Eco World International, Be Living to jointly develop 12 UK sites worth RM14b

KUALA LUMPUR (Dec 15): Eco World International Bhd (EWI) today signed an agreement with UK-based developer Be Living Holdings Ltd to jointly develop 12 sites in the UK with an estimated GDV of £2.6 billion (approximately RM14 billion).

Be Living is the development arm of UK contractor and developer Willmott Dixon Holdings Ltd.

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EWI today has agreed terms with Be Living to acquire a 70% stake with plans to jointly develop 12 sites in Greater London and the south east of England in two stages.

The joint venture also contemplates the acquisition of an unnamed new development management company that will comprise a “full multi-disciplinary team of highly-experienced personnel”, which will be the development manager of all the joint venture’s projects.

“This will provide EcoWorld International, as the 70% shareholder of the DMco, with a strong pool of in-house talent and manpower resources to grow its UK business and bring it to greater heights,” said EWI in a press release.

The first stage – where the acquisition agreement was signed today and is expected to be completed by the first quarter of 2018 – involves six sites.

These sites are Woking; Kensal Rise and Maida Hill in Brent and Westminster; Millbrook Park in Barnet, Barking Abbey Retail Park and Barking Tesco in Barking and Dagenham; and Nantly House, Lampton, in Hounslow. They are all located in London.

Meanwhile, the acquisition of the remaining six sites in stage two is in the final stage, according to EWI president and CEO Datuk Teow Leong Seng.

“The proposed joint venture is truly a game-changer for EWI on many fronts. Firstly, our development presence in the UK will potentially increase by fourfold with approximately 8,200 units to be added on to our existing portfolio once we complete the acquisition of all 12 sites,” he said during the press conference after the signing ceremony held in Bukit Bintang City Center sales gallery this morning.

According to Teow, several of the sites in stage one have received planning consent, which will enable the group to move on to plan for the launch of these sites within a year of completing the site acquisitions.

The others are targeted to be launched within a year of full planning consent being received.

Meanwhile, the remaining six sites in stage two have largely not received planning consents yet.

EWI has agreed with Be Living for these sites to be injected into the joint-venture progressively, subject to planning consents meeting pre-agreed minimum criteria set by the local councils for each of the other stage two projects.

“The 12 sites which are the subject of the joint venture are located within the London commuter belt in areas where the local population live and commute to the capital for work.

All are close to or within a 10 to 20-minute walk to tube or rail stations offering a 30 to 40-minute commute to Central London and providing easy access to international airports,” said EWI executive vice-chairman Tan Sri Liew Kee Sin. 

“Upon the signing ceremony, EWI will become a domestic developer in London. Going forward, EWI will be exactly like EcoWorld Malaysia that caters for different price points, locations and product range to UK buyers,” said Liew.

The signing ceremony was witnessed by Finance Minister II Datuk Seri Johari Abdul Ghani and British High Commissioner to Malaysia Vicki Treadell.

“Promoting greater economic and financial integration for greater market access and more efficient resource allocation would be a true game charger that has long been a part of our national agenda. Therefore, a joint effort between Eco World and Willmott Dixon has allowed our nations to play a critical role in the global setting, and most importantly, this ceremony reflects a parallel ambition between Eco World and our great nations,” said Johari.