Sheffield secures massive £1bn 60-year Chinese investment deal

The council has agreed a 60-year partnership with Sichuan Guodong Construction Group in the first deal of its kind with a UK city.

The first tranche of funding is expected to be worth £220m to fund four or five city centre projects over the next five years.

It is thought this will include retail, office and residential developments and plans to bring a five-star hotel to the city.

Sheffield City Council leaders said the deal would create “hundreds if not thousands of jobs in the city centre.”

It has not yet been decided what the money will be spent on. A decision making board with representatives from the council and the construction group will meet at least twice a year to decide on investments.

Council leader Julie Dore said: “This is the biggest Chinese investment deal to be made by a UK city outside of London. And perhaps more importantly it is first deal of its kind to be made by a UK city. This is a real partnership.

“The projects funded by this investment will be determined by Sheffield City Council, and the 60-year commitment secures a stream of investment into our city for the next generation, and means a whole range of projects become viable because of the long-term nature of the relationship. At a time of unprecedented uncertainty and turmoil on the national political scene, we have taken the bull by the horns and led by example here in Sheffield.”

The authority’s deputy leader Coun Leigh Bramall said the deal between Sheffield City Council and Sichuan Guodong Construction Group has been negotiated over 18 months. It was announced after council leaders returned from Chengdu, which is Sheffield’s sister city and is the fifth largest in China.

He said: “This is not a charity deal. Sichuan Guodong Construction Group have decided to invest here because they recognise the potential of Sheffield’s economy to grow. The first wave of projects we expect to happen in the next three years. They will be developments within the inner-ring road.” He said the council would be involved in deciding which schemes get funding and could supply land or carry out preparation work if this helped to “unlock” investment

Coun Brammall said: “We are clear that this will create hundreds, if not thousands, of additional jobs for the people of Sheffield.” The investment comes from China, but the workforce on these projects will be British.”

Mr Wang Chunming, chairman of the board and president of Sichuan Guodong Construction Group, has visited Sheffield a number of times.

He has previously said of his association with the city: “Sheffield really does stand out amongst all UK cities as an outstanding business investment. This agreement illustrates our confidence in Sheffield as a city going from strength to strength, with real growth potential. We are looking forward to being a part of this over the coming decades.”

Sheffield City Council has recently signed co-operation trade agreements with Daqing, the leading centre for the oil and gas industry in China and location of a major World Snooker International Championship, and the city of Nanchang, to boost trade between local companies and China.