It’s a deal: Clockwise: Liew (standing, left) and Willmott Dixon group chairman Colin Enticknap look on as Willmott Dixon group chief executive Rick Willmott and EWI – International Business (UK) CEO Cheong Heng Leong sign the HoA.
PETALING JAYA: Eco World International Bhd (EWI) plans to expand its presence by four times in the United Kingdom (UK).
The property company said yesterday it had entered into a heads of agreement (HoA) to partner with UK-based Willmott Dixon, to jointly develop 12 sites in Greater London and the South East of England.
This proposed partnership is in addition to the existing joint venture it has with the Ballymore Group and will enable it to grow its landbank for future development substantially.
“This is hugely significant for EcoWorld International. After considering numerous proposals offered to us we are delighted to be partnering with a company of the experience and stature of Willmott Dixon in a deal that potentially expands our presence in the UK to four times our current size,” executive vice-chairman of the company Tan Sri Liew Kee Sin said.
The HoA, that is still subject to Eco World’s board approval will potentially see the acquisition by EWI of a 70% interest in Wilmott Dixon’s residential development business, now held under Be Living.
The acquisition is expected to be formalised next month and has the potential to increase EWI’s total presence in the UK by giving it access to a sizeable land bank of approximately 6,700 residential units with a total gross development value (GDV) of at least £2.5bil.
It noted that there is also a framework agreement in place for the development of a further 1,500 units and that the GDV for this portion is too early to determine.
“This will add around 8,200 units in addition to the EWI’s current prime central London land bank of about 2,500 residential units which is being developed under its existing joint venture with Ballymore,” the company said.
EWI said funding for the proposed acquisition of the 70% stake in Wilmott Dixon’s residential development business is expected to come from a combination of the proceeds of the company’s recent initial public offering and bank borrowings/other debt instruments, details of which would be disclosed later.
Datuk Teow Leong Seng, president and CEO of EWI said that the company would also be acquiring a 70% stake in Wilmott Dixon’s development management arm with full multi-disciplinary team of highly experienced personnel.
“This will provide us with a strong pool of talent and manpower resources to bring our UK business to greater heights going forward,” Teow said.
EWI said that this proposed acquisition will enable it to enter an extensive part of the popular London property market including projects in Barking and Dagenham, Barnet, Brent, Bromley, Ealing, Hounslow, Lambeth, Tower Hamlets and Westminster all of which are a short commute from Central London and the various international airports.
“It also includes one project outside of London in Woking, a busy commercial town, with a rapidly expanding artistic and cultural life within 25 minutes of Central London and close to London Heathrow,” the company said.
The company noted that most of the projects does fall within the price bracket that would entitle potential buyers to benefit from the UK government’s homeownership initiatives such as the Help to Buy scheme.
It said that further details of the proposed acquisition and joint-venture with Willmott Dixon will be announced when the definitive agreements are signed between the parties.
EWI said that funding for the proposed acquisition of the 70% stake in Wilmott Dixon’s residential development business is expected to come from a combination of the proceeds of its recent initial public offering and bank borrowings and / or other debt instruments.
