EWI buys into six projects in UK for £64.9m

PETALING JAYA: EcoWorld International Bhd (EWI) has finalised the first part of a twostage deal, to jointly develop 12 project sites in Greater London and South East London with Be Living Holdings Ltd, for £64.9 million (RM356 million).

The consideration is for a 70% interest in Be Eco World Holdings Ltd, and another 70% stake in Be Eco World Development Management Co Ltd from Be Living.

The purchase will see it work on six projects, namely South Woking, Woking, Kensal Rise and Maida Hill Brent and Westminster, London, Millbrook Park Barnet, London, Barking Abbey Retail Park Barking and Dagenham, London, Barking Site Barking and Dagenham, London, and Nantly House (Lampton) Hounslow, London.

The purchase consideration is to be fully funded by the proceeds from its initial public offering. Development costs, which have not been finalised yet are expected to be funded through bank borrowings and/or internallygenerated funds.

EWI’s president and CEO Datuk Teow Leong Seng said the group’s development presence in the UK will potentially increase by fourfold with 8,200 units to be added onto its existing portfolio once the 12 sites acquisition is completed.

“From a geographic and market penetration standpoint our reach will also extend from Central London where our products are priced from £800 per sq ft to £1,500 per sq ft to Greater London and the South East of England where we will be able to offer homes priced from £500 per sq ft to £800 per sq ft that an average income earner is able to afford.”

EWI was listed on the stock exchange in March this year. It has used RM1.66 billion of its proceeds for bank borrowings and payment of advances. It had another RM923 million as at Oct 31, 2017.