Henry Cheng Kar-shun’s Knight Dragon will take 60% stake in joint venture with regeneration specialist Quintain
A Hong Kong billionaire is to pour about £500m into a development scheme near the O2 arena on the Greenwich peninsula that includes plans for up to 10,000 new homes.
The London-focused regeneration specialist Quintain has formed a joint venture with Knight Dragon, controlled by Henry Cheng Kar-shun, who chairs the £4.6bn conglomerate New World Development. Knight Dragon will take a 60% stake in the scheme.
Quintain’s previous partner, the Australian developer Lend Lease, is selling its 50% stake for £100m. Knight Dragon will provide about £300m of debt funding and will pay Quintain nearly £80m over the next six years, although the developer estimates it could receive up to £150m from infrastructure repayments and land fees. Quintain’s shares leapt 27% on the news.
The deal marks the second time this month that an Asian company has bought a slice of London, after the Malaysian investors SP Setia and Sime Darby were named as preferred bidders for Battersea power station.
The Greenwich peninsula scheme comprises up to 10,000 new homes, a 3.5m sq ft commercial district, shops, hotels and schools. It is Quintain’s second most valuable asset after its Wembley site.
Maxwell James, Quintain’s new chief executive, said it was a transformational deal for the company. “Together we are well placed to turn our vision for this landmark project for London into reality, creating thousands of homes and jobs in the process,” he said.