crawford, Chairman of ED Group, said: "We are pleased to welcome Xinyuan Real Estate as our partner in this project. The Madison is set to be a landmark building in Canary Wharf, a location we believe will benefit over the coming years, especially upon the arrival of Crossrail later this year. We look forward to working with Xinyuan on their debut investment in the UK to establish a successful, long-term partnership."