EcoWorld International has partnered with Invesco Real Estate on £400mil build-to-rent development in the UK
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 vice-chairman, Tan Sri Liew Kee Sin said EcoWorld International sees great potential in the UK Build to Rent market and this deal validates its strategic move to make the fast emerging Build to Rent business one of the key growth drivers for EcoWorld London.
He said that as a business it is perfectly placed to develop and manage these schemes to the high quality that investors and residents expect from it and through EcoWorld London, it has the best in class Build to Rent capabilities – this significant investment by a US-based global pension fund in two of its projects is testament to that.
Sin added that in the future it will seek to do more deals of this kind and it has 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 the confidence in the positive long-term prospects of the UK property market particularly that of the Build to Rent sector.
Both sites are well connected to Central London through train and underground networks and offer highly desirable yet affordable rental accommodation for tenant.
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.