China Vanke Co. Ltd., a real-estate company, has purchased a 20-percent stake in a London property development project, marking their first venture in the U.K. commercial realty sector.
According to U.K.-based weekly commercial property magazine Estates Gazette, Vanke now has a 20-percent stake in The Stage development project in Shoreditch, an area that has become popular among London-based Internet and technology companies. The project is valued at around 750 million pounds ($1.16 billion).
Vanke spent more than 30 million pounds in order to acquire the stake from the former equity holders, including Cain Hoy Enterprises, McCourt Global, Galliard Homes and Investec Structured Property Finance.
Located in North London, The Stage project is a 40-story apartment building with 385 units.
Back in the 16th century, the project's location was home to the Curtain Theatre, which was the stage where William Shakespeare's "Romeo and Juliet" and "Henry V" were first performed. The project is set to include the creation of a tourist attraction celebrating William Shakespeare.
Vanke is among several Chinese real-estate developers that are using overseas purchases to diversify their assets. They have been assessing potential investments in cities like London and New York.
According to James Macdonald, head of Savills Research China, there has been "an escalation in the deal volumes and the total considerations of Chinese companies in overseas markets in recent years."
Chinese investors have become more experienced and gained a deeper understanding of overseas markets, and confirmed deals this year have already reached $15.2 billion, surpassing last year's total.
In Feb. 2013, Vanke announced it was teaming up with global property firm Tishman Speyer Properties for a luxury residential project in San Francisco.
In 2014, Vanke entered a partnership with U.S.-based developers RFR Holdings LLC and Hines to develop an upscale residential building in New York, according to a report by Forbes magazine.