Xinyuan Real Estate Co., Ltd ("Xinyuan" or the "Company") (NYSE: XIN), an NYSE-listed real estate developer and property manager operating primarily in China and also in other countries, today announced that it has acquired, from ED Jersey Limited, a 100% owned subsidiary of ED Group Holding Limited ("ED Group"), a 50% equity stake in Madison Developments Limited ("MDL"), the developer of The Madison, London E14, via Xinyuan's 100% subsidiary Xinyuan International (HK) Property Investment Co Ltd for a total consideration of GBP £29.11 million.
The Madison Project site extends to 0.38 hectares (approximately 0.94 acres) and is located adjacent to Canary Wharf, one of Europe's largest commercial centres. The planning permission was granted in March 2015 for the site to develop a ground plus 53 story building, comprised of 423 residential apartments, including 319 private apartments and 104 affordable apartments, approximately 425 sq. meters of office space and extensive, new landscaped public gardens. Construction is currently underway and completion is expected in 2020. To date, approximately 40% of the private apartments have been pre-sold and 100% of the affordable apartments have been pre-sold. The Madison project is being managed by LBS Properties.
Mr. Yong Zhang, Xinyuan's Chairman, commented, "We are pleased to make this equity investment in Madison Developments Limited. This is our first step in the UK real estate market and an important milestone for Xinyuan's international expansion strategy. While China remains our core market, we would like to take advantage of our experience in overseas investment and join hands with competitive local partners, and are confident that our investment in Madison Developments will generate favourable returns for our shareholders."
Mr Gordon Crawford, Chairman of ED Group, commented, "We are pleased to welcome Xinyuan Real Estate as our partner in this exciting development project. The Madison is set to be a landmark building in the Canary Wharf market, a location we believe will benefit over the coming years from substantial investment, including the arrival of Crossrail later this year. We look forward to working with Xinyuan on their debut investment in the UK to establish a successful, long term partnership."