Chinese developer Greenland is selling its first UK development, the £600m Ram Quarter on the former Young’s Brewery site in Wandsworth, SW18.
The 3.42-acre site has consent for 375 homes in phases two and three. It follows the first phase of development comprising 338 flats, a microbrewery and a heritage centre.
The developer has instructed CBRE and Knight Frank to sell the freehold to the site, with an informal guide price of £40m.
Ram Quarter is adjacent to the River Wandle on Wandsworth High Street. Greenland recently completed phase one, with an operational energy centre set to power phases two and three.
According to Radius Data Exchange, it has sold almost all the flats in phase one at prices ranging from £458,000 to £1.55m and an average sales value of £850 per sq ft, against a maximum of £1,350 per sq ft.
Phase two comprises 259 flats, including a 35-storey tower and 66 affordable homes in a stand-alone block. Phase three includes 50 flats. Agents are marketing the scheme as having redevelopment potential for alternative uses such as build-to-rent or student accommodation, subject to planning consent.
Greenland’s decision to exit the site has surprised many in the market, adding to uncertainty over its London strategy.
The developer entered the market in 2014 with the £136m acquisition of the 7.5-acre Ram Quarter site from Delancey. Just months later it expanded to acquire the Hertsmere development in Canary Wharf for a 67-storey residential tower called the Spire, which would be the tallest in Europe.
At the time, Greenland UK’s general manager Wenhao Qian said the group was actively seeking opportunities in the UK. However, he warned of significant differences between the UK and China in terms of local economic development, urbanisation, consumer culture, consumer habits and laws and regulations.
Following site preparations at Spire London, Greenland halted construction in 2018. The stop on site came amid a cooling in the luxury residential market and reports that the developer would seek to revise the plans.
The special purpose vehicle Greenland (Hertsmere) London later secured a loan from Haitong Bank for the site in 2019. However, it has yet to pursue construction, submit a new planning application or market a sale.
Greenland was one of the first major Chinese developers to enter London. Following a rush of acquisitions around the capital following the 2016 Brexit referendum, many developers have since opted out of the UK, citing growing regulatory pressure preventing overseas investment.
Since 2018, Dalian Wanda, Fosun International and Anbang Insurance Group have opted to sell their sites. However, Hong Kong-listed R&F and CC Land have continued to snap up sites and build them out.
Challenges in London’s luxury for-sale market and rising construction costs have seen a number of for-sale schemes turn to BTR or student housing. However, as the UK comes out of lockdown the residential market has been positive and urban brownfield land prices have started to climb again.
A spokesman for Greenland UK said: “Ram Quarter is a high-quality development where the completed phase one is demonstrating its attractiveness and appeal. With the residential and commercial elements nearly fully let or sold, we are now exploring the market to consider the potential future development of Phases two and three.”
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