Hong Kong’s Nan Fung Buys Majority Stake in UK’s Endurance Land

Hong Kong’s Nan Fung has bought a majority stake in Endurance Land to up its exposure in the United Kingdom, according to a statement released on the Central London property developer’s official website.

The privately held real estate development and investment firm “will commit capital and resources to support new business ventures by Endurance Land,” read the statement.

Endurance indicated in the announcement that the 12-year-old company, which specialises in “active management” of buildings that require refurbishment or development, will continue to team with other investors for both development and asset management projects, following the tie-up with Nan Fung, while also leveraging support from its new Hong Kong bosses.

Nan Fung Boosts Flow of Asian Capital into UK Real Estate

“Nan Fung Group shares our professional and entrepreneurial outlook with a strong investment track record overseas, especially in London, and is a proven developer in Asia with a strong history and proud culture,” said Jonathan Fletcher, CEO of Endurance Land in a statement.

The announcement came four months after the privately held Hong Kong real estate developer purchased a £75 million City of London building amid a growing flow of Asian money into UK real estate investments.

Although the details of the acquisition have not been revealed, press reports in the UK speculated that the Hong Kong firm would inject £100 million to “support new business ventures” by Endurance Land, which has developed a range of landmark central London assets including the recently sold  £95.4 million Cursitor Building in Chancery Lane and £100 million Athene Place in Shoe Lane.

Endurance states that its areas of expertise include Central London as well as improving suburban areas that it believes have good prospects for growth.

Endurance to Manage Nan Fung London Assets

Under the new structure, Nan Fung’s existing UK assets, including the 250,000 square foot Regent Quarter in North London and the Cheapside House office building in the city of London, will be managed by Endurance Land and their UK team will join Endurance Land with immediate effect. Fletcher, who founded the development and asset management company in 2006, will continue to lead the company as CEO.

In June this year, the firm, chaired by Vivien Chen, bought 90 Queen Street for £75 million, a City of London building with significant marriage value potential with the family’s neighboring asset, 80 Cheapside. The off-market deal was seen as a strategic play to potentially combine the two assets and redevelop them once the leases run down.

Despite Brexit fears, London remains a top destination for real estate buyers globally, with Asian investors in particular snapping up assets, a new Knight Frank research found.

Overall some £5.6 billion was invested in London property by foreign buyers in the first half of 2018, according to the agency’s findings. Asian investors dominated and accounted for £4.4 billion or 65 percent of investment. Out of this 65 percent slice, Hong Kong, mainland China and Taiwan led the way with £2.6 billion or 38 percent of total cross-border commitments into the city.