Greenland buys Europe’s tallest residential tower

Chinese State-backed developer Greenland Group said Wednesday that it has snapped up the stalled site of Europe's tallest residential tower, in London's Canary Wharf financial district, after an earlier deal with an Irish property investor fell through.

The site on Canary Wharf's northwest corner was sold by Commercial Estates Group (CEG), which had permission to build a 242-meter tall building containing 700 homes, offices and shops.

Greenland said on Wednesday it had exchanged contracts with CEG to buy the Hertsmere site, which it expects to be worth 600 million pounds ($1 billion) when complete.

The deal marks Greenland's second London acquisition in 2014, after it bought the site of the capital's oldest brewery in January.

Greenland's move reflects a growing trend among Chinese developers to seek deals abroad as the Chinese government steps up measures to cool the country's real estate sector, squeezing sale prices and profits.