KUALA LUMPUR: Eco World Development Group Berhad (“EW Berhad”) today announced that the Group had achieved sales amounting to RM1.187 billion as at 31 May for its FY2015 ending 31 Oct. The Group’s Klang Valley projects contributed RM622.8 whilst RM563.8 came from its Iskandar Malaysia projects.
The Group recorded revenue of RM575.8 million and profit before tax of RM23.3 million in the current period to-date. Ongoing projects which contributed to the profit and revenue achieved include Eco Majestic, Eco Sky and Saujana Glenmarie in the Klang Valley; Eco Botanic, Eco Spring, Eco Summer, Eco Business Park I and Eco Tropics in Iskandar Malaysia.
Chairman of EW Berhad Tan Sri Liew Kee Sin said the Group was on track with its launch, growth and expansion plans despite current market conditions.
“The strong support from our customer base has not only given us encouragement but confidence to proceed aggressively with our planned new project launches this year,” Liew added.
On 13 June 2015, the Group concurrently launched four new projects. Eco Sanctuary, the Group’s first luxury township in the Klang Valley features landed terraced villas, semi-dees and bungalows offering the best in modern eco living. Eco Terraces, the Group’s maiden launch in Penang offers exclusive low-density apartments nestled within beautifully landscaped parks and waterways set against a naturally occurring waterfall. Down south in Iskandar Malaysia the revised master plans for Eco Tropics and Eco Business Park III were also unveiled.
President & CEO of EW Berhad Dato’ Chang Khim Wah said excitement for these project launches has been overwhelming, supported by the opening of impressive new sales galleries at each project location to display the overall concepts, detailed master plans and unique architectural language of individual units.
In addition, the Group unveiled a new show village at Eco Tropics, Iskandar Malaysia showcasing classic homes inspired by the timeless architecture of the Hamptons resort on Long Island, New York to draw discerning homebuyers to the fast-rising Pasir Gudang growth corridor.
“The Group’s concerted efforts and significant investments to establish a signature EcoWorld brand identity through our numerous sales galleries and show villages, along with targeted and impactful marketing initiatives undertaken, have borne fruit,” said Chang. Initial take-up rates following the 4-project mega launch over the weekend of 13 June were extremely encouraging and the Group will now focus on converting these into sales over the next several months.
On the Group’s ongoing projects, Chang said its flagship Eco Majestic township in Semenyih achieved cumulative sales of more than RM1 billion less than 12 months from its maiden launch in May 2014 and continues to register strong sales on all new phases launched this year. The exceptional performance of this project is set to grow from strength to strength following the opening of the “Red Carpet” Bridge linking Eco Majestic to Exit 2102 of the LEKAS Highway.
In Iskandar Malaysia, the Group’s three residential projects of Eco Botanic, Eco Spring and Eco Summer, and its first green business park Eco Business Park I have also performed extremely well. Sales to local homebuyers, business owners, Singapore-based SMEs and MNCs continue unabated with increased interest shown by foreign purchasers as well.
As part of its efforts to expand its international customer base, the Group opened the EcoWorld Gallery @ Singapore in May 2015. This strategically located sales gallery on St. Martin’s Drive close to Orchard Road will enable EcoWorld to better serve its growing Singaporean customer-base whilst also providing it with increased opportunities to reach out to a much wider international audience.
At the same press conference, Eco World International Berhad (“EWI”) announced that it will be withdrawing its application which was submitted in October 2014 to be listed as a special purpose acquisition company (“SPAC”). Instead it will be pursuing listing based on the market capitalisation test under paragraph 5.02(b) of the Equity Guidelines (“Market Capitalisation Route”) on the back of its strong project pipeline and sales achieved by London City Island.
Following this announcement, Chang reiterated EW Berhad’s interest to continue working together with EWI with a view towards taking a 30% stake in EWI’s Proposed Listing & IPO.
“The strong association with EWI when it is listed will greatly enhance EW Berhad’s efforts to position EcoWorld as a global property brand. This will provide us with an important point of difference when we market our products to our Malaysian customers. It will also boost our efforts to grow our international customer base via our dedicated EcoWorld Gallery @ Singapore which is strategically located within the famed Orchard Road shopping district,” he added.
On the Malaysian corporate front, the Group on 21 April 2015 announced that it has accepted a Letter of Award (“LOA”) from the Penang Development Corporation (“PDC”) to develop approximately 450 acres of land in Batu Kawan, Penang, into a mixed development inclusive of an 18-hole golf course. This unique project, which will be called Eco Marina, boasts a 2.5km coastline on the north-western boundary and is flanked by a 150-acre golf course on its south-eastern border, thus enabling the Group to craft a truly one-of-a-kind gated and guarded landed strata development in Penang.
“With 10 ongoing projects which are well spread out over the Klang Valley, Iskandar Malaysia and Penang, and a strong pipeline of upcoming projects, namely Bukit Bintang City Centre, Eco Business Park II, Eco Meadows, Eco Marina and Eco Forest to be launched over the next two years, we are confident that the Group is well on track to achieve the RM7 billion sales target over FY2015 & FY2016,” said Chang.