EcoWorld announces two-year sales target of RM7 billion
KUALA LUMPUR: Eco World Development Group Berhad (EcoWorld) today announced a new two-year sales target of RM7 billion to be achieved over FY2015 & FY2016.
The Group’s sales for FY2014 had strongly exceeded its initial target of RM2 billion, set on a combined basis with projects launched under Eco World Development Sdn Bhd (EW Sdn Bhd). As at 31 October 2014 cumulative sales achieved totalled RM3.186 billion.
For the 13 months ended 31 October 2014 (due to the change in financial year end from 30 September to 31 October), the Group recorded revenue and profit before tax of RM148.4 million and RM12.1 million, respectively. Whilst revenue and profits were muted this year, the strong sales achieved in FY2014 will boost earnings growth significantly in the years ahead, upon completion of the Group’s proposed corporate exercise which was announced in April 2014.
EcoWorld will be holding an Extraordinary General Meeting on 12 December 2014 to seek its shareholders’ approval for the corporate exercise which it targets to complete in the first quarter of 2015.
As part of the corporate exercise, the Group will be acquiring development rights to eight projects from EW Sdn Bhd which will enable it to significantly scale up its business operations in the three key development regions of the Klang Valley, Iskandar Malaysia and Penang. This will increase the size of the Group’s land bank by 3,106 acres which will generate additional GDV of approximately RM30 billion.
Five out of the eight projects to be acquired under the corporate exercise have already been launched, whilst the remaining three are planned to be launched over the next two years. President & CEO Dato’ Chang Khim Wah said that the Group’s prospects going forward were very positive with several exciting new launches lined up for FY2015.
“The Group’s plans for 2015 include the launch of EcoSanctuary in Shah Alam and EcoTerraces in Penang. We will also be unveiling the new master plan for EcoTropics & Eco Business Park III in Iskandar Malaysia,” shared Chang.
The 308-acre EcoSanctuary, which is located south of Kota Kemuning in Shah Alam, will be developed as a luxurious eco-themed mixed project. “We are looking forward to launching this project in mid-2015 as it will be EcoWorld’s first landed luxury development in the Klang Valley,” said Chang
EcoSanctuary is set to offer landed homes incorporating intelligent and aesthetically pleasing designs with an emphasis on sustainability within gated and guarded residential enclaves. The development will also include commercial offerings situated in a beautifully-landscaped suburban sanctuary. Chang added that the accessibility of EcoSanctuary via four major highways in the Klang Valley will be a strong point to draw buyers seeking a serene, safe and secure environment, away from the hustle and bustle of city life.
With the Group firmly established in the Klang Valley and Iskandar Malaysia, Chang said EcoWorld aims to introducing its brand in Penang with the proposed launch of its EcoTerraces development in the Paya Terubong district in early 2015.
The 12.8-acre EcoTerraces has been planned as a low density, fully gated and guarded development with the existing natural waterfall on site acting as a focal point for the creation of a visually arresting vista of cascading pools and water features.
The Group is also finalising the plans for a 75.7 acre development on the mainland in Bukit Tambun which is planned for launch in late 2015. To be known as EcoMeadows, this will also be a fully gated and guarded strata development designed to showcase the Group’s signature master plan where houses are interlinked with green connectors, linear parks and pedestrian walkways. It boasts excellent connectivity by being only 5 minutes to the North-South Highway as well as just 10 minutes to the second Penang Bridge.
Down south, the Group targets to introduce its revised master plan for Kota Masai in Pasir Gudang which will now comprise two separate developments – a residential enclave named EcoTropics as well as a green business park called Eco Business Park III. These projects will bring the Group’s well received landed eco-living and green business park concepts to a new and upcoming development corridor, thereby further increasing EcoWorld’s market share and reach in the fast-growing Iskandar Malaysia economic region.
“With so many new projects in the pipeline and the strong performance of our existing developments in both the Klang Valley and Iskandar Malaysia, we are confident that 2015 will be a very good year for the EcoWorld Group” said Chang.