Oxley Holdings Ltd., a Singapore-based property developer, plans to build 3,400 homes in London after buying the city’s largest mixed-use real estate site since a group of Malaysian investors agreed to purchase Battersea Power Station in June 2012.
The developer bought the 40-acre (16-hectare) Royal Wharf site at the Royal Docks on the banks of the River Thames from Ballymore Properties Holdings Ltd. and will build homes, offices and shops, broker Knight Frank LLP said in an e-mailed statement today. Oxley agreed to pay 200 million pounds ($320 million) for the site, the developer said in a separate statement.
“Royal Wharf is an outstanding opportunity and offers a blank canvas to create something very special for London,” Oxley Chairman and Chief Executive Officer Ching Chiat Kwong said in the statement. “Oxley will create a vibrant district and the opportunity cannot be missed by Londoners.”
The deal adds to an influx of Asian investment in London. Malaysian companies SP Setia Bhd and Sime Darby Bhd and the Employees Provident Fund, bought the landmark Battersea site, a derelict power plant that’s also Europe’s largest brick building, for 400 million pounds.
More than 250 million pounds was spent on land for homes in London’s Docklands area this year and an additional 2 billion pounds must be invested to fund the projects, according to Jones Lang LaSalle Inc.
Knight Frank, based in London, was hired to sell the site along with broker Alan Selby and Partners LLP in April.
“My team and I met with Oxley Holdings on our trade mission to China last month and I am thrilled at this demonstration of their confidence in our great city,” London Mayor Boris Johnson said in a statement. “It is further evidence of the colossal appetite of developers from the far East and elsewhere to invest in London.”