EcoWorld enters into joint-venture to develop 533.92 acres of freehold land next to Setia Alam
KUALA LUMPUR: Eco World Development Group Berhad [EW Berhad or EcoWorld] announced that it had entered into a joint-venture with Cascara Sdn Bhd (Proposed JV) to jointly develop 533.92 acres of prime freehold land located next to Setia Alam in Shah Alam, Selangor (Project Land).
Two agreements were signed today between Eco Grandeur Sdn Bhd (a 100% subsidiary of EW Berhad) and Cascara Sdn Bhd (Cascara) to give effect to the Proposed JV:
- a conditional share sale and purchase agreement for the proposed acquisition by Eco Grandeur Sdn Bhd of 50% of the shares in Jendela Hikmat Sdn Bhd (JV Co) which is the registered owner of the Project Land, for a purchase consideration of RM303,500,000; and
- a subscription and shareholders’ agreement to jointly develop the Project Land as a mixed residential and commercial development to be known as Eco Ardence (Proposed Development).
“Through our 50% stake in Jendela Hikmat Sdn Bhd we will be able to gain immediate access to 533.92 acres of prime freehold land situated next to Setia Alam. This is one of the fastest growing corridors along the central development spine of the Klang Valley with a matured and good quality market catchment” said Dato’ Chang Khim Wah, President and CEO of EW Berhad.
“Apart from organic growth, over the last decade many prospective homeowners have chosen to relocate here from more congested areas in Klang / Shah Alam / Subang Jaya and Petaling Jaya. This has greatly enhanced the locale’s desirability as a highly sought after residential and commercial address” he added.
The strong growth of the vicinity around the Project Land was supported by infrastructural improvements such as the opening of the New Klang Valley Expressway (NKVE) link to Jalan Meru via Setia Alam, widening of Jalan Meru and improvements to surrounding access roads. This is evidenced by the high daily traffic volumes passing by the Setia Alam NKVE Interchange and increase in transacted prices of residential and commercial properties in both the primary and secondary markets around the area.
The Proposed JV therefore provides an opportunity for EcoWorld to work together with Cascara to undertake a large-scale mixed development with a potential Gross Development Value of RM8.58 billion without over-extending the balance sheet of EW Berhad. In addition, Eco World Project Management Sdn Bhd, a wholly owned subsidiary of EW Berhad will be appointed as Development Manager. The JV Co will also enter into a Brand Licensing Agreement with EW Berhad to enable the Proposed Development to be marketed as an EcoWorld brand project.
Through the Group’s 11 ongoing projects in the Klang Valley, Iskandar Malaysia and Penang, the EcoWorld brand name has gained a high degree of acceptance with customers. This is evidenced by the strong cumulative sales achieved by the Group of up to RM6.81 billion from FY2014 until 29 February 2016.
“Over the last three years, we have worked hard to create a distinctive look and feel for every EcoWorld development. Together with our JV Partner, Cascara, we aim to deploy the best of all we have learnt to craft an outstanding masterplan for Eco Ardence,” said Chang.
Based on EcoWorld’s deep familiarity with the site and in-depth knowledge of the market catchment, Eco Ardence will be positioned as a relatively high-end development with uniquely differentiated products tailored to meet the specific requirements of the targeted customer segment.
“Eco Ardence’s strategic location, large and relatively affluent population catchment will enable us to create a township with multi-generational appeal. We plan to have a good mix of luxurious and affordable landed homes for upgraders; there will also be innovatively designed apartments and well-conceptualised integrated commercial units which suit the lifestyle needs of younger homeowners as well as empty nesters. This will complement our Eco Gardens township located nearby which targets the first time homeowner market perfectly,” Chang mentioned.
Eco Gardens is part of the 2,198.40 acres of land that EW Berhad recently acquired in Ijok in the North Western Klang Valley emerging corridor. Along with the Group’s other projects, namely Eco Majestic and Eco Forest in Semenyih, Eco Sanctuary near Kota Kemuning, Eco Sky in Jalan Ipoh and BBCC at the heart of Kuala Lumpur, the Proposed Development will enable EcoWorld to expand the breadth and depth of the product range it is able to offer to customers within the Klang Valley.
“We are delighted to have the opportunity to partner with Cascara to develop a sizeable tract of prime freehold land next to Setia Alam. Based on the initial plans the development team have come up with, I am confident that Eco Ardence will be very well-received by our followers in the Klang Valley and will set new benchmarks for the Group in our continual quest of Creating Tomorrow and Beyond” said Tan Sri Liew Kee Sin, Chairman of EW Berhad.