EcoWorld, US fund sign agreement on rent-to-build homes in UK
September 31, 2018 – EcoWorld London, a 70% owned UK joint-venture of Malaysia-based EcoWorld International, has signed an agreement with a North American pension fund for a build-to-rent (BtR) homes in the UK.
The UK subsidiary has agreed to the heads of terms with Invesco Real Estate and its investors to fund the construction of more than 1,000 BtR homes on two sites in Kew and Barking, worth nearly £400m.
The Kew site is located adjacent to the Brentford Football Club’s stadium currently under construction and minutes away from Kew Gardens, a UNESCO World Heritage Site.
The Barking site is located next to the Barking Abbey, where William the Conqueror stayed in 1066 during the construction of the Tower of London.
Both sites offer good connectivity to Central London through train and underground networks.
EcoWorld London will construct the houses according to the specifications agreed with the investors and then take up long-term management of the assets on their behalf.
It has secured planning permission for both sites and development work has already commenced. Construction is due to be completed in stages from 2020 onwards.
Detailed contractual arrangements are likely to be concluded in October 2018.
EcoWorld International executive vice chairman Liew Kee Sin said: “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.”