KUALA LUMPUR (Nov 25): IJM Corporation Bhd (KL:IJM) said it is buying a 50% stake in UK-based construction firm JRL Group Holdings Ltd for £50 million (RM283 million) to expand into the UK and strengthen its core construction capabilities.
In a media release, IJM Corp said the transaction involves its subscription to 50% of the enlarged equity interest in JRL.
The fresh capital injected by IJM Corp will help strengthen JRL’s balance sheet, enhance liquidity for working capital, and support future growth.
JRL racked up more than £80 million in losses in the past two years in what the British firm described as “the most challenging” times in its 27-year history.
IJM Corp in the statement, however, highlighted that JRL returned to profit in 2024, recording revenue of £311 million and a profit before tax of £9 million for the first six months of the financial year.
JRL has a sizeable order book of £1.5 billion, according to IJM Corp, which provides earnings visibility for the next three years and access to a robust pipeline of projects. This, IJM Corp said, will complement the group's outstanding order book of RM6.4 billion.
“Driven by operational improvements, this financial recovery positions JRL as a more resilient and competitive player in the UK construction market,” IJM Corp said.
The Malaysian construction giant also said the investment will bolster its foothold in the UK market via optimising value chain and enhancing project execution. “Through its brands — including main contractor Midgard, concrete specialist J Reddington, McMullen Facades, Ark M&E, and London Tower Crane Hire — JRL’s in-house capabilities align with IJM's ambitions to expand its exposure to the UK construction sector.”
JRL’s proven expertise in rail-adjacent and over-railway developments would also support IJM Land Bhd, a property arm of IJM Corp, in a joint venture (JV) with Network Rail Property, the group noted.
The JV, which focuses on urban regeneration and mixed-use over-railway developments across multiple strategic sites in London, has a combined gross development value (GDV) of over £3 billion.
Who is JRL?
Established in 1996, JRL is a diversified construction group offering integrated solutions across piling, groundworks, concrete frames, architectural design, and mechanical and electrical services.
Since 2021, JRL has also ventured into property development, building a portfolio of seven sites comprising build-to-rent and co-living units, with an estimated GDV of £700 million.
JRL’s construction arm, Midgard, was the main contractor for IJM Land’s maiden UK property development, Royal Mint Gardens Phase 1, completed in 2019.
IJM Corp's group CEO and managing director Datuk Lee Chun Fai said in a separate statement that the group’s investment in JRL marks a strategic step, “strengthening our construction portfolio and leveraging JRL’s technical expertise and market presence in the UK. Together, we aim to unlock new growth opportunities, deliver transformative projects, and create meaningful synergies in a key international market”.
“JRL’s track record with Royal Mint Gardens Phase 1 demonstrates their ability to deliver complex and technically demanding projects. Their expertise complements IJM Land’s ongoing UK projects, enhancing our capability to deliver quality developments that drive long-term growth,” added Lee.
John Reddington, the managing director of JRL, said: “We are excited to align with IJM, a leading construction group from Malaysia. This joint venture strengthens our position, and provides the opportunity to build on our success with projects like Royal Mint Gardens Phase 1, while advancing our pipeline of developments in the UK.”
Shares of IJM Corp closed four sen or 1.3% lower at RM3.01 on Monday, giving the group a market capitalisation of RM10.98 billion. Year to date, the stock has risen 60.1%.
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