Group agrees €2.8bn venture

Ballymore Group, led by prominent Irish developer Sean Mulryan, is combining with a Malaysian property investment company to develop three London sites in a €2.8bn joint venture.

The project will see three large-scale residential projects previously owned solely by Ballymore transfer to the newly established joint venture company known as Eco World - Ballymore.

Eco World Investment (EW), incorporated in November of last year and led by the former chief executive and chief operating officer of Malaysia’s leading property development company, will take a 75% stake in the joint venture with Ballymore holding a 25% stake.

Essentially, Ballymore will sell €547m worth of property at three London locations into the joint venture, which will develop the projects, but Ballymore will continue to manage the developments going forward.

“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 development of the Battersea Power Station,” Mr Mulryan said yesterday.

“Together we will be bringing to market three outstanding residential property developments that provide diversity in both location and price point and which currently represent one of the largest such opportunities in London.”

The assets sold to the joint venture are located at Arrowhead Quay in Canary Wharf; Phase II of London City Island on the Leamouth Peninsula; and Phase II of Embassy Gardens near the new US Embassy.

The planned Arrowhead development adjacent to Canary Wharf comprises 750 residential units along with retail and leisure facilities and has an estimated gross development value of €756m.

London City Island Phase II has an estimated value of €786m, while the Embassy Gardens project has an estimated value of €1.27bn.

Ballymore returned to profit last year for the first time since the economic crash which saw the group’s assets become part of Nama.

Yesterday’s announcement will substantially reduce its borrowing, putting it closer to exiting Nama — which could happen as early as this year.

In conjunction with Oxley Holdings, Ballymore is also developing 650,000sq ft of office space and approximately 300 homes adjacent to the forthcoming Central Bank of Ireland headquarters on North Wall Quay, Dublin.