EcoWorld International and Willmott Dixon have agreed heads of terms for the Malaysian developer to buy a 70% stake in Willmott Dixon’s residential business Be Living.
The deal will give the Malaysian investor, which already has a separate partnership with Ballymore, access to a land bank of more than 8,000 homes and access to both the for sale and rental markets.
Be Living has a land bank of 6,700 residential units with a GDV of at least £2.5bn, alongside an additional framework agreement for a further 1,500 units.
As part of the deal, a 70% stake in Be Living’s residential development management platform will also be acquired and EcoWorld said it plans to develop mainstream residential units for sale and to enter the BTR market.
Be Living, headed up by ex-Berkeley financial Nick Simpkin, has been exploring a potential sale or partnership for some time.
Currently EcoWorld has a 2,500 land bank of London homes as part of its JV with Ballymore, which will be unaffected by the new arrangement. EcoWorld said it continues to seek attractive opportunities in the higher-end prime central London locations.
The proposed deal will give EcoWorld access to markets in Barking and Dagenham, Barnet, Brent, Bromley, Ealing, Hounslow, Lambeth, Tower Hamlets and Westminster, alongside one in Woking.
Tan Sri Dato’ Sri Liew Kee Sin, executive vice chairman of EcoWorld International, said: “EcoWorld International sees great potential in the UK market and this deal shows our ambition to further grow our business here.
“Today’s announcement reinforces our commitment to supporting the UK’s efforts to address the housing shortage across London and the South East of England and underlines our ambition to play a positive and sustainable role in the UK market. We are responding to the government’s call to provide more quality homes that an average income earner is able to afford.”
The acquisition is subject to EcoWorld International board approval and is expected to complete in December 2017.
EcoWorld International is being advised by DLA Piper and KPMG. Willmott Dixon is being advised by Barclays, CBRE and Clyde and Co.
Peter Burns, managing director, CBRE said: “This innovative transaction is the first of its kind at such a scale and a landmark deal… With a GDV of circa £2.5bn, the deal reflects the appetite shown by overseas investors for multi-tenure residential opportunities, including build for sale and build to rent.”
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