Eco World sales RM3.2bil exceeds RM2bil target

Eco World Development Group Bhd has exceeded its sales target, hitting RM3.18bil in its financial year 2014 (FY14), largely boosted by projects launched under Eco World Development Sdn Bhd (EW Sdn Bhd).

Its sales target for FY14 was initially set at RM2bil and some projects launched under EW Sdn Bhd were EcoSky, EcoMajestic, EcoBotanic, EcoSpring and Eco Business Park 1.

President and chief executive officer Datuk Chang Khim Wah said it has been a fantastic year for the group with all its launches well taken up.

In May this year, EcoWorld held a simultaneous launch of three residential developments which were EcoMajestic in the Klang Valley, EcoSpring and EcoSummer in Iskandar Malaysia.

It also previewed its first business park called Eco Business Park 1 in the Tebrau Corridor.

All four projects were extremely well received with EcoMajestic seeing take up rates of 95% on the launch day while EcoSpring and EcoSummer saw close to 80% take-up.

Since then, EcoMajestic has gone on to launch several other phases with continued success.

The flagship township development for EcoWorld in the Klang Valley, EcoMajestic is slated to unveil its new sales gallery and show units on site by the end of November.

“We are extremely excited about the opening of the show village as well as our 30,000 sq ft sales gallery.

“We look forward to welcoming our purchasers to the EcoMajestic show village to see for themselves what has been created on site,” said Chang in a statement yesterday.

Pursuant to a corporate exercise of acquisitions and fund raising announced in April this year, Eco World is proposing to acquire the development rights to eight projects, with a combined gross development value of RM30bil from the subsidiaries of EW Sdn Bhd.

It also planned to acquire two units from EW Sdn Bhd, namely Eco World Project Management Sdn Bhd and Eco Macalister Development Sdn Bhd, which own an investment property in Penang. The net consideration for the eight projects was RM1.77 billion.

It is also acquiring the development rights from certain subsidiaries of EW Sdn Bhd for RM3.78bil.

Eco World planned to issue 806.84 million new shares to raise RM1.37bil and a rights issue to raise RM788mil to fund the acquisitions and as working capital for its development activities. It is also proposing a subscription of shares in Eco World by shareholders of EW Sdn Bhd.

The group yesterday issued a circular to shareholders on these proposals and will be holding an extraordinary general meeting to seek approval from its shareholders on Dec 12. - By The Star

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