The City of London has signed a deal for a £1 billion dock project.

 

Boris Johnson, the mayor of London, today approved a £1 billion contract with a Chinese developer to build the city's next financial zone. qatar sale

The mayor's office said today that Advanced Business Park, in its first project outside of China, will build a 3.5 million-square-foot office complex at the Royal Docks site in east London.

"East London's rivers have been the pulsing arteries of UK trade and commerce for generations. This agreement represents the return of that glorious era "In a statement, Mr. Johnson remarked.

The project at Royal Albert Dock has yet to find tenants, but ABP is targeting Chinese banks wanting to grow into London's international market. ABP would sell leases of up to 175 years on nearly half of the project, rather than renting out space, in a new approach for London's business market.

"There will be U.K. and European enterprises drawn by the notion as well, either to supply services to Asian corporations or to expand their own reach into Asia," ABP chairman Mr. Xu Weiping told the Financial Times.

The first phase of the project, designed by Terry Farrell & Partners, is expected to be completed in 2017, with 600,000 square feet of office and residential space.

The project, which is near London City Airport, is expected to operate as a 24-hour mini-city to meet the demands of Asian enterprises, according to ABP.

The ABP development is expected to generate £23 million in yearly revenue, according to the Greater London Authority. The construction will be overseen by Stanhope, a British developer.

To ensure the project's completion, GLA will first sell a leasehold to ABP, which will then be converted to a freehold after the project is finished.