The London borough of Newham is set to become the next property hotspot following an announcement by the Mayor Boris Johnson of plans to develop the land north of the Royal Albert dock as a business district set to be worth £6 billion to the UK economy. The site will be developed by ABP China (Holding), a successful commercial developer, who have estimated creation of 20, 000 jobs in this region in what will be the biggest shift east since Canary Wharf was built in the 1990’s.
The development land, which comprises some 35-acres, is situated in the heart of Royal Docks Enterprise Zone and is owned by the Greater London Authority. ABP will be aiming the majority of the business at Chinese and other Asian businesses looking to establish headquarters in our capital as a gateway to Europe. It is the first direct investment by a Chinese developer in London. When it is completed it will provide over 3.2 million square feet of work, retail and leisure space.
Mayor of London, Boris Johnson, said: “For centuries the waterways of east London were the throbbing arteries of UK trade and commerce. This deal symbolises the revival of that great era, continuing the re-invention of this once maligned part of the capital into a 21st century centre of trade and investment.
Creating a third financial district in the capital, this development will act as a beacon for eastern investors looking west, bringing with it tens of thousands of jobs and billions of pounds of investment for the UK economy.”
This will make it the largest UK development of its kind, which is great news for the borough, which has also benefited from the successful and on-going regeneration of Stratford, following the Olympics in 2012. The hope is that the site will boost local employment by some 30% and generate around £23 million in business tax alone, and in addition it is expected to act at a catalyst for further development in the area. It is certainly likely to see an increase in new homes developments to service the area as it grows.
Sir Robin Wales, Mayor of Newham said: “The Royal Docks Enterprise Zone offers an unrivalled investment opportunity and this deal further strengthens Newham’s growing reputation as an ideal destination for international business.
We welcome ABP’s ambitious vision for the Docks which are already home to London City Airport, the University of East London, the Siemens Crystal and the Excel. ABP’s proposals will bring further investment from abroad and unlock future development. It will also create benefits for local people by providing thousands of new jobs and further enhancing the waterfront for people to enjoy.
Newham will work closely with ABP and their UK development partner, Stanhope, to ensure that as many of these jobs as possible are accessible to local residents. Our successful Workplace jobs brokerage scheme is ideally placed to ensure this happens.”
Developers, ABP, have recently completed a large development in Beijing, and they are currently working on a 75 million square foot development in Shenyang in north-eastern China. They will be working with UK developers Stanhope and architects Farrells, and they predict the first occupiers will move in in 2017.
It is the latest in a string of investments in the area including exhibition space at the Siemens Crystal Centre, Emirates Air Line – the UK’s first urban cable car, and new homes development along Great Eastern Quay, and Silvertown Quays. There are also future plans to create the UK’s largest floating village at Royal Victoria Dock. Transport links to the area will be enhanced by the new Crossrail station coming to in 2018.
Chairman of ABP, Mr Xu, said: “I am very pleased and very proud that my company ABP has reached this agreement for the Royal Albert Dock with the Greater London Authority. This project will be hugely significant for both the Chinese and UK economies.
My vision is to develop a world class international business district which will initially target Asian businesses to help them secure a destination in London, which in China is seen as the gateway to both the United Kingdom and the wider European economy. Our plans aim to strengthen trade between east and west, provide new local jobs and deliver benefits for the wider London and UK economy.”