This article first appeared in The Edge Financial Daily, on June 27, 2016.

PETALING JAYA: The UK’s decision to leave the European Union (Brexit) may have some impact in the near term, but IJM Corp Bhd chief executive officer and managing director Datuk Soam Heng Choon (pic) said it will not have any material long-term impact on subsidiary IJM Land Bhd.

“London, being a global city, will always retain its allure to investors and the company’s long-term strategy is to continue to invest in the UK unless the macro environment in the UK changes drastically, which they do not foresee,” he told TheEdgeProperty.com via email.

IJM Land, the property development arm of IJM Corp, ventured into the UK market in 2013 with the Royal Mint Gardens, a mixed-use development located in Royal Mint Street in Central London.

Since the announcement of the referendum results, the pound sterling has seen volatile trading against the greenback as markets are worried about future trade uncertainties between the UK and the eurozone.

Soam said the impact of currency volatility will be short-term and it may not be the main reason discouraging investments in the UK as the economic outlook of the country remains resilient.

“There are many factors which affect a person’s investment strategies apart from currency alone, such as long-term economic prospects, [the] supply and demand aspect, and ease of entry and exit of investments in the said country,” he explained.

Meanwhile, Sime Darby Property Bhd reiterated its long-term commitment to the Battersea Power Station project — a £8 billion (RM44.82 billion) redevelopment of the iconic decommissioned power station into a mixed-use project undertaken jointly with S P Setia Bhd and the Employees Provident Fund.

“The results of the referendum are not expected to impact the viability of the Battersea Power Station project. We are confident [that] the iconic development will continue to generate interest in the longer term,” it said.

The developer added that it is confident that London will continue to remain a key investment destination and financial centre.

While anticipating short-term volatility due to Brexit, Eastern & Oriental Bhd is maintaining a flexible and agile stance in the face of any changes in the market environment, said its group managing director Datuk Seri Terry Tham.

“Our projects in the UK are under way and are expected to progress as planned, while the group continues to build its presence in the international market,” he said in a press statement last Friday.

He noted that the company has three small- to medium-scale projects in the UK, namely Princes House along Kingsway in London, ESCA House in Queensbay, and Thames Tower and Landmark House in Hammersmith.

The Princes House mixed-use development will be completed by end-July this year.

Other Malaysian developers who have exposure to the UK include Eco World Development Group Bhd, YTL Land & Development Bhd and AlloyMtd Group.

However, when contacted by TheEdgeProperty.com, most developers declined to comment on the impact of Brexit.

AlloyMtd Group declined to immediately comment.