China’s Ping An Bank has provided the initial £100 million of a £500 million development finance package which will fund a luxury residential-led scheme in the Nine Elms area of London.
The scheme’s developer, the Chinese real estate firm Dalian Wanda, said that the initial £100 million drawdown is part of a £500 million facility which will finance the development of the One Nine Elms scheme near Vauxhall in south west London.
The balance of the funding will come from other sources as well as Wanda itself, the firm said.
Debt finance for high-end build-for-sale London residential schemes has become more difficult to source in the last year as lenders have become more cautious about the sector. Some in the market have claimed that there is less liquidity for schemes aimed at buyers paying over £1,000 per sq ft.
One Nine Elms will comprise two towers of 42 and 58 storeys designed by architect Kohn Pedersen Fox. The 1.14 million sq ft scheme will comprise 437 homes and a five-star Wanda Vista Hotel, which will be the first outside China. The project will also contain 3,584 sq ft of retail space.
Dalian Wanda claims that its real estate subsidiary, Wanda Commercial Properties, is the world’s largest property company. It has a portfolio of 133 Wanda Plazas and 84 hotels in its domestic market of China, covering 26.32 million sq m. Dalian Wanda also has a financial group which is involved in internet finance, investment, and insurance. The firm also has a ‘cultural’ arm which owns film, sports, tourism and children’s entertainment companies.
Ping An Bank is a subsidiary of Ping An Insurance group, one of China’s major insurance companies.
“We are pleased to announce the arrangement of financing for One Nine Elms, which will support the successful delivery of this important mixed-use development. On completion, One Nine Elms will bring high quality residential apartments, a five-star Wanda Vista hotel, world-class amenities and public spaces for the community to enjoy,” said Tim Gawthorn, director at Wanda One.
In May, Real Estate Capital reported that Barclays has been appointed by the developer of the high-profile residential ‘Versace Tower’, also located in Nine Elms, to source over £200 million of senior debt finance. Middle Eastern developer Damac Properties is planning to build the 50-storey AYKON Nine Elms luxury tower, which has interior designs by the Italian fashion house.