Ecoworld London Inks RM2.1 Bln Build-To-Rent Deal

KUALA LUMPUR, Dec 4 (Bernama) – Eco World International Bhd’s (EcoWorld International) 70 per cent owned joint-venture, EcoWorld London, will let and manage over 1,000 build-to-rent (BtR) homes in London as part of a deal worth £389 million (RM2.1 billion) with Invesco Real Estate. In a statement Monday, EcoWorld International said Invesco would acquire these homes, which represented the entire BtR component of two sites, namely Kew Bridge in West London and Barking Wharf in East London. “The acquisition is being made on a forward funded basis which will enable EcoWorld London to recover about £66 million of its land cost shortly after exchange of contracts. “Additional Golden Brick payments, tied to the completion of foundation works for each section, are expected to commence six months from exchange with the remaining construction costs finance by Invesco Real Estate on behalf of its client as works progress,” it said. The apartments will be specifically developed for long-term rental on behalf of one of Invesco's international separate account clients. EcoWorld London's Chief Executive Heng Leong Cheong said that the company saw a clear mismatch between the homes that Londoners needed, and those available in the market, in particular homes catering specifically for the rental demographic. “At present, each of the leading BtR companies in London has less than 5,000 homes under management. Through EcoWorld London, our ambition is to secure a pipeline of over 10,000 homes in the next five years to become the BtR market leader. “We will do this through the launch of a new operating company focusing solely on rented homes which will be led by our highly experienced team,” he added. -- BERNAMA