London will be the beneficiary of a new partnership between Ballymore and Malaysian-based Eco World Investment, which will see a £2.2bn residential project built in the capital.
Three developments in newest development venture
Three London developments were sold to the company comprising of the residential developments at Arrowhead Quay in Canary Wharf, phase two of London City Island on the Leamouth Peninsula and phase two of Embassy Gardens in Nine Elms.
The joint venture company called Eco World-Ballymore will see the Malaysian Investor take a 75% stake, whilst Irish-based Ballymore take the remaining 25%.
The newly formed company will then purchase the aforementioned developments from Ballymore for a cool £428m. In total, the developments, which are due for sales launch in 2015, have a gross development value of just over £2bn and will deliver close to 3,000 residential units and 250,000 sq ft of commercial, leisure and office space.
Foreign investors changing the face of the London landscape
Sean Mulryan, chairman and group chief executive of Ballymore, said: “This is a significant deal for Ballymore, not only due to the substantial proceeds it will generate for this firm, but also in terms of providing a successful template for how projects such as these can be developed jointly in the future.
“In EW Investment we have a great partner with substantial property experience, backed by individuals who were responsible for leading the visionary plans for the redevelopment of Battersea Power Station.”
Tan Sri Liew Kee Sin of Eco World Investment said: “[Ballymore’s] deep knowledge and experience in delivering projects from inception through to completion and post completion estate management in London make them an ideal partner to complement our strengths in delivering such developments globally.”
Such partnerships wouldn’t exist under a Labour government
Richard Carr, a Commercial and Residential Development Officer, believes that the partnership is great news for the UK, but questions if it would exist if Ed Miliband and Labour gain power in the summer.