IJM Land: Brexit won’t affect company’s long-term strategy in the UK

PETALING JAYA (June 24): The UK’s decision to leave the European Union (Brexit) may have some impact in the near term, but IJM Corp Bhd chief executive officer and managing director Datuk Soam Heng Choon said it will not have any material long-term impact on subsidiary IJM Land Bhd.

"London being a global city will always retain its allure to investors and the company’s long-term strategy is to continue to invest in the UK unless the macro environment in the UK changes drastically, which they do not foresee," he told TheEdgeProperty.com via email.

IJM Land, the property development arm of IJM Corp, had ventured into the UK market in 2013 with the Royal Mint Gardens (RMG), a mixed-use development located on Royal Mint Street in Central London.

Since the announcement of the referendum results, the pound sterling has seen volatile trading against the greenback as markets are worried about future trade uncertainties between the UK and the Eurozone.

Soam said the impact of currency volatility will be short term and it may not be the main reason discouraging investments into the UK as the economic outlook of the country remains resilient.

“There are many factors which affect a person’s investment strategies apart from currency alone such as long-term economic prospect, supply and demand aspect and ease of entry and exit of the investment in the said country,” he explained.

Meanwhile, Sime Darby Property Bhd reiterated its long-term commitment to the Battersea Power Station project — a £8 billion (RM45.12 billion) redevelopment of the iconic decommissioned power station into a mixed-use project undertaken jointly with S P Setia and the Employees' Provident Fund.

"The results of the referendum is not expected to impact the viability of the Battersea Power Station project. We are confident the iconic development will continue to generate interest in the longer term," it said.

The developer added that it is confident that London will continue to remain a key investment destination and financial centre.

While anticipating short-term volatility due to the Brexit, Eastern and Oriental Bhd (E&O) is maintaining a flexible and agile stance in the face of any changes in the market environment, said its group managing director Datuk Seri Terry Tham.

"Our projects in the UK are underway and are expected to progress as planned while the group continues to build its presence in the international market," he said in a press statement today.

He noted that the company has three small-to-medium scale projects in the UK, namely Princes House along Kingsway in London, ESCA House in Queensbay, and Thames Tower and Landmark House at Hammersmith.

The Princes House mixed-use development will be completed by end-July this year.

Other Malaysian developers who have exposure to the UK include Eco World Development Group Bhd (EcoWorld), YTL Land & Development and AlloyMtd Group.

However, when contacted by TheEdgeProperty.com, most developers declined to comment on the impact of the Brexit.

AlloyMtd Group declined to immediately comment.

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