KUALA LUMPUR, Aug 29 — Eco World International Bhd’s 70 per cent-owned UK joint-venture EcoWorld London has signed heads of terms with a North American Pension Fund on a build-to-rend development valued at about £400 million (RM2.11 billion).
In a statement, it said EcoWorld London has agreed to terms with Invesco Real Estate and its investors to forward fund the development of more than 1,000 new built-to-rent homes on two sites in Kew and Barking in London.
“EcoWorld International sees great potential in the UK Build to Rent market and this deal validates our strategic move to make the fast emerging Build to Rent business one of the key growth drivers for EcoWorld London,” EcoWorld International Executive Vice Chairman Tan Sri Liew Kee Sin said.
The Kew site is located next to the new Brentford Football Club’s 17,250-seat stadium currently under construction and just minutes away from Kew Gardens, a Unesco World Heritage Site.
Meanwhile, the Barking site is located next to the historically important Barking Abbey, which housed William the Conqueror in 1066 whilst he constructed the Tower of London.
Both sites are well connected to Central London by train and underground networks and offer highly desirable yet affordable rental accommodation for tenants.
According to the statement, EcoWorld London will complete the construction of the development to the high specifications agreed with the investors and will then undertake the long-term management of the assets on their behalf.
It said planning permissions have been secured for both sites and development work has already commenced with construction due to complete in stages from 2020 onwards. As both parties head into a period of exclusivity, the detailed contractual arrangements are targeted to be concluded by the end of October 2018.
The deal underlines EcoWorld London’s commitment and ambitions for the built-to-rent side of its business as the company continues to seek opportunities for similar deals as part of its growth strategy. — Bernama
