GS Engineering & Construction’s UK-based modular building pod manufacturing affiliate Elements Europe has clinched a deal to construct a 23-story hotel in London, the Korean builder said Tuesday.

As the main contractor and pods and modules supplier, Elements Europe said it will start the construction within this year, targeting for the completion by second half of 2024. The building comprises of two basement floors, five floors for an office area and seven floors for a hotel. 

The 62 billion won ($49 million) project at 39 East Road in London will be funded by investment from UBS Asset Management’s Real Estate & Private Markets division. Europe’s well-known hotel chain Motel One will operate the building for the next three decades. 

Modular manufacturing is useful when it comes to construction of buildings with high occupancy -- such as residential buildings, hotels, student accommodation and care homes -- due to their repetitive internal designs. Such a technique is also regarded eco-friendly, as modules can be made at a factory and installed at the construction site, reducing the noise and other types of environment pollution.

Telford-based Elements Europe was acquired by GS E&C in January 2020 as part of the Korean firm’s investment to expand its presence in the European market. As the UK’s third largest modular building expert, Elements Europe has experience and a track record of delivering more than 20,000 pods and volumetric modules over the past decade, primarily for hotels and student accommodation developments, according to GS E&C.

“In the field of modular construction where market expansion is expected to grow, we are expecting to also grow our eco-friendly modular business through global partnership,” said an official from GS E&C.