Significant progress has been made in turning the ABP Royal Albert Dock development into London’s next business district underlining the commitment in the project and sending a loud message to strengthen confidence in the UK property market.
Major steps have been made in the last few days to push the project forward including the finalising of the appointment of CITIC Construction as the main contractor, CITIC Construction engaging Brookfield Multiplex as the Principal Subcontractor under a First Stage Appointment (FSA), and agreement with the Greater London Authority to start enabling works on site to prepare for the full construction programme to begin by the end of the year.
The announcements came when Wang Jiong, Vice Chairman and President of CITIC Limited, the Chinese conglomerate which is the parent company of CITIC Construction, flew in from China with a group of 9 senior executives from the company for a site visit and to see the beginning of the enabling works. The delegation were joined by ABP Chairman, Xu Weiping, and were greeted at Royal Albert Dock by Chief Executive of London Borough of Newham, Kim Bromley-Derry.
Around 20 people from CITIC Construction and Brookfield Multiplex, based at the historic Compressor House building, have already started work scoping the construction programme for the first phase.
The enabling works are being undertaken by contractor Careys at a cost of £2m and will take around 14 weeks to complete before the full construction gets underway. There will be up to 700 construction workers on-site at the peak of the main construction programme.
Xu Weiping, Chairman of ABP Global Group said: “We were impressed by the high standard of work, cost effective, cooperative approach and enthusiasm of Brookfield Multiplex and pleased with CITIC Construction’s recommendation on selecting Brookfield Multiplex as the Principal Subcontractor.”
“The bilateral exchanges between China and the UK have never been stronger and the progress of the project demonstrates ABP’s commitment of creating London’s next business district at Royal Albert Dock and creating better life and more jobs to the area by promoting the trade between UK and Asia.”
A spokesperson for Brookfield Multiplex said “This is an opportunity for two global construction businesses to work together and collectively deliver on the vision of ABP and its leadership. We look forward to bringing our technical expertise, market experience, and proven capability together in a partnership with CITIC Construction. This ground breaking delivery model will potentially set the high bar for future developments to follow”.
ABP announced that CITIC was backing the Royal Albert Dock project in October 2015 with an agreement signed by the CITIC Construction and ABP and witnessed by Chinese President Xi Jinping and former British PM David Cameron and since then discussions have been taking place for CITIC Construction to be officially appointed main contractor.
CITIC Construction and ABP have been working closely to complete the competitive tendering process that saw Brookfield Multiplex engaged. The Greater London Authority were fully consulted on the procurement.
James Murray, Deputy Mayor for Housing and Residential Development, said: “This is an important step towards creating the new Royal Albert Dock as a centre for businesses, shops and housing over the coming years. Despite the recent decision to leave the European Union, this reminds us that London is open and is the best place in the world to do business. This exciting development will act as a beacon for investment in the capital and the UK economy.”
Sir Robin Wales, Mayor of Newham, said: “It is great that we can be certain of ABP’s commitment to this development which will provide a vital boost to both Newham and the UK’s economy. Within just a few years we will all be reaping the benefits of this new business district which will bring life and energy back to the historic Royal Docks, and put them at the heart of the country’s economy once again.”
NOTES TO EDITORS:
ABP Royal Albert Dock
It was announced by the Mayor of London on 29 May 2013 that ABP (London) would lead the development of the 35-acre Royal Albert Dock site, as part of a deal, with UK partner Stanhope acting as development manager. ABP were chosen following a procurement process to identify a developer to develop out the site for employment focused uses.
It will cost £1.7bn to deliver and create 30,000 new jobs and bring £6bn to the local economy. The estimated gross development value of the development is over £3 billion.
The Hybrid planning application for up to 4.7m sq ft of floor-space with part submitted in outline and part submitted in detail received a resolution to grant consent at Newham Council’s Strategic Development Committee meeting on 23 July 2014, and was approved following no objections from the GLA or the Secretary of State in June 2015.
At the official sales launch of the project held in June 2015, more than 10 enterprises from the UK and Asia signed confirmation agreements and each paid a £50k reservation fee to secure office space in the first phase of the 4.7 million sq ft development in advance of full construction work starting on site later this year.
It is planned to start full construction on site at Royal Albert Dock in late 2016 and the first phase of 1.2m sq ft will be finished by 2018. The entire scheme will now be completed within 8 - 10 years.
Royal Albert Dock is part of the Royal Docks - London’s only one Enterprise Zone which lies within the stretch of land running from Stratford down the River Lea to the Thames, an ‘arc of opportunity’ with £26 billion of development potential. It is home to ExCeL, the international exhibition and convention centre and London City Airport. The Mayors of London and the London Borough of Newham have set out a joint vision to develop the Royal Docks.
CITIC Construction Co., Ltd is a subsidiary of the CITIC Limited. CITIC Limited is China’s largest conglomerate operating domestically and overseas. With businesses in financial services, resources and energy, manufacturing, engineering contracting and real estate as well as others. CITIC’s rich history, diverse platform and strong corporate culture across all businesses, ensure that CITIC Limited is unrivalled in capturing opportunities arising from China’s continued growth. CITIC Limited is listed on the Stock Exchange of Hong Kong (SEHK:267) where it is a constituent of the Hang Seng Index. CITIC Group, a Chinese state owned enterprise, owns 58% of CITIC Limited. For more information about CITIC Limited, please visit the company website at www.citic.com.
Based on CITIC Limited’s full-service strength and international reputation, CITIC Construction is dedicated to providing full life-circle engineering package solutions, encompassing feasibility study, project approval and initiation and financing, construction, operation. CITIC Construction’s operation strategy is to win over engineering contracts with front-end services and financing solutions for clients, and prompt industrial development through engineering contracting work. CITIC Construction provides clients and local governments with a full package of comprehensive services throughout the whole project lifecycle. In 2015, CITIC Construction ranked 52th among the ENR Top 250 international contractors.
Brookfield Multiplex are a leading global contractor with established operations in Europe, Canada, the Middle East, Australia and India.
Established in 1962, they have constructed more than 935 projects across the globe with a combined value of US$61 billion and in doing so have earned more than 630 industry awards.
Brookfield Multiplex was established in the United Kingdom in 1999, and has a strong reputation for the delivery of highly complex construction projects. They have built some of the tallest residential towers in London and the largest hospital complex in the UK. They harness the vast global experience gained over the past 50 years to ensure the very best solutions are found for clients in the delivery of its projects.
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ABP (London) Investment Ltd
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