EcoWorld to launch new townships in Penang and Semenyih, sets RM4 bil local sales target for FY2017

SETIA ALAM (Dec 8): Eco World Development Group Bhd (EcoWorld) is aiming for an even higher sales target for its 2017 and 2018 financial years after having met its sales target of RM4 billion in FY2016 ended Oct 31, 2016.

The developer recorded RM4.01 billion of sales in FY2016. Its Malaysian projects contributed RM3.402 billion while Eco World International's (EWI) four projects contributed RM608 million, said EcoWorld CEO and president Datuk Chang Khim Wah at a press conference today.

Notably, the RM608 million sales is based on EcoWorld's subscription for its 27% stake in EWI pursuant to the latter's initial public offering in the first quarter of next year.

"In FY20017 and FY2018, we will be targeting RM4 billion of sales solely from Malaysia projects, while we expect to be entitled to a proportionate share of international sales by EWI based on our proposed 27% shareholding in EWI," said Chang.

He expects EWI's sales to be anchored by its existing four projects whereas the sales from Malaysia will be contributed by the existing 15 projects along with the proposed launch of two new projects: Eco Horizon in Penang Mainland and Eco Forest in Semenyih, Selangor.

Spanning 300 acres, Eco Horizon is a leasehold township development with an estimated gross development value (GDV) of about RM8 billion.

Eco Forest is another township project with a GDV of about RM3 billion. The freehold development spans 492 acres.

Both Eco Horizon and Eco Forest are poised to be launched by mid-2017, said Chang, adding that the developer is looking to enhance and improve the ongoing township developments in order to boost sales.

President and CEO of EWI Datuk Teow Leong Seng said EWI's sales in FY2016 were mainly contributed by West Village in Sydney and three projects in the UK, namely Embassy Gardens Phase 2, London City Island Phase 2 and Wardian London.

Despite concerns regarding the impact of the Brexit referendum, EWI is still optimistic about UK’s property market outlook as there is still strong demand for mid-end properties, which is the focus of the company in the UK, said Teow.

Meanwhile, the RM3.402 billion in sales in Malaysia were contributed by EcoWorld's 40%-owned Bukit Bintang City Centre project, Eco Majestic, Eco Ardence, Eco Grandeur, other ongoing projects and new launches, noted Chang.

Meanwhile, EcoWorld chairman Tan Sri Liew Kee Sin said the company's ability to consistently meet and exceed its sales target both in Malaysia and abroad demonstrated the team's execution capability in rapidly bringing highly sought-after developments to the market.