IJM acquires 50% stake in JRL Group for RM283m to drive UK expansion
IJM Corporation Bhd has acquired a 50% stake in financially troubled UK construction firm JRL Group Holdings Ltd for £50 million (approximately RM283 million), marking a bold expansion into the UK's competitive and inflation-hit building sector.
The deal, completed via the subscription of new ordinary shares, gives IJM access to JRL's £1.45 billion (RM8.49 billion) order book and a vertically integrated operation comprising 14 specialist divisions.
While JRL has faced industry-wide headwinds including rising construction costs and labour shortages, IJM sees the partnership as a long-term strategic move to deepen its footprint in the UK and diversify its earnings base.
'The completion of this acquisition marks a significant advancement in IJM's UK growth strategy,' said IJM Group CEO and MD Datuk Lee Chun Fai.
'JRL's strong project delivery credentials, specialised technical expertise and solid order book enhance our construction capabilities… aligning with IJM's long-term plans in the UK market.'
Founded in 1996, JRL has delivered complex urban projects across the UK and is currently working on Phase 2 of Royal Mint Gardens — known as 88 Royal Mint Street — a mixed-use scheme that includes a 463-room Wilde Aparthotel and 79 residential units.
JRL was also the contractor for Phase 1 of the development, completed in 2020.
Though not explicitly framed as a rescue, JRL's need for recapitalisation has been clear.
IJM's investment will strengthen JRL's balance sheet and help it deliver on a growing pipeline.
JRL MD John Reddington called the partnership a major milestone, saying, 'Finalising this partnership marks a major milestone for JRL, built on mutual trust developed over years of collaboration… Together, we are well-positioned to unlock new opportunities and drive the next phase of growth in the UK.'
The acquisition dovetails with IJM Land's property development ambitions in the UK, including its Innova joint venture with Network Rail Property, targeting rail-adjacent sites across London with a projected gross development value of RM17 billion.
The collaboration is expected to benefit directly from JRL's ability to deliver complex infrastructure works, including over live rail corridors.
JRL has also expanded into development, with some 2,400 build-to-rent and co-living units in the pipeline, and a gross development value of RM4.58 billion.
Combined with IJM's other UK assets such as 25 Finsbury Circus and The Wheat Quarter in Hertfordshire, the move marks a clear step in building a full-spectrum presence across construction, development and recurring-income properties in a mature market.
While the acquisition carries short-term risks tied to JRL's financial health, IJM is betting on synergy, technical alignment, and the long-term value of being embedded in a strategically important market. — TMR
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