EASTERN & Oriental Bhd’s (E&O) will focus on developing prime residential properties in the United Kingdom as part of its growth strategy abroad.
Deputy managing director Eric Chan Kok Leong said although it owns the luxury heritage Eastern & Oriental Hotel and the beachfront Lone Pine Hotel in Penang, and holds the hospitality management contract for E&O Residences Kuala Lumpur, the immediate focus is to develop apartments in central London, instead of leisurely units.
“At this juncture, the E&O board has approved that our overseas growth engine be focused on central London until such time it feels it is prudent and opportune to expand elsewhere,” he said.
The Penang-based developer ventured into London in 2012 when it acquired Princes House, a prime freehold office-cum-retail building for £20.25 million (RM100.91 million).
Princes House is located along Kingsway, in the prestigious Borough of Westminster, and is E&O’s maiden offshore project.
Constructed in the early 1920s, it is a significant mixed-use building comprising around 4,281 sq m of office and retail space.
E&O is refurbishing the building into a high-end apartment block with 20 residential units and 34 serviced apartments ranging from 428 sq ft to 2,714 sq ft.
It expected gross development value (GDV) is RM250 million with prices for each unit averaging £1,800 (RM9,755) per sq ft.
“We ventured into London to extend the E&O property development brand and footprint overseas, and I am glad to say that this maiden endeavour has been successful” said Chan.
“Our launch of Princes House earlier this year was very well received with all units reserved without advertising.”
Besides E&O, other local developers with projects in London include SP Setia Bhd and Sime Darby Bhd, which, together with the Employees Provident Fund, are developing the RM40 billion Battersea Power Station residential project.
IJM Land Bhd, meanwhile, is involved in the development of the Tower Bridge project with a GDV of RM1.5 billion.