Chinese developer of London's Royal Albert Dock seeks overseas funding

Advanced Business Park (ABP), a private Chinese developer, wants overseas funding for its £1 billion (HK$12.2 billion) project that will transform east London's Royal Albert Dock into an Asia business port.

The company has signed a deal with the mayor of London, Boris Johnson, to develop the 14-hectare port that was closed to commercial traffic in the 1980s.

Xu Weiping, the chairman of ABP, said the project would be divided into five phases, each of which would require an investment of £200 million to £300 million.

Internal capital would account for 30 per cent of the investment and 30 per cent would come from the rent and sales revenue of the project, Xu said.

The company will consider loans from European banks, bond issuance, funds from private equity firms and equity financing to assemble the remaining capital.

"We intend to raise the remaining funds overseas," Xu said, adding that financing in overseas markets was "more transparent and can be on a larger scale".

ABP's capital strength has been questioned in the past because it has completed only one project.