Greenland sells first UK site to Berkeley Homes

Chinese developer Greenland has sold the unbuilt development site at its first UK scheme, the £600m Ram Brewery, to Berkeley Homes. Greenland brought the Ram Quarter scheme site to market last year, seeking offers of around £40m. At the end of the year it secured a sale to Berkeley’s St George subsidiary. The FTSE 100 housebuilder will develop 375 homes at the remaining 3.4 acres in phases two and three, following Greenland’s 338 homes and microbrewery in phase one. The Chinese developer bought the former Young’s Brewery site in Wandsworth, SW18, for £136m from Delancey in 2014. 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. After pursuing site preparations for its second scheme, the 67-storey Spire London on West India Quay, Docklands, construction and further acquisitions halted. Since then, China’s “three red lines” restrictions to control high levels of debt and leverage have seen a number of headaches for developers already struggling with a downbeat sales market. At the end of last year, Greenland lodged a request with Tower Hamlets Council to reduce the number of affordable homes at Spire London. The 2016 consent for the 861-home scheme includes a 30% affordable housing offer – with 96 homes on site, 60 at another site and a £19.25m financial contribution. Citing a stagnation in international sales and rise in build costs, Greenland sought to remove the on-site affordable requirement to make the scheme viable. CBRE and Knight Frank advised Greenland on the Ram Quarter sale. To send feedback, e-mail emma.rosser@eg.co.uk or tweet @EmmaARosser or @EGPropertyNews See which agents are doing the most deals in the London markets with our On-Demand Rankings >> Photos © Greenland UK