Xinyuan Real Estate Co., Ltd. Announces Equity Investment in The Madison, London
Xinyuan Real Estate Co., Ltd (“Xinyuan” or the “Company”) (NYSE: XIN), an NYSE-listed real estate developer and property manager operating primarily in China and also in other countries, today announced that it has acquired, from ED Jersey Limited, a 100% owned subsidiary of ED Group Holding Limited (“ED Group”), a 50% equity stake in Madison Developments Limited (“MDL”), the developer of The Madison, London E14, via Xinyuan’s 100% subsidiary Xinyuan International (HK) Property Investment Co Ltd for a total consideration of GBP £29.11 million.
The Madison Project site extends to 0.38 hectares (approximately 0.94 acres) and is located adjacent to Canary Wharf, one of Europe’s largest commercial centres. The planning permission was granted in March 2015 for the site to develop a ground plus 53 story building, comprised of 423 residential apartments, including 319 private apartments and 104 affordable apartments, approximately 425 sq. meters of office space and extensive, new landscaped public gardens. Construction is currently underway and completion is expected in 2020. To date, approximately 40% of the private apartments have been pre-sold and 100% of the affordable apartments have been pre-sold. The Madison project is being managed by LBS Properties.
Mr. Yong Zhang, Xinyuan’s Chairman, commented, “We are pleased to make this equity investment in Madison Developments Limited. 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 Madison Developments will generate favourable returns for our shareholders.”
Mr Gordon Crawford, Chairman of ED Group, commented, “We are pleased to welcome Xinyuan Real Estate as our partner in this exciting development project. The Madison is set to be a landmark building in the Canary Wharf market, a location we believe will benefit over the coming years from substantial investment, including 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.”
Planning permission and development funding secured on LBS’ Hackney Road project
LBS Properties has been working with leading architects Hawkins Brown on securing planning consent for the redevelopment of the disused Mecca Bingo Hall on Hackney Road. In late 2017, the London Borough of Hackney granted planning consent for redevelopment to provide 83 apartments, flexible B1 workspace and a landscaped gardens on the 5th floor podium.
Situated just 300 metres from Hoxton Overground Station and a short walk from Columbia Road Flower Market, Haggerston Park and Broadway Market, the site enjoys a sought after position between Shoreditch, Hackney and London Fields. There are a wealth of popular bars, restaurants and amenities in the immediate area, along with the key employment and transport hub of Old Street Roundabout to south.
LBS Properties has also secured a £47 million senior development debt facility from real estate investment managers, Quadrant Real Estate Advisors. Nick Crawford, Managing Director of LBS Properties, comments: “We are delighted to be working with Quadrant to deliver this high-quality, mixed-use development in one of London’s most sought after areas. The striking architecture, bespoke interior design and extensive landscaped roof gardens will combine to create a market-leading development, set on the doorstep of all the amenities of Shoreditch and Hoxton.”
Kurt Wright, CEO of Quadrant Real Estate Advisors LLC, comments: “Quadrant is pleased to facilitate funding of the Hoxton Development. LBS Properties is a highly skilled developer and we are proud to be part of this project.”
The development is due to complete in 2020.
LBS Properties set to develop 36,000 sq ft office scheme with new Angel acquisition
Award-winning London developer LBS Properties has secured a freehold office development site in Angel, Islington N1 for £12.6 million, simultaneously securing funding from Cheyne Capital for the delivery of a new 36,000 sq ft office scheme.
Located at 65-70 White Lion Street, a three-minute walk from both the popular Upper Street and Angel underground station, the cleared freehold development site spans 0.29 acres and has planning permission for a high quality new development arranged over six floors.
LBS Properties has secured a £24 million debt facility from alternative asset manager Cheyne Capital, allowing the delivery of the proposed scheme, designed by Tasou Associates. The new development is intended to achieve a BREEAM rating of “Excellent” and will include high levels of natural daylight throughout with glazed frontages and internal light wells, with average floor to ceiling heights of three metres. There will be expansive roof terraces, two passenger lifts and 64 bicycle spaces, plus shower facilities at basement level. Construction is due to start later this year.
Angel is one of most popular areas in the wider City Fringe market, with a wide array of amenities and excellent transport connections from Angel underground station, providing fast access to Kings Cross, the City and West End. A number of new mixed use developments have emerged across N1 in the past few years, adding to the retail offering and cementing Angel as a key submarket for TMT and other sectors.
