China Minsheng Investment's involvement in £1.7b London development in doubt

China Minsheng Investment, China's largest private investment fund, is delaying its investment in  a £1.7 billion integrated development in east London, seven months after it signed an agreement with the project owner in Shanghai.

In February, the fund announced it had teamed up with ABP (Global), a private Chinese developer, to transform Royal Albert Dock into what was described as a third financial centre for the British capital.

"China Minsheng has not yet become our investor after signing the letter of intent early this year," ABP chairman Xu Weiping said yesterday, adding that both parties still in active discussion.

The announcement of a new strategic investor would take place in London next week, he said.

The 4.7 million sq ft integrated development had also attracted institutional investors in Hong Kong, he said.

"Today, I meet four companies that are looking for investments in the UK," Xu said before flying back to London after a three-day road show in Hong Kong. He said ABP would remain the project's controlling shareholder.

Due to rising construction costs, the total investment cost had soared 30 per cent to £1.7 billion, Xu said. The initial phase of 800,000 sq ft would require an investment of £300 million, he said.