Vauxhall Square in London has been sold by a Chinese developer for £96m, which is a reported discounted price of 42 per cent.
A subsidiary of Hong Kong-based company the Far East Consortium International (FEC) swooped in for the 14m square-foot site, buying it off rival firm, Guangzhou-based R&F Properties, on the cheap.
It was reported R&F made the sale at a loss of almost £70m, in a bid to clear its debts.
This comes after Beijing launched a crackdown on debt in the Chinese real estate market, leading to a collapse in construction and housing, and a slowing-down of growth.
The square, which sits on the southern bank of the river Thames, joins FEC’s UK portfolio which includes Consort Plane in Canary Wharf and Manchester’s Red Bank neighbourhood.
There are plans to use the site for two 50-storey residential towers, offices, a hotel, student accommodation and retail.
“These larger sites are typically hard to come by, especially in central London”, said John Connolly, Head of UK Development at FEC
“Of course, we were delighted when the opportunity arose to acquire Vauxhall Square.”