EcoWorld London signs agreement with Invesco

KUALA LUMPUR: Eco World International Bhd (EWI) has signed heads of terms with a North American pension fund on a build-to-rent development valued at about £400 million (RM2.11 billion) on two sites in the Kew and Barking in the United Kingdom.

EWI said in a statement yesterday its 70 per cent-owned joint venture, EcoWorld London, signed the agreement with Invesco Real Estate.

EWI said this is one of the biggest single commitments into the emerging build-to-rent sector in the UK.

It said the landmark deal was further testament to the confidence of international investors in the Eco World brand and recognition of the company’s strong track record in delivering quality homes, superb lifestyle services for residents and flourishing new communities.

The Kew site is next to the Brentford Football Club stadium that is under construction and just minutes away from Kew Gardens.

The Barking site is next to historical Barking Abbey.

EWI executive vice-chairman Tan Sri Liew Kee Sin said the group expects great potential in the UK build-to-rent market and this deal validates its move to make the fast-emerging build-torent business one of the key growth drivers for EcoWorld London.

EWI said planning permission has been secured for both sites and development work has commenced, with construction due to complete in stages from 2020.

The detailed contractual arrangements are targeted to be concluded by the end of October.

“The deal underlines EcoWorld London’s commitment and ambitions for the build-to-rent side of its business as the company will continue to seek opportunities for similar build-to-rent agreements as part of its growth strategy,” it said.

According to a research by CBRE Group Inc, there is huge growth potential for the build-torent sector and it expects the annual investment volume to quadruple within five years to £10 billion.