EcoWorld London signs deal for over 1,000 built-to-rent homes in UK

KUALA LUMPUR (Dec 4): EcoWorld London, a 70%-owned unit of Eco World International Bhd (EWI), is selling over 1,000 built-to-rent (BtR) homes in London to a real estate firm for £389 million (RM2.1 billion).

Invesco Real Estate’s acquisitions of the homes in Kew Bridge and Barking Wharf are one of the most significant BtR deals in the UK, EWI said in a statement. Construction work has commenced on both sites and the new homes will be available to rent from late 2020, it added. EWI said the transaction is pursuant to the heads of terms announced by the group on Aug 29, and comes less than six months from the date EcoWorld London completed its acquisition of 70% of the Willmott Dixon residential development business for £84 million, covering eight sites. “The acquisition is being made on a forward funded basis which will enable EcoWorld London to recover approximately £66 million of its land cost shortly after exchange of contracts.

“Additional ‘golden brick payments’, tied to the completion of foundation works for each section, are expected to commence six months from exchange with the remaining construction costs financed by Invesco Real Estate, on behalf of its client as works progress,” said EWI.

Heng Leong Cheong, chief executive officer of EcoWorld London, said at present, each of the leading BtR companies in London has less than 5,000 homes under management. “Through EcoWorld London our ambition is to secure a pipeline of over 10,000 homes in the next five years to become a BtR market leader,” he said.

EWI executive vice-chairman Tan Sri Liew Kee Sin said the successful signing of the deal, only three months from the date the heads of agreement was announced, is testament to the strong pulling power that the London property market continues to command globally.

This article first appeared in The Edge Financial Daily, on Dec 4, 2018.

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