EcoWorld confident of meeting RM4 billion sales target in FY2016
KUALA LUMPUR: Eco World Development Group Berhad [EW Berhad] said it is confident of meeting its sales target of RM4 billion for FY2016. This is on the back of strong year-to-date Group sales achieved of RM607.8 million as at 29 February 2016 and positive reception to the recent unveiling of its strata offices at Bukit Bintang City Centre.
President & CEO of EW Berhad Dato’ Chang Khim Wah said today at Invest Malaysia 2016: “We are very pleased with the response we have received on the “The Stride” strata offices which we are planning to launch within the next couple of months at Bukit Bintang City Centre (BBCC).
“BBCC has successfully garnered the interest of Mitsui Fudosan, Japan’s largest real estate conglomerate, to take up a 50% stake in jointly developing a 1.4 million sq ft retail mall – this speaks volumes of their confidence both in the project as well as the continued health and vibrancy of KL’s property and consumer market,” he added.
Apart from Mitsui Fudosan, BBCC will also be working with Zepp Hall Network Inc, a subsidiary of Sony Music Entertainment (Japan) Inc to operate a state-of-the-art live concert hall right next to the retail mall. The Ascott Limited, a member of Singapore’s CapitaLand, have also expressed their interest to bring their internationally recognised brand of serviced residences to BBCC.
With such strong partners on board even before the project’s maiden launch, BBCC’s tagline “Where Life is Spectacular” looks set to become a reality. At 19.4 acres in total, this is the last large parcel of prime city centre real estate available for urban regeneration.
“BBCC’s location at the heart of the golden triangle provides us with unrivalled opportunity to create a one-of-a-kind fully integrated development offering superb connectivity combined with world-class shopping, entertainment, leisure, residential and office propositions to both local and international buyers. We aim to work closely with all our partners, namely UDA, EPF, Mitsui Fudosan, Zepp Hall and Ascott Limited to make BBCC a significant catalyst in helping Kuala Lumpur achieve its aspirations of becoming a global city,” said Chang.
BBCC’s maiden launch will include “The Stride” strata offices which comprise a 45-storey block catering to small business owners, entrepreneurs and SMEs looking for medium-sized individual office suites that come with premium grade facilities such as a grand lobby, shared meetings and conference facilities and security features.
Thereafter, two blocks of serviced residences, comprising 680 units of entry level apartments with sizes starting from 450 sq ft upwards will be launched. These smaller units are ideal for singles and young urbanite families who prefer a vibrant city lifestyle with conveniences such as public transport connectivity, work, shopping and entertainment right at their doorsteps.
Sharing on EW Berhad’s core township developments, Chang said they are also performing well and the Group is busy preparing for the first handover of properties to its purchasers. Leading the charge will be the Group’s Eco Botanic township in Iskandar Malaysia with 624 units of cluster & semidee homes scheduled for delivery in the third quarter of 2016.
In the Klang Valley, Eco Majestic in Semenyih will be handing over 182 units of bungalow lots and 612 units of terraces by the final quarter of this year. The Group’s Eco Sky integrated commercial project off Jalan Ipoh in Kuala Lumpur will also be delivering 140 office & retail units to its purchasers.
“This first handover of keys by our projects in both Iskandar Malaysia and the Klang Valley is a very important milestone for the Group. It marks the very first time we will have customers living within an EcoWorld signature development. Our whole team is working hard to ensure that this will be a delightful experience for them, to reward them for their faith and trust in the EcoWorld brand,” said Chang.
On the international front, EW Berhad’s plans to subscribe for up to 30% of Eco World International Berhad’s (EWI) enlarged paid up and issued capital has also seen progress following the approval of the Securities Commission Malaysia for EWI’s proposed initial public offering.
EWI’s three projects in London, United Kingdom and one project in Parramatta (West Sydney), Australia have collectively secured cumulative sales of GBP712.5 million as at 31 January 2016. Upon completion of EW Berhad’s proposed acquisition of up to 30% of the shares in EWI, it will be entitled to consolidate a proportionate share of the earnings including those arising from the sales secured by EWI.
“Apart from contribution to future earnings, our proposed subscription for up to 30% of the shares in EWI will provide us with many cross-branding and new learning opportunities from a project and product development standpoint.
“The close association with a successful international brand also gives us a significant competitive edge in marketing our projects to our local Malaysian customers. In addition, it will potentially open up new markets for us to sell our investment-grade products to international buyers,” explained Chang.
“With the EcoWorld brand doing well both in Malaysia and abroad, we are therefore well positioned to continue to record exciting and sustainable growth for the benefit of our shareholders and stakeholders in FY2016 and beyond,” Chang said.