PETALING JAYA: IJM Corp Bhd
is proposing to acquire a 50% stake in United Kingdom-based diversified construction group JRL Group Holdings Ltd for £50mil (RM283mil).
In a statement, IJM said the strategic investment will further IJM’s expansion into the United Kingdom and strengthen its core construction capabilities.
The group said the transaction involves the subscription of new ordinary shares in JRL, representing 50% of the enlarged equity interest in the United Kingdom-based contractor.
Proceeds from the investment will be used to strengthen JRL’s balance sheet, enhance liquidity for working capital and support future growth.
“Established in 1996, JRL offers integrated solutions across piling, groundworks, concrete frames, architectural design, and mechanical and electrical services.
“The group has delivered a wide range of high-quality residential, commercial, and institutional projects, building a strong reputation in the United Kingdom construction market.
JRL is also recognised for its expertise in rail-adjacent and over-railway developments, which require specialised engineering solutions and the ability to integrate construction with active transportation infrastructure, said IJM.
“JRL has a sizeable order book of £1.5bil (RM8.5bil), which provides earnings visibility for the next three years and access to a robust pipeline of projects, complementing IJM’s outstanding RM6.4bil order book.”
After a challenging two years, IJM said JRL returned to profit in 2024, recording revenue of £311mil (RM1.8bil) and a pre-tax profit of £9mil RM51mil) for the first six months of its financial year.
“Driven by operational improvements, this financial recovery positions JRL as a more resilient and competitive player in the UK construction market.”
IJM said the investment aligns with IJM’s growth strategy to diversify revenue streams, develop adjacent and synergistic businesses and expand its geographical footprint.
“By integrating IJM’s development expertise with JRL’s proven contractor capabilities, this strategic move optimises the value chain, enhancing project execution and bolstering IJM’s foothold in the United Kingdom market.
“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 in the United Kingdom construction sector.”
IJM noted that JRL’s proven expertise in rail-adjacent and over-railway developments also supports IJM Land, IJM’s property arm, in its joint venture (JV) with Network Rail Property.
“This JV focuses on urban regeneration and mixed-use over-railway developments across multiple strategic sites in London, with a combined gross development value (GDV) of over £3bil (RM17bil).
IJM Corp group chief executive officer and managing director Datuk Lee Chun Fai said the investment is a strategic step forward for IJM, strengthening its construction portfolio and leveraging JRL’s technical expertise and market presence in the United Kingdom.
“Together, we aim to unlock new growth opportunities, deliver transformative projects and create meaningful synergies in a key international market.”
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 £700mil (RM4bil).
JRL’s construction arm, Midgard, served as the main contractor for IJM Land’s maiden UK property development, Royal Mint Gardens Phase 1, completed in 2019.
“This phase comprised high-rise residential developments built over active railway lines at Tower Hill, including the Docklands Light Railway. Midgard was recently appointed as the contractor for Phase 2, which includes a 463-room Wilde Aparthotel operated by Staycity, alongside 79 residential units,” said Lee.
“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.”
Meanwhile, JRL managing director John Reddington said the JV strengthens its position and provides the opportunity to build on its success with projects like Royal Mint Gardens Phase 1, while advancing its pipeline of developments in the United Kingdom.
