KUALA LUMPUR: EcoWorld International Bhd's 70%-owned UK joint venture has signed heads of terms with a North American Pension Fund on a build-to-rent development valued at nearly £400mil.
EcoWorld London agreed to terms with Invesco Real Estate and its investors to forward fund the development of more than 1,000 new built to rent homes on two sites in Kew and Barking in London.
"EcoWorld International sees great potential in the UK Build to Rent market and this deal validates our strategic move to make the fast emerging Build to Rent business one of the key growth drivers for EcoWorld London.
"As a business we are perfectly placed to develop and manage these schemes to the high quality that investors and residents expect from us and through EcoWorld London we have the best in class Build to Rent capabilities - this significant investment by a US-based global pension fund in two of our projects is testament to that.
"In the future we will seek to do more deals of this kind and we have already received expressions of interest from other funds, particularly from Asia, keen to pursue potential investments into the UK Build to Rent sector. This signifies their confidence and ours in the positive long-term prospects of the UK property market, particularly that of the Build to Rent sector," said EcoWorld International vice-chairman Tan Sri Liew Kee Sin.
According to the statement, the Kew site is located next to the Brentford Football Club's stadium that is currently undergoing construction, and minutes away from Kew Gardens, a UNESCO world heritage site.
The Barking site is located next to Barking Abbey, which housed William the Conqueror in 1066 whilst he constructed the Tower of London.
"Both sites are well connected to Central London through train and underground networks and offer highly desirable yet affordable rental accommodation for tenant," said EcoWorld.
In accordance with the terms of the deal, EcoWorld London will complete the construction of the development and undertake the long-term management of the assets. It said planning permissions have been secured and development work commenced with construction due to complete in stages from 2020 onwards.
The detailed contractural arragements are targeted to be concluded by the end of October this year.
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