IJM Land makes London debut
Royal Mint Gardens launched at the same time in KL and London
THE mere mention of London conjures up a multitude of images in people. It is the seat of power of the United Kingdom, a robust financial and trade centre, a trendy fashion hub and a shoppers’ haven. Plus, it’s a renowned education city.
Tourists flock to the capital to soak up its rich heritage of history, culture and arts, and a plethora of modern day sights and sounds.
It comes as no surprise that London continues to charm people from all walks of life globally and is living up to its image as an important multi-faceted global city.
London’s real estate sector has proven to be resilient amid the recent global financial meltdown, which explains the strong interest from property investors and developers, including Malaysian institutional and private players.
Making its debut in London’s real estate scene will be IJM Land Bhd. It is planning a two-phase mixed development project on 2.7 acres in central London. The project is a 51:49 joint venture between IJM Land and UK investors.
Physical work on phase one of the project is expected to commence early next year with completion targeted in the fourth quarter of 2017.
IJM Land chief executive officer and managing director Datuk Soam Heng Choon says Royal Mint Gardens on Royal Mint Street, with an estimated gross development value (GDV) of £200mil (RM1.04bil), will be the first phase of the project. The project has been simultaneously launched in Kuala Lumpur and London yesterday and up to tomorrow.
It will comprise 254 apartments with a built-up of between 387 sq ft and 1,431 sq ft. Indicative selling prices range from £465,000 to £1.85mil.
The studios, one-bedroom, two-bedroom and three-bedroom units will be housed in three apartment blocks of 13-storeys, 14-storeys and 15-storeys.
Current planning permission for phase two of the project is for a 236room five-star hotel, 33 hotel serviced apartments, and 79 residential apartments, for an estimated GDV of £100mil.
Soam says it is not easy to find land that is suitable for greenfield development in London, and IJM Land is confident Royal Mint Gardens will set a new benchmark in luxurious living in this fascinating city.
He points out that despite its competitive average price of £1,100 per sq ft, the project will stand out in terms of its location, design layout and facilities.
Residents can look forward to 24-hour concierge, a fully equipped gymnasium, jacuzzi, yoga/dance studio, cinema room, lounge and reading area, leisure and wellness amenities, landscaped gardens, courtyards and community spaces.
They will also get to enjoy the scenic London skyline and oversee the bustling financial district from their private balconies and terraces. Those on the higher level apartments can bask in the spectacular view of the Tower of London and Tower Bridge.
Soam says the project’s intrinsic value is its address; located a few minutes walk to the Tower Bridge and the Tower of London, and adjacent to one of the world’s leading financial district that is the City of London.
The London Underground’s Tower Hill station (district and circle lines) is just a three minute walk away, and Tower Gateway DLR station provides direct connection to the Canary Wharf financial hub and the city airport.
The launch of Royal Mint Gardens further enhances the reputation of IJM Land as a developer of quality and unique property development projects.
“Given the current level of Malaysian interest in the UK properties, the development of this prime project provides IJM Land with the perfect opportunity to introduce a brand new property asset to discerning Malaysian property investors.
“The project will undoubtedly contribute new value and revenue streams to our shareholders and stakeholders,” Soam adds.
He says beyond Royal Mint Gardens, IJM Land will also be looking at other opportunities in London to take advantage of its robust property market and the strengthening pound sterling.
According to Knight Frank Malaysia managing director Sarkunan Subramaniam, London’s “safe haven” status has attracted foreign investors seeking long-term security and stability in their investment.
“London consistently ranks in the top four of the Global Power City Index and geographically represents a central meeting point for major international business and commerce for both the East and West,” he says.
Unique propositions
IJM Land has appointed Knight Frank as the sole marketing agent for Royal Mint Gardens.
Sarkunan says a stable political system and strong economic fundamentals play a considerable part in decisions taken by high net worth individuals (HNWIs) who are seeking a safe haven.
“Savvy investors are seeking to diversify their alternative investments into a tangible asset class. In fact, London can be considered a “country” in its own right given the overriding strength of the housing market compared with the UK as a whole.
“Capital values in London have a very low correlation with the rest of the UK but property market liquidity, stable growth and the transparent nature of the UK legal system are certainly viewed favourably when compared with its troubled counterparts in the Eurozone,” he explains.
He says research points to London as having a genuine undersupply situation in the residential market.
Planning remains strict while demand for housing in the capital continues to rise from British and international buyers alike, while investors seeking stable investments look towards economic fundamentals to support capital appreciation expectations along with potential for rental growth.
Meanwhile, Knight Frank’s London Residential Spring 2013 report says prime central London house prices have risen 53% since March 2009 and are 16.5% higher than the previous market peak of March 2008.
Hong Kong, Jakarta and Bejing are the only major global cities to have outperformed London in terms of price growth since the low of the global financial crisis in the first quarter of 2009.
It says London’s reputation as a global financial centre, its political stability and transparency as well as its lifestyle benefits ensures it remains a popular choice for the globe-trotting elite. The biggest international buyers in London over the past three years were from Russia, India, the US, Italy and France.
The crisis in the Eurozone has only served to boost interest in the city among Europeans with buyers from Italy and France the most active Europeans in the market in 2012.
Sales to Russians, US and Indian buyers remain the most prevalent. Between them, they made up over 15% of all sales last year.
“Given that London is such an important global hub, it is not surprising that it is able to attract such large international interest. According to recently-released census data for 2011, some 40% of London residents were born outside of the UK, highlighting the melting pot of nationalities who consider the city home,” the report adds.
Overseas buyers are key in the “new-build” market as the world’s wealthy are still drawn to London over the many global city alternatives. The key issue which has propelled London prices over recent years has been an appetite from global purchasers for tangible investments.
In terms of popular locations, South Kensington drew the largest number of international buyers as a percentage of sales in 2012, while Knightsbridge, Kensington, Hyde Park and Belgravia continued to remain popular.