GROWING U.K. PRESENCE
ECO World International Bhd and United Kingdom’s Be Living Holdings Ltd are teaming up to develop 12 sites in Greater London and southeast England. The projects will have a total gross development value of around £2.6 billion.
ECO World International Bhd (EWI) and Be Living Holdings Ltd will jointly develop 12 sites in Greater London and southeast of England with an estimated gross development value (GDV) of £2.6 billion (RM14.20 billion).
The two entities sealed the deal, here, yesterday, which entails the acquisition of a development management company (DMco) in the United Kingdom to build affordable housing there.
Be Living is the property development arm of Willmott Dixon Holdings Ltd.
This development will be carried out over two stages. The six sites in Stage 1 are Woking, Kensal Rise & Maida Hill, Millbrook Park, Barking Abbey Retail Park, Barking Tesco and Nantly House of Lampton.
The rest, in Stage 2, are Kew Bridge, Aberfeldy Village, Bromley, Tulse Hill, Ealing and Tesco Osterley.
EWI’s purchase of a 70 per cent stake in Stage 1 sites and the DMco for £64.9 million is funded by proceeds from its initial public offering (IPO) in April, when it raised RM2.5 billion.
Currently, its gearing is at a healthy level of 0.05 times.
EWI president and chief executive officer (CEO) Datuk Teow Leong Seng, Willmott Dixon group chief executive Rick Willmott and EWI international business (UK) CEO Cheong Heng Leong inked the sale and purchase agreement yesterday.
Also present were Second Finance Minister Datuk Seri Johari Abdul Ghani, British High Commissioner to Malaysia Victoria Treadell, EWI executive chairman Tan Sri Azlan Mohd Zainol, EWI executive vice-chairman Tan Sri Liew Kee Sin and Willmott Dixon group chairman Colin Enticknap.
Teow said the planned acquisition would boost the group’s presence in the UK by fourfold.
“We will have access to a sizeable landbank of 6,700 residential units with a total GDV of at least £2.6 billion,” he said.
“The price point for these affordable housing units would range from £500 to £800 per sq ft. This will see larger pool of British and foreign investors in the affordable segment in Greater London,” he added.
Teow said the British government’s recent stamp duty waiver for properties priced to a maximum of £500,000 in London and the “Help-to-Buy” scheme would boost demand for houses at its development.
The 12 sites are within the London commuter belt, where house buyers would find it convenient to walk 20 minutes to the London Underground and rail stations offering up to 40-minute rides to Central London and easy access to international airports in the UK.