Eco Buildings forms $5m Indonesian joint venture to capture modular housing growth

Eco Buildings Group plc (LSE:ECOB) is widening its overseas reach through the creation of Eco Buildings Indonesia LLC, a new subsidiary established alongside local partner Messrs Cooper & Accors. The initiative is designed to tap into Indonesia’s significant demand for modular housing, as the group looks to roll out its GFRG-based building systems in markets grappling with housing shortages and escalating construction costs.

Under a binding memorandum of understanding, Messrs Cooper & Accors will commit $5 million in exchange for a 49% stake in the Indonesian entity. The investment will cover the installation of a new production line as well as all local operational expenses and working capital requirements. This structure enables Eco Buildings to expand without placing additional financial strain on the wider group.

The new facility is targeted to become operational by the end of 2026 and is expected to support major residential development initiatives, including Indonesia’s programme to deliver millions of affordable homes. By funding the expansion at subsidiary level, the arrangement could enhance group revenue visibility and cash flow potential while limiting capital outlay at the parent company.

From an investment perspective, the outlook is shaped by strategically positive corporate developments that suggest meaningful growth prospects. However, these are balanced against ongoing financial and valuation challenges. Technical indicators point to a mixed picture, with longer-term trends appearing constructive but shorter-term movements reflecting some uncertainty.

More about Eco Buildings Group

Eco Buildings Group is a UK-listed modular construction specialist focused on environmentally sustainable prefabricated housing. The company utilises glass fibre reinforced gypsum (GFRG) panel technology to deliver factory-built homes aimed at both affordable and premium segments. Its model emphasises cost control, faster build times and lower environmental impact in response to growing global demand for off-site construction solutions.