Nick Crawford, Managing Director at LBS Properties, comments: “This represents an exciting opportunity to deliver an outstanding new office building, located right at the centre of the Angel submarket. We are delighted to have simultaneously closed the development funding with Cheyne, who share our vision for the scheme – we expect to begin construction this year and complete the building in 2019. We are confident the high-quality design, extensive outside spaces and excellent sustainability credentials will make this an attractive option for a wide variety of tenants”.
Arron Taggart, of Cheyne Capital, comments: “Cheyne is delighted to be assisting with the financing of this high-quality office project which we believe has strong fundamentals. The quality of location, target market, specification and most importantly, Sponsor, provides us with a great deal of comfort in funding this sort of development. We see these sorts of attributes, as well as our ability to provide a risk adjusted, innovative approach, as important differentiators and key to navigating what could be a challenging market environment over the next couple of years.”
Madison Developments and LBS Properties award £150m The Madison, E14 contract to Balfour Beatty
Balfour Beatty, the international infrastructure group, has been appointed as main contractor on The Madison, a 53 storey residential tower in E14, adjacent to Canary Wharf, being developed by award winning London developer LBS Properties.
The construction contract, worth £150m, will see the contractor follow on from its initial £1m pre-construction services win early in 2016.
Rising to 187 metres and located on Marsh Wall, The Madison is a striking new scheme comprising a 53 storey landmark tower, designed by globally renowned Make Architects, housing 423 high specification studio, one, two and three bedroom homes, including 104 affordable homes. Many of the homes will enjoy outside space and there will be an expansive collection of residents’ facilities, including a hotel-style lounge, gym, swimming pool and 24 hour concierge.
Piling works are currently underway, with commencement of the excavation of the basement and construction of the main concrete frame imminent. The entire project is due for completion in 2020 and early sales success has been positive – with the development now over 35% sold.
Nick Crawford, Director at LBS Properties, said: “Balfour Beatty has impressed us since the initial pre-construction services contract was awarded and we now look forward to working together to see the project through to completion.”
Dean Banks, Managing Director of Balfour Beatty’s UK Construction Services business, said: ”Following a successful partnership with LBS Properties during the pre-construction phase, we’re delighted to have been appointed to deliver full construction of this iconic structure. Our in-depth knowledge and expertise will ensure that we can efficiently and effectively, deliver this complex building and further support the on-going transformation of the local area.”
LBS secures £135m development loan for London residential tower The Madison
LBS Properties has secured a £135m senior development loan from ICG-Longbow to fund the construction of The Madison residential tower near Canary Wharf.
The loan to finance the 53-storey building, which will comprise 423 flats including 104 affordable homes, is the first deal that the ICG-Longbow Development Fund has done inside the M25.
“We had been keeping our powder dry in London, having been active in regional cities, but we now think there is a contrarian opportunity to deploy funds and to achieve sensible risk-adjusted returns,” said Adam Hayner, managing director of the ICG-Longbow Development Fund.
Since the scheme’s launch at the tail end of 2015, more than 35% of the private flats have been sold and Network Housing has agreed a deal with LBS to take the affordable homes.
LBS director Nick Crawford said that the deal marked a “significant milestone”.
“In the last 12 months, we have secured a strong forward sales position on both the market and affordable housing, appointed a main contractor and undertaken substantial early-stage construction works”.
The scheme, which was designed by Make Architects, features a hotel-style residents’ lounge, a gym, a swimming pool and a 24-hour concierge.
It is located a short walk from South Quay DLR and Canary Wharf Underground stations and is due to complete in 2020.
The Hudson Collection, From Levels 30 – 51 At The Madison, E14 Has Now Launched
LBS Properties is excited to announce the launch of The Hudson Collection at The Madison, E14.
Following the successful launch of The Madison Collection on levels 16 – 29 late last year, The Hudson Collection has now been launched, offering a range of studio, 1, 2 and 3 bedroom homes from levels 30 – 51.
For more information please visit The Madison website, where you can view images, floorplans and register your details for a call back from our sales and marketing professionals.
You can also visit The Madison Marketing Suite, where you will meet our friendly staff, explore the scheme with our interactive scale model, learn about the development and local area with our touch screen media table and experience our 1 bedroom show apartment.
The Madison Marketing Suite is conveniently located opposite The Madison at 223 Marsh Wall, London E14 9FJ.