One of China's major construction firms has agreed to fund an £800 million ($1.3 billion) development surrounding Manchester Airport, the first hint that Beijing is following through on a vow to significantly increase its infrastructure investment in the United Kingdom. Suppliers
The Greater Manchester Pension Fund (GMPF), Beijing Construction Engineering Group (BCEG), and Carillion PLC will collaborate to develop Manchester Airport City, which has been dubbed the UK's largest regeneration project since the Olympics. Offices, hotels, innovative manufacturing, logistics, and warehousing are all planned for a total of 5 million square feet.
As part of Chancellor George Osborne's trade mission to China, the agreement was announced.
Mr. Osborne told reporters, "I am adamant that Britain does not repeat the mistakes of the past, which saw investment and growth focused only in the City of London, as essential as it is, but instead ensures that investment from China flows to all parts of the country."
China and the United Kingdom agreed last year to increase bilateral trade from $8 billion to $100 billion by 2015. However, the relationship deteriorated, especially after Prime Minister David Cameron met with the Dalai Lama, which sparked Beijing's protests.
In a statement, Xing Yan, managing director of BCEG International Co. Ltd., stated, "We regard our involvement in Airport City as an extension of the memorandum of understanding between China and the United Kingdom, where we have been wanting to further explore cooperative infrastructure potential for some time."
According to the corporation, management of the airport expansion is "actively looking" to attract direct flights to China.
Mr. Osborne also revealed efforts to streamline the visa process for Chinese tourists to the UK during his visit.
Kerzner is planning a resort in China called Atlantis.
A comparable resort is being planned for China by the creator of the Atlantis resorts in the Bahamas and Dubai.
The Atlantis resort in Sanya, Hainan, on the South China Sea, will span 62 acres and offer many of the same amenities as the other Atlantis resorts, such as a "Aquaventure Waterpark and exotic marine displays."
Fosun International, a Shanghai-based corporation, would invest 10 billion yuan ($1.6 billion) as part of a bigger investment in resorts and tourism enterprises around China.
"The projects will be driven by strong Chinese demand while being developed with the entrance of globally recognized brands," Fosun CEO Guo Guangchang said at a press conference yesterday. "We're putting money into initiatives that will expand in tandem with China's GDP."
Fosun spearheaded a $729 million attempt to buy French resort firm Club Mediterranee earlier this year, but the deal is still pending shareholder approval.
Sun City and the Atlantis complexes were developed by Kerzner International, which is led by South African entrepreneur Sol Kerzner. During the downturn, the company was heavily impacted, and as part of a financial restructuring, it sold holdings in both the Bahamas and Dubai resorts.
Kerzner will now manage the China property, while Fosun will bankroll the construction.
Kerzner's international chief executive, Alan Leibman, told the Wall Street Journal, "We are focusing on managing hotels."
There will be 1,300 hotel rooms, 18 bars and restaurants, and interactive dolphin performances at the Sanya Atlantis. The groundbreaking will take place this year.
Mr. Leibman said in a statement, "China is the ideal place for our next Atlantis tourist resort." "This resort will swiftly establish itself as a new landmark in China, introducing the engaging, engaging entertainment experiences that are at the heart of the Atlantis ideology."