Hong Kong investor buys London development site
Hong Kong–based Wanda Commercial Properties, a subsidiary of Dalian Wanda, has bought the 10-acre Nine Elms Square located near the River Thames in London for £470 million ($595 million).
The sellers were 50-50 joint venture development partners St. Modwen Properties and Vinci.
Completion of the sale is expected to occur later in the summer, following demolition of the former New Covent Garden flower market. Plans for the site include a mixed-use development that features a residential tower.
St. Modwen said £70 million ($89million) of its share in the proceeds will be held in a restricted development account to fund its share of future obligations with respect to completion of 500,000 square feet of new purpose-built market facilities and associated infrastructure.
The remainder will be used by St. Modwen to reduce debt and fund ongoing development activity.
St Modwen said the sale price was in line with book value, which includes a full provi