Pair put pen to paper after beginning discussions last summer

JRL has formally inked the deal with a Malaysian conglomerate which will see the firm take a 50% stake in the business set up by John Reddington nearly 30 years ago.

Listed on Bursa Malaysia, the country鈥檚 stock exchange, IJM Corporation was set up in 1983 and specialises in construction, property development, materials and infrastructure concessions.

In the year to March 2024, IJM had a turnover of RM5.92bn (拢1.1bn) and posted a pre-tax profit of RM964m (拢172m). It will announce its 2025 results at the end of next month.

Royal Mint Street Phase II

JRL has been working with IJM on the Royal Mint Gardens residential scheme for the past few years

In a joint statement, the pair said: 鈥淭his marks the formal launch of a strategic partnership between two highly complementary businesses, combining IJM鈥檚 global development expertise with JRL鈥檚 in-house construction capability and strong UK track record.

鈥淭he completion reflects a shared ambition to build a long-term platform for delivering large-scale, high-quality developments across the UK.鈥�

The pair had been speaking about taking a possible stake in JRL, based at Borehamwood in Hertfordshire, since last summer with negotiations accelerating last autumn.

The value of IJM鈥檚 investment is undisclosed but it is understood its stake has been capped at 50% giving the two an equal holding in the business which in 2023 had a turnover of more than 拢800m.

JRL, whose group of 14 companies includes concrete frame business J Reddington and London Tower Crane Hire, racked up more than 拢80m in losses in the past couple of years. Its pre-tax losses in 2023 narrowed from 拢47m in 2022 but were still 拢36m. Revenue at the business, which employs 2,300 people, was up 8.5% to 拢826m in 2023.

JRL鈥檚 income in 2024 is set to be between 拢650m and 拢700m when it files its results at Companies House later this year, with the board expecting a return to the black.

Reddington said 2022 and 2023 had been among the most challenging in JRL鈥檚 history with the firm blaming the cost of materials and labour on fixed-price contracts for its losses.

The Midgard owner鈥檚 order book stands at 拢1.45bn while IJM has signed a deal to develop out eight Network Rail sites across London which could run to an estimated 3.5 million sq ft and a gross development value of 拢3bn.

The pair have been working together on a residential scheme close to the Tower of London called Royal Mint Gardens for the past few years, the first phase of which was completed in 2020.

The next phase, which includes private residences and a 450 room aparthotel, has recently begun and is slated for completion in 2028.

The combined group鈥檚 property development business now includes around 2,400 build-to-rent and co-living units across seven sites, with an estimated gross development value of 拢780m.

IJM also owns the former Shredded Wheat factory site in Welwyn Garden City which it bought in 2023. A planning application for the scheme, called Wheat Quarter, has gone in with the plans including building more than 400 houses and flats while the grade II listed grain silos will be turned into a sky bar and restaurant.

JRL鈥檚 current schemes include a 拢400m mixed-use towers job at 18 Blackfriars and the Trafalgar Way residential job in Canary Wharf, which includes close to 1,700 student beds for Urbanest.

Topics