KUALA LUMPUR (April 24): IJM Corporation Bhd (KL:IJM) has acquired a 50% stake in financially troubled UK-based construction firm JRL Group for £50 million, or about RM283 million.
The acquisition positions both builders to jointly scale capabilities and pursue growth opportunities in the UK, IJM said in a statement. In the meantime, JRL has a £1.45 billion order book, providing earnings visibility for the next three years, the company noted.
“The completion of this acquisition marks a significant advancement in IJM’s UK growth strategy,” said IJM managing director Datuk Lee Chun Fai.
JRL racked up more than £80 million in losses in the past two years in what JRL chairman John Reddington described as “the most challenging” times in its 27-year history.
Both IJM and JRL worked together on a major residential scheme in London known as the Royal Mint Gardens. Close to the Tower of London and completed in 2020, the 325,000-square-feet project is also IJM’s first in London.
JRL has also been appointed as the contractor for phase two — branded as 88 Royal Mint Street — which includes a 463-room Wilde Aparthotel operated by Staycity Group and 79 residential units.
“JRL’s strong project delivery credentials, specialised technical expertise and solid order book enhance our construction capabilities,” Lee said. “This enables us to effectively pursue complex, transit-oriented and infrastructure-led developments.”
The investment also complements IJM’s Innova joint venture with Network Rail Property to develop eight central London railway-adjacent sites with a combined gross development value exceeding £3 billion, the company added.