International Property

New World’s Cheng to launch US$11.97 billion London residential project in Hong Kong

Units in Greenwich Peninsula are priced between £550,000 and £2.1 million each

PUBLISHED : Tuesday, 17 April, 2018, 9:33am
UPDATED : Tuesday, 17 April, 2018, 8:09pm

Hongkongers are getting the chance to buy in to a new development in London with flats in a waterfront building coming on to the market.

Henry Cheng Kar-shun, chairman of Hong Kong’s New World Development, will release his £8.4 billion (US$11.97 billion) redevelopment project in East London to local buyers on Friday, April 20.

Knight Dragon, a company that he owns privately, will test interest among Hong Kong investors with 86 units at the Greenwich Peninsula development. The units are priced at between £550,000 and £2.1 million each. 

The units range from one to three-bedroom apartments, as well as loft penthouses, measuring from 572 sq ft for studio flats to 1,758 sq ft for penthouses.

The average price is about £900 per square foot, according to Richard Margree, the chief executive of Knight Dragon.

Greenwich council approved Cheng’s master plan in 2015 to build more than 15,000 new homes as part of an estimated £8.4 billion transformation.

It will be London’s single largest regeneration project, with 48 acres of open green spaces, as well as 3.5 million sq ft of shops, hotels, schools and public facilities. The Greenwich Peninsula project is due to be completed in 2021 or 2022. 

“There are not too many opportunities to build a city in London,” said Sammy Lee, the vice-chairman of Knight Dragon.

Cheng is aiming to make Greenwich Peninsula a unique cultural destination for Londoners and visitors to the city, said Lee.

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Cheng, 71, is rumoured to have suffered a minor stroke on the eve of Lunar New Year in 2017. His listed flagship company, New World Development, last year confirmed without elaborating that he was ill.

“(Cheng) is now back to normal. He is in good shape,” said Lee, who said he had meetings with him recently. Lee said Knight Dragon was in no rush to offload the units as it viewed the redevelopment as a long-term project.

There are not too many opportunities to build a city in London
Sammy Lee, vice-chairman, Knight Dragon

The company also has no plans to offer buyers bulk discounts, on the sale of 20 to 30 units for instance.

Prices in London fell by 3.2 per cent between January and March compared with the previous quarter, their sharpest decline in nine years, according to regional data collated by IHS Markit and published by Halifax, which is part of the Lloyds Banking Group.

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London also recorded the sharpest fall since the start of 2011 on an annual basis, with capital values falling by 3.8 per cent in the first quarter from a year ago, Halifax said in the report last week. 

Knight Dragon’s Lee said there was always “a bit of uncertainty” in the market, but he was confident in the gateway city in the long run. 

JLL, the sole marketing agent for the Hong Kong launch, said it expected prices and rentals growth at Greenwich Peninsula to outperform the Central London average over the next five years.