China Evergrande Group, the country's largest property developer, has started a private UK investment firm with German entrepreneur David Stern and former Deutsche Bank chief financial officer Stefan Krause.
The London-based firm, named Celestial, will seek investments in different industries mainly in the UK and Europe and is partnering with Evergrande in a bid for UK homebuilder Cala Group. China Evergrande, the parent of Evergrande Real Estate Group (3333), has been in talks to buy Cala Group for several months.The collapse in the value of the pound has helped lure some international buyers back to UK property after Britain voted to leave the European Union in June. Overseas capital accounted for a record 84 percent of central London office investment in the third quarter.
Evergrande has been on a debt- funded buying spree in the past year, building up its land bank in China and buying shares in other developers, including China Vanke.in which it reportedly owns a 7 percent of Vanke.