EcoWorld

PETALING JAYA (Nov 8): EcoWorld International Bhd (EWI) has entered into a Heads of Agreement (HoA) with privately-owned contracting and interior fit-out group Willmott Dixon to jointly develop 12 sites in Greater London and southeast of England,  EWI announced in a press statement today.

The HoA, which is still subject to EWI’s board approval, will potentially see the acquisition by EWI of a 70% interest in Willmott Dixon’s residential development business, presently held under Be Living — a residential development company.

The proposed acquisition is expected to be formalised in December 2017 and has the potential to increase EWI’s presence in the UK by fourfold — giving it access to a sizeable landbank of about 6,700 homes with a total GDV of at least £2.5 billion (RM13.88 billion).

There is also a framework agreement in place for the development of a further 1,500 homes with an undetermined GDV. This will add about 8,200 homes on top of EWI’s current landbank in prime central London of about 2,500 homes which is being jointly developed with the Ballymore Group.

EWI executive vice-chairman Tan Sri Liew Kee Sin said the developer sees great potential in the UK and this deal shows its ambition to further grow its business in the country.

“As we work hand-in-hand with Willmott Dixon to develop quality homes that an average income earner is able to afford, we are confident that our shared values and complementary strengths will enable us to build a highly successful business together that is able to serve the needs of both the local market and broader international audience that calls London home,” he said.

EWI’s decision to become a local player along with the size and scale of its proposed investment clearly demonstrate its strong belief in the fundamental strength of the UK housing market as well as the long-term growth potential of the UK economy.

“Our long-term goal is for EWI to be a truly international developer with a strong local presence and customer following in the UK similar to what the EcoWorld brand enjoys in Malaysia today. The proposed partnership with Willmott Dixon will greatly facilitate this,” said EWI president and chief executive officer Datuk Teow Leong Seng

“Apart from the acquisition of a 70% interest in the project sites, we will also be acquiring a 70% interest in Willmott Dixon’s development management arm with full multi-disciplinary team of highly experienced personnel.

“This will provide us with a strong pool of talent and manpower resources to bring our UK business to greater heights going forward,” he said .

The proposed investment by EWI is the culmination of Willmott Dixon’s long-term strategy to inject additional capital to support Be Living’s growth plans as a stand-alone business following its demerger from Willmott Dixon last year, said its chief executive Rick Willmott.

“EWI is a great fit for Be Living, both culturally and in its ambition. The company shares our focus on high-quality residential developments that create a sense of place and legacy, and our ability to accelerate the delivery of housing on regeneration sites by combining homes for rent with private sale was also a key attraction for EWI.

“This investment will take Be Living forward to its next stage of growth and we look forward to developing a successful long-term partnership with EcoWorld once this transaction is concluded,” he said.

In the UK, EWI through its joint-venture company EcoWorld-Ballymore is developing three residential projects in the east and west of London — Embassy Gardens in Nine Elms, London City Island in Leamouth Peninsula and Wardian London in Canary Wharf.

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