Peterson, a private family company based in Hong Kong, has taken a stake in Hadley Property Group, through a joint venture with LJ Group.
Founded in 2000, Hadley has since grown to a team of 25 and currently has 1,000 plus residential units in its development pipeline, which it lacks the funding to build out rapidly. This move will allow it to spend up to £100 million building London residential property.
Andy Portlock, chief financial officer at Hadley, said: “The new partnership between Hadley, LJ and the Peterson Group provides us with the immediate opportunity to significantly expand our development activity in the residential sector.”
"Our continued presence in the residential market over the last 10 years derives us a rich array of key relationships which enable us to unlock development sites. Our strong links to debt provision will allow us to leverage the significant equity funding to be provided by Peterson and LJ”.
“As well as three development sites that we currently have under contract we are looking to acquire an additional 8-10 sites in 2014, both through market acquisition and by building our strategic regeneration partnership with Mace Group through the GLA and Westminster panels”.
The investment will help accelerate growth for Hadley as they enter the second phase of their biggest development to date, Greenwich Square. Launched in April 2013 with Mace Group, Greenwich Square comprises 645 new homes and over 35,500sqft of ground floor retail, restaurant and D1 commercial space.
Peterson Group is a global developer and investor in residential, hotel and commercial property in Asia and Canada. In 2013, the Group made bought the Ampersand building on Oxford Street, which is currently undergoing refurbishment and is to be completed by the end of 2014. That was the start of Peterson’s UK strategy and the Group has since completed 4 projects here.
Tony Yeung, Managing Director of the Peterson Group added: “We were attracted to the professionalism and experience of the management of Hadley Property Group. We look forward to expanding our residential exposure in London with partners that share similar aspirations to develop good quality product that fits the local and international market. The UK is an important market in the Group’s long term growth strategy and we intend to work closely with the LJ and Hadley teams to further develop the business.”
Andrew Williams, Chief Executive Officer of the LJ Group, said: “The LJ Group is looking forward to the opportunities presented by our partnership with Peterson and, in particular, to the growth potential afforded to Hadley by a new and significant source of committed capital and by access to Peterson’s extensive Asian network. We are very much looking forward to working with Peterson and to expanding the Hadley business.”