Published: Friday August 3, 2012 MYT 7:30:00 PM
IJM Land in London JV property project, GDV RM1.4b
KUALA LUMPUR: IJM Land Bhd is venturing into UK via a joint venture to build a five-star hotel, residential apartment, which will have a gross development value (GDV) of £280mil (RM1.4bil).
IJM Land had on Friday entered into a shareholders' agreement with Lite Bell Consolidated Sdn Bhd to form a joint venture company in Jersey -- Mintle Ltd -- to acquire a 999-year lease over a 2.7 acre site.
It said the plan was for 650,000 sq ft space situated above the National Rail and DLR railway lines adjacent to the Royal Mint Street in central London.
Mintle also acquired one share of £1 each in dormant company, RMS (England) Ltd for £1. RMS England and Mintle would undertake a mixed-use development on the property.
The working capital to be funded by the company to develop the property would be between £25mil and £30mil.
"The joint venture is part of a strategic move by the group to expand its property development footprint beyond Malaysia and is in line with its long term vision of being an internationally admired property developer," it said.
IJM Land said the project, located on Royal Mint Street, London, and when completed, would have excellent views of the popular London landmarks, such as Tower of London, Tower Bridge, Royal Mint Court, St. Katharine's Docks and River Thames.
It said the project, granted detailed planning consent in April 2012, comprised of one block of 5-star hotel cum residential apartment and three blocks of residential apartments with a total gross built-up area of about 650,000 square feet.
"The gross development value of the project is expected to be around £280mil. The development cost of the project will be funded via a combination of borrowings and internally generated funds, the details of which have yet to be determined," it said.