KUALA LUMPUR (May 11): Despite forecasts of doom and gloom for the UK amid its decision to leave the European Union, opportunities are abound for Malaysian companies to invest in the country, especially in the property and construction industry.

“Post-Brexit, everyone said that the wheels were going to come off, but they haven’t at all. There was £14 billion invested in real estate in 2016, which was almost the same as previous years.

“We’re almost back to the same levels as pre-Brexit years. And there are lots of opportunities to invest here,” said Battersea Power Station Development Co chief executive Robert Tincknell at a recent forum on opportunities for construction and property development in the UK.

He said one of the major opportunities in the UK would be for supply of materials for the Battersea Power Station, owned by Sime Darby Bhd, S P Setia Bhd and the Employees Provident Fund, considering Brexit’s impact on the British currency.

“There are excellent opportunities for Malaysian suppliers in London at the moment. To date, about 60% to 65% of most materials for new buildings in Central London come from Europe.

“The exchange rate has changed quite considerably over the last 12 months, which has made the products at least 10% to 15% more expensive than they were before,” he said.

Tincknell said the developer has been in engagement with Malaysia External Trade Development Corp and has set up a team to engage with the foreign supply chain.

He added that the shareholders of Battersea Power Station are committed to engaging Malaysian suppliers for the next phases of the development.

Meanwhile, British High Commissioner to Malaysia Vicki Treadell said there are plenty of other “Batterseas” in the UK, referring to old projects and developments that require redevelopment.

“Taking the iconic example of Battersea, many of you have travelled to the UK over the decades noticed that it stood derelict, undeveloped and no one knew what to do with it.

“A Malaysian consortium came and transformed that part of the South Bank in London and indeed the investment and transformation have regenerated that whole part of the South Bank. Some of our inner cities and larger cities outside London are also in need of a Battersea,” she said.

Besides that, Treadell said there are also opportunities in terms of infrastructure, as the country looks to upgrade its infrastructure across the UK.

“If Malaysian companies can deliver highways in [the Indian state of] Maharashtra, why aren’t you looking at the great northern connections we are looking to develop as part of our Northern Powerhouse development?” she said.

Savills UK executive director Simon Hope highlighted the huge demand for housing in the UK, with the government considering a five-year plan to deliver 300,000 houses per annum, adding that the UK has not delivered that amount of housing per year since the 1980s.

He explained that a good part of demand is for housing located outside of London, where 60% of the population live, with most of the demand concentrated in the affordable segment, especially for student accommodation and workforce housing.

However, Malaysian companies would be entering a very competitive market if they intend to venture into affordable housing in the UK, according to Veritas Architects UK principle architect Peter Stocker.

He said there are already well-established teams in the UK that are already doing a good job in providing affordable housing, adding that developers would have to work with local authorities to make land available at a price which allows for affordable developments.

This article first appeared in The Edge Financial Daily, on May 11, 2017.

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