Eco World International partners Invesco Real Estate to fund development of build-to-rent units in UK
Eco World International Bhd’s (EWI) 70%-owned UK joint venture (JV), Eco World London Holdings Ltd, has signed heads of terms with Invesco Real Estate and its investors for one of the most significant build-to-rent (BtR) deals ever undertaken in the UK.
The latest deal comes on the heels of the completion of an acquisition of EWI’s eighth site under a JV with Willmott Dixon on Aug 20.
EWI said EcoWorld London has agreed terms with Invesco Real Estate and its investors to forward fund the development of more than 1,000 new BtR residential and commercial units in Kew and Barking in the UK, valued at nearly £400 million.
This represents one of the biggest single commitments into the emerging UK BtR sector,” it added.
As both parties head into a period of exclusivity, the detailed contractual arrangements are targeted to be concluded by the end of October.
According to EWI, the Kew site is located next to the new Brentford Football Club’s 17,250 capacity stadium that is currently under construction and just minutes away from Kew Gardens, a Unesco World Heritage Site.
The Barking site, meanwhile, is located next to the historical Barking Abbey, which housed William the Conqueror in 1066 while he constructed the Tower of London, it added.
“Both sites are well connected to Central London through train and underground networks and offer highly desirable yet affordable rental accommodation for tenants.
“EcoWorld London will complete the construction of the developments to the high specifications agreed with the investors and will then undertake the long-term management of the assets on their behalf,” said EWI.
Planning permission has been secured for both sites and development work has already commenced with construction due to complete in stages from 2020 onwards.
EWI has nine ongoing projects in the UK and two in Australia with total gross development value of £3.4 billion and A$558 million respectively.