Malaysian construction group IJM Land has made its UK debut with the acquisition of a £365m mixed-use development site on Royal Mint Street, E1.
IJM has bought a 999-year lease on the 2.7-acre site from developer Zog Group for £20m. Network Rail is the freeholder.
IJM will invest between £25m and £30m to develop the 650,000 sq ft scheme and hopes to start on site within the next six months.
Zog received consent for the project, which includes a five-star hotel and three blocks of flats, last December.
IJM said: “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.
“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.”
IJM joins a growing group of Malaysian firms taking advantage of the weak pound and low interest rates to invest in the central London property market.
Earlier this month, Malaysian property, engineering and infrastructure group Amcorp Properties Berhad bought 30 Old Burlington Street, W1, from Standard Life Investments in a joint venture with developer Native Land for around £85m.
And last month a Malaysian joint venture comprising Employees Provident Fund, Sime Darby and SP Setia paid £400m for the iconic Battersea Power Station.
Jones Lang LaSalle advised on the Royal Mint sale.
annabel.dixon@estatesgazette.com
