ABP park aims to return London dock area to former glories

$1.5b project to attract regional HQs and create 30,000 jobs, says property company's London CEO

Beijing property developer ABP Group has unveiled its plans for the Asian Business Park in East London.

The $1.51 billion project aims to transform 14 hectares of the historic Royal Albert Dock, close to London City Airport, into an office complex over the next decade.

Above: An artist's impression shows the entrance to ABP Royal Albert Dock London from Beckton Park. Below: ABP's Beijing project. Photos provided to China Daily

The first stage started this year, with CITIC Construction of China as the main contractor and support coming from Britain's Multiplex Construction.

"We came to the UK because our clients are expanding into the UK, and we want to provide the best service for them," says Nancy Xu, CEO of ABP London and vice-chairwoman of ABP Group.

Founded in 2003, private-owned ABP Group has a record of investing in large areas in need of regeneration. It has projects in Beijing as well as in Haining and Qingdao in eastern China and Shenyang in the northeast.

The company initiated a concept in the property development market to attract the regional headquarters of client companies, so that decision-making teams can be together in one building while commercial cooperation can easily take place between different partners.

In Britain, ABP hopes to house the UK and European headquarters of Chinese and Asian companies as well as Western businesses that hope to do business in China. So far, 13 companies have reserved units in the Asian Business Park.

London is the first international city where ABP has established a presence. Xu says the city's stable political and legal frameworks make it a good investment location.

The British property development market's profit levels are about 20 percent, and the business park's profit level is aimed slightly above that, she says.

Xu says the company's key advantages are its access to finance, extensive experience in operating large-scale projects and its many Chinese clients. Also a crucial factor is ABP Group's partnership with CITIC Construction, a subsidiary of CITIC Group, which also has provided partial funding for the London business park.

The Greater London Authority awarded the contract to ABP in 2013 after a two-year assessment of 11 bids for the project.

In addition to providing office space, the company has also started to help Chinese companies find a home in London and find the best local partners.

The ABP International Alliance, which has 500 member companies, hosted a China-UK summit for entrepreneurs in 2013 when Boris Johnson, then London mayor, visited China. The property developer also regularly hosts seminars and salons on technology, financial services and research and development.

"We're used to organizing these events for our clients in our commercial property blocks in China. They're not all serious; some events are great fun, such as basketball, karaoke and singles' parties," Xu says.

"The bottom line is we want our clients to have happy employees, who can then perform better at work."

The start of construction on the park comes at a time of uncertainty in Britain's political landscape after the Brexit vote. However, Xu says her team remains confident about the UK market because Chinese companies are still keen to invest, with a few large deals announced in recent months.

Meanwhile, the weakened pound is also creating benefits for ABP and its clients. Xu says once the London park is finished, similar projects could be launched in other cities, such as Birmingham, Manchester and Cambridge.

ABP also regularly takes part in international events like MIPIM, the world's largest property fair, to seek opportunities to further its global expansion plan.

Xu says her job at the ABP London office has taught her many lessons, such as how "rigorous and comprehensive" the planning process is in the UK property market.

"This is encouraging for our project, as it allows us to consider many factors in detail before we start construction," she adds.

Planning for the London business park has involved investing in infrastructure around the development, including the Docklands Light Railway. Such investment is common as a part of a large-scale developer's corporate social responsibility.

Other CSR activities involve investment in a government training program to better equip the local labor force.

Royal Albert Dock, opened in 1880, was the first to use electricity and was equipped with what at the time were the latest cranes and steel winches, which unloaded tobacco from the United States as well as fruit and meat from mainland Europe.

As the shipping industry declined in the 1950s, the dock became run down, and the last ship set out from there in 1980. The area's decline is something ABP hopes to help reverse.

When completed, the Asian Business Park is expected to house several hundred companies and create 30,000 jobs.

ABP has appointed Savills to run its global sales, as it has networks in Asia and Europe.

The business park is expected to benefit from its proximity to London City Airport, making it convenient for business travel, a bonus for Asian businesses with European headquarters in London.

Work on the first phase of construction, which covers 11 hectares, is scheduled for completion in 2018. The entire project is set to finish in 2026.

Xu says she's positive about the future of ABP, adding that she has created a good corporate culture in the London office, where each team comprises an experienced Western executive and Chinese employees.

"Cultural differences are not a challenge, but an opportunity, as our Western and Chinese employees can utilize their unique advantages and contribute their strengths," she says.

For example, she explains, this year she was pleasantly surprised by Western colleagues at Multiplex Construction being willing to take part in China's traditional Dragon Boat Festival.

"They're curious and excited about our culture and festivals when we explained the meaning and significance," she adds. "I'm pleased about the cultural understanding and integration in our team, and I believe this is symbolic of the wider dynamics of Chinese companies expanding abroad."

cecily.liu@mail.chinadailyuk.com

(China Daily Africa Weekly 09/23/2016 page31)