The Kwok family and Ballymore have made a huge bet on the London residential market by buying a £1bn skyscraper scheme in the Isle of Dogs, E14.
Through its controlling stake in listed developer Sun Hung Kai Properties, the Hong Kong family has bought two connected sites from Galliard with planning consent for six towers rising to 44 storeys in a joint venture with the Irish developer.
In total, the 898-home 6-8 South Quay and 615-home 3 Millharbour, collectively known as Millharbour Quarter, will deliver 1,513 homes on the Millwall Dock.
The pair paid £50.8m for the sites, according to the Land Registry, through the companies Great Eastern Nominee 1 and 2, and which list Sean and John Mulryan of Ballymore and board members of Sung Hung Kai as directors.
It is one of the largest residential deals of the year and a fillip for the central London market.
See also: Greystar sets sights on record-breaking Croydon tower
While the Isle of Dogs has not suffered quite the same loss of confidence and negative publicity as Vauxhall, its glut of prime flats has still been hit hard by negative sentiment. Sales on schemes have slowed and some have been marketed for the rental sector.
Galliard itself forward sold an adjacent 400-flat site, now known as Sailmakers, to Greystar for a PRS development in 2015, while Ballymore has begun to sell nearby schemes on the Royal Docks – alongside others – to the rental market.
The Kwoks however, like a number of Asian investors, have remained bullish about the prospects for the London market. Investors are betting on Brexit fears being overblown, or are hoping that a further currency devaluation will open the door to a flood of international pre-sales.
See also: Is the next wave of Hong Kong cash on the horizon?
Alongside their investment into Lillie Square with Capco at Earls Court, they announced another tie up with Ballymore in 2017 to become partners in the Goodluck Hope scheme in Poplar, a riverside development of 800 homes.
Ballymore too has been no stranger to finding Asian capital for its sites, having agreed deals with Malaysia’s EcoWorld and Singapore’s Oxley to bring forward a number of its sites in the capital.
To send feedback, e-mail alex.peace@egi.co.uk or tweet @EGAlexPeace or @estatesgazette
