Eco World sells over 1,000 BtR homes in London to Invesco Real Estate
A real estate firm has acquired over 1,000 built-to-rent (BtR) homes in London from Eco World London Holdings Ltd for £389 million (RM2.1 billion). Invesco Real Estate’s acquisition of the homes in Kew Bridge and Barking Wharf is one of the most significant BtR deals in the UK, said Eco World International Bhd (EWI). EWI owns 70% of Eco World London. EWI said the transaction is pursuant to the Heads of Terms announced by the group on Aug 29, and comes less than six months from the date EcoWorld London completed its acquisition of 70% of the Willmott Dixon residential development business for £84 million, covering eight sites. “The acquisition is being made on a forward funded basis which will enable EcoWorld London to recover approximately £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 financed by Invesco Real Estate, on behalf of its client as works progress,”said EWI. Commenting on the deal, Heng Leong Cheong, Chief Executive of EcoWorld London said at present, each of the leading BtR companies in London has fewer 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 a 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 EcoWorld London team,” he said. The apartments are to be specifically developed at Kew Bridge in West London and Barking in East London for long-term rental on behalf of one of Invesco Real Estate’s international separate account clients, said EWI. Construction work has commenced on both sites and the new homes will be available to rent from late 2020, it added.
Tags : INTERNATIONAL