According to Eco World president and CEO Datuk Chang Khim Wah, the group continued to see Penang as an interesting market, with Batu Kawan expected to become a development hotspot in the future. “While we accept the unavoidable circumstances, which have necessitated the rescission of the LoA, we remain interested in Penang as a valued market for Eco World,” Chang said.
Eco World Development Group Bhd and Penang Development Corp (PDC) have agreed to rescind the letter of award (LoA) that covers a proposed RM10bil mixed project in Batu Kawan.
This is because studies revealed the planned 18-hole golf course in the 449.64-acre site will require more land than what was initially estimated, thus impacting the viability of the project, Eco World said in a filing with Bursa Malaysia.
The LoA for the project was dated March 26, 2015.
“The original Request for Proposal (RFP) based on which the LoA was issued contemplated the development of an 18-hole international golf course on 150 acres of land, leaving the remaining land available for mixed-development referred to as Eco Marina,” Eco World said.
“However, extensive studies undertaken as part of the detailed planning process have revealed that the acreage required for the golf course development will be significantly higher than originally contemplated, which adversely impacts the viability of the project,” it explained.
It is understood that Eco World would have to do a new feasibility study on the project.
According to Eco World president and CEO Datuk Chang Khim Wah, the group continued to see Penang as an interesting market, with Batu Kawan expected to become a development hotspot in the future.
“While we accept the unavoidable circumstances, which have necessitated the rescission of the LoA, we remain interested in Penang as a valued market for Eco World,” Chang said.
“We are confident that Batu Kawan holds much promise as Penang’s future engine of growth and are keen to play a role in making it a key development hotspot for the nation,” he added.
Accordingly, Eco World would continue to look for other opportunities to acquire good land bank in Penang to develop more townships.
“This will enable us to replicate and build on the success we have enjoyed with our Eco Meadows project on the mainland,” said Chang.
Meanwhile, Eco World and PDC would shortly be executing a Deed of Rescission to give effect to the rescission of the LoA.
An announcement will be made in due course upon execution of the Deed of Rescission.
The group said the rescission of the LoA was not expected to have any material financial impact on the group’s earnings and net assets per share.
Eco World’s shares closed unchanged at RM1.28 yesterday.
The proposed Eco Marina mixed development project, estimated to be worth RM10bil, was supposed be a gated and guarded strata township scheme with a golf course development.
Under the plan, the PDC was supposed to call for a tender to develop a theme park next to Eco World’s proposed mixed development project.
When the LoA was given to Eco World last April, the state government said its plan was to turn Batu Kawan into the most modern satellite township in Malaysia. - The Star