The Enquirer understands that discussions began after JRL Group faced significant financial challenges, reporting losses of £83m. Chairman John Reddington described this period as “the most challenging two years” in the company’s 27-year history. Reports Contract Journal
Under the terms of the proposed agreement, which awaits formal approval by IJM Corporation, the £800m-turnover Hertfordshire-based construction group will continue operating under the JRL name. Its associated brands, including main contractor Midgard, concrete specialist J Reddington, McMullen Facades, Ark M&E, and London Tower Crane Hire, will also remain active.
The relationship between the two firms dates back to their collaboration on Royal Mint Gardens, a major residential scheme near the Tower of London. Developed by IJM Land, the UK property arm of IJM, the project was completed in 2019 and comprises three blocks of up to 15 storeys constructed over two operational railway lines.
Since then, IJM has been expanding its footprint in London and the South East. Earlier this year, it entered a joint venture with Network Rail Property to develop eight sites across London. This initiative, named Innova, is expected to deliver 1,600 new homes with a gross development value exceeding £3bn.
The new deal with JRL provides IJM, a £1bn-revenue Malaysian group, with in-house construction capabilities in the UK, enhancing its capacity to achieve its ambitious development goals.
For JRL, the partnership strengthens its financial position, refinances the business, and boosts liquidity. Despite injecting £50m into the business last year, JRL has faced cashflow pressures due to significant borrowing costs following losses on legacy fixed-price contracts.
In recent years, JRL’s main contracting arm, Midgard, has seen robust growth, contributing over £600m to group turnover and achieving 14% growth last year.
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