” … the 434ha EcoMajestic in May saw a take-up rate of 95 per cent for the first phase, which comprised 612 units of two-storey terraced houses, prompting the developer to acquire more land for further development.”
EcoWorld buys 200ha in Semenyih for RM225.3m
An artist impression of EcoMajestic project in Semenyih
SHAH ALAM: Eco World Development Group Bhd (EcoWorld) has expanded its landbank with the acquisition of 199.37ha in Semenyih, Selangor, for RM225.33 million.
EcoWorld, through wholly-owned Majestic Blossom Sdn Bhd, bought the land from Univas (Far East) Sdn Bhd.
The land is located near EcoWorld’s current project, EcoMajestic, and is 15km southeast of Kajang and 40km southeast of Kuala Lumpur.
“This latest acquisition will increase our landbank in Semenyih to about 607ha,” said EcoWorld president and chief executive officer Datuk Chang Khim Wah in a statement yesterday.
“With two sizeable projects in this fast-growing development corridor, EcoWorld is well-positioned to serve a broad range of customers, and we intend to come up with exciting and innovative product offerings.”
He said the launch of the 434ha EcoMajestic in May saw a take-up rate of 95 per cent for the first phase, which comprised 612 units of two-storey terraced houses, prompting the developer to acquire more land for further development.
The acquisition is in line with EcoWorld’s goal to enlarge its presence in the Klang Valley, Iskandar Malaysia and Penang, with an increased landbank to more than 1,619ha from 537ha.
The Semenyih land, which has a gross development value of RM3.5 billion, has been planned for a mixed residential township with a focus on affordable housing and will complement the group’s overall master development strategy for EcoMajestic.
“Given the location, there is good potential for demand to be captured from older neighbouring townships, such as Bandar Rinching, Bandar Tasik Kesuma and Bandar Sunway Semenyih,” said Chang.
The acquisition will be funded through internally-generated funds and bank borrowings.
Read from source here.
Eco World buys Beranang land for RM3.5b township project
PETALING JAYA: Eco World Development Group Bhd has bought 492.7 acres of land in Beranang, Ulu Langat, Selangor, from Univas (Far East) Sdn Bhd for RM225.33 million to be developed into a RM3.5 billion township.
The acquisition will be undertaken by Majestic Blossom Sdn Bhd, the same wholly-owned subsidiary of Eco World that is acquiring the development rights to develop Eco Majestic in Semenyih, Selangor. Eco Majestic is a 1,073.12 acres township located within close proximity to the land in Beranang, which is situated between the towns of Semenyih and Broga.
Eco World said it plans to develop the land into a mixed residential and commercial township with a focus on affordable housing to complement the group’s overall master development strategy for Eco Majestic.
The developer said it will fund the project through external borrowings.
Eco World said it is too early to ascertain the total development costs, timing of development, expected profits as well as the additional financial commitment required for the project pending submission to the authorities.
“Nevertheless, the board of Eco World is confident that the project augurs well for the group’s plans to achieve strong and sustainable long-term growth,” it told Bursa Malaysia yesterday.
Once the acquisition is completed, Eco World’s landbank in Semenyih alone will increase to about 1,500 acres. With two sizeable parcels of land in the locality, Eco World said, it will be better positioned to reach out to a broader range of customers by offering products suitable for the mass, upgrader and luxury homes markets.
To enhance accessibility and improve connectivity, Eco World plans to upgrade the existing connecting roads from Eco Majestic to Bandar Tasik Kesuma, an established residential area, to the site.
Over the last several months, Eco World has announced a series of acquisitions and corporate exercises to boost its pipeline of projects and strengthen its balance sheet for future growth.
They include the proposed acquisition of 308.72 acres of land in Kota Kemuning to be developed into a luxurious eco-themed mixed residential and commercial project called EcoSanctuary, and development rights to eight projects.
“This will increase the group’s project pipeline from three to 11 projects, ensure that it has the development expertise to execute the projects acquired and provide it an immediate active presence in three key development regions of Malaysia namely the Klang Valley, Iskandar Malaysia and Penang,” Eco World said.
The developer is planning to raise about RM2.8 billion to fund its proposed acquisitions and provide working capital for ongoing and future projects. The latest acquisition brings Eco World’s landbank to more than 4,000 acres.
Read from source here.
Bridge of opportunity for Eco World
Biggest land owner: Developer shows interest to bid for 190ha in Batu Kawan in mainland Penang, says source.
The second Penang Bridge opening is likely to see the entry of Eco World Development Group Bhd in Penang as the company looks to emerge as the biggest landowner in Batu Kawan.
Business Times learnt that Eco World is participating in a request for proposal (RFP) by Penang Development Corporation (PDC) to buy 190 hectares on a hillock close to the landing point of the new crossing between Batu Kawan in Seberang Prai and Batu Maung on the island.
It is further learnt that the winning bidder will have to develop a golf course on 60ha of the total 190ha plot.
“Eco World is currently the only company that has shown interest in bidding for the land, for which the bid is expected to open at RM45 per sq ft,” a source said.
If Eco World succeeds in its bid, the source added, an affordable housing component will also feature on mainland Penang, where the company has already acquired some land in Seberang Prai Selatan.
Property analysts have also speculated that if Eco World, with nationwide landbank of l,200ha (of which about 40ha are in Penang), wins, its chief operating officer Datuk S. Rajoo will be making a comeback to Penang to oversee the development of the mammoth project.
Rajoo was formerly SP Setia Bhd’s northern region general manager.
The RFP is for an international theme park and golf resort development at Bandar Cassia in Batu Kawan.
The PDC is said to be inviting local and foreign firms to bid for the purchase and development of 87ha for the international theme park, and the 190ha, which Eco World is making a bid for, is meant for a golf resort development.
The requirement for interested bidders is a minimum paid-up capital of RM5 million with accumulated profit during the last five years. Applications to purchase the RFP document were sold at a nonrefundable RM2,000. The RFP, which was advertised on August 14 last year, listed October 312013 as its closing date. No official word, however, is out on the status of the successful bidders.
Last month, Penangbased property developer Aspen Vision Sdn Bhd announced that it had formed a partnership with Ikano Pte Ltd the regional franchaise holder for Swedish home furnishing store Ikea.
Land to be developed over 10 years.
Aspen-Ikano Sdn Bhd is to carry out a mixed development project comprising offices and residences over a 99ha site.
The land, which is strategically located at the landing point of the Second Penang Bridge, is set to be developed over 10 years.
It will include 12.1ha for the development of an Ikea store and the first phase of a shopping mall development (due to break ground next year and will take five years to complete), 18.2ha for the development of the shopping mall’s second phase, and 68.7ha for mixed development.
Eco World’s share price has risen from below RM1 some six months. It closed down two sen at RM4.40 yesterday.
Read here.
