KUALA LUMPUR (Jan 21) — Gamuda Land UK is strengthening its presence in the United Kingdom through two key real estate segments: a large-scale office development in the City of London and a growing portfolio of purpose-built student accommodation.
According to Gamuda Land UK head Niall Emmet Farmer, the group’s most significant UK investment to date is a 500,000 sq ft office project in the City of London, acquired in 2023. The development represents the largest portion of Gamuda Land’s gross development value (GDV) in the UK and has progressed steadily through major milestones, including planning approval, financing arrangements, and the appointment of the main contractor.
With construction preparations in place, attention has now turned to leasing strategy. Farmer noted that tenant selection and lease structuring will play a key role in maximising long-term value and exit potential. Further details on potential occupiers are expected to be announced at a later stage.
Beyond office developments, Gamuda Land UK continues to scale its student accommodation platform, supported by a persistent supply-demand imbalance in the sector. Farmer highlighted that the number of student beds has not kept pace with increasing enrolments, driven by global student mobility, the UK’s reputation as a leading education hub, and evolving international exchange programmes.
He added that the group’s latest student housing project in Stratford is being undertaken directly by the UK team without a joint-venture partner. The UK operation has expanded significantly over the past few years, supported by multidisciplinary professionals on the ground and a dedicated Malaysia-based team focused solely on UK investments.
At present, Gamuda Land UK’s development pipeline carries an estimated GDV of approximately £1.5 billion (about RM8.17 billion). Office developments account for the majority of this value, while three student accommodation sites contribute roughly £300 million, or about 20% of the total. Although offices make up around 70% of the current pipeline, the group remains flexible and open to acquiring additional student housing, residential assets, or other commercial properties as market conditions evolve.
Farmer said Gamuda Land has set a long-term target of delivering 3,000 student beds, while retaining the ability to adjust its asset mix. This adaptable approach mirrors strategies commonly adopted in mature real estate markets such as Kuala Lumpur and Selangor, where investors balance commercial property in KL with income-generating assets near employment hubs like office space in Bukit Jalil.
Commenting on broader UK market conditions, Farmer noted that the shift away from ultra-low interest rates has reshaped capital markets. Higher borrowing costs and increased government bond yields have driven repricing across commercial real estate sectors. However, recent indicators suggest market stabilisation, improving debt availability, and a gradual recovery in transaction volumes.
In the London office market specifically, Farmer pointed to historically low vacancy rates for high-quality, centrally located buildings, coupled with rising rents in core districts. This trend has created opportunities not only in prime locations but also in adjacent areas where tenant demand is expanding outward — a pattern similarly observed around industrial property in the Subang area and decentralised business nodes near factory clusters in Puchong.
Student accommodation remains another strong conviction for the group. Farmer described education as one of the UK’s most resilient economic sectors, supported by consistent global demand. Gamuda Land’s student housing developments are positioned to appeal to international students seeking well-located properties with modern amenities and strong connectivity.
Looking ahead, Farmer revealed that Gamuda Land is also exploring opportunities in the industrial and logistics sector. Growth in e-commerce, demand for faster delivery times, and a shortage of modern logistics facilities equipped for automation and advanced technology are creating new investment opportunities — trends that closely resemble demand patterns for industrial land in Selangor.
On regeneration-led projects, Farmer explained that Gamuda Land’s strategy in the UK differs from its approach in Malaysia. Rather than acting as the first mover, the group prefers to enter regeneration zones at a later stage, once placemaking foundations are established. This allows the company to manage development risk while benefiting from proven demand.
He added that Malaysian developers bring a competitive advantage due to their experience in delivering large-scale, integrated townships that combine infrastructure, amenities, and community planning — a skillset well recognised in Klang Valley developments.
Overall, Gamuda Land plans to prioritise assets in markets with deep liquidity, transparent pricing, and multiple exit options. According to Farmer, this strategy supports pricing resilience and allows capital to be recycled efficiently, even in higher interest rate environments.
Yao Mu Realty, based in Kuala Lumpur, Malaysia, specializes in industrial real estate for factories and land, delivering professional and efficient solutions.
Posted by Yao Mu Realty Sdn Bhd on 21 Jan 26
Malaysia