Eco World International secured RM1.05 billion sales in first half of FY2017

PETALING JAYA (June 15): Eco World International Bhd (EWI), the overseas property arm of Eco World Development Group Bhd, has achieved RM1.05 billion sales in the first half of FY2017 ended April 30, 2017 (1HFY2017).

EWI has set its annual sales target of RM2.5 billion for FY2017.

EWI president and CEO Datuk Teow Leong Seng said the company has secured a total sales of RM1.13 billion as at end-May 2017, bringing EWI’s total cumulative sales from its existing four projects to RM6.73 billion.

A well-balanced buyer profile and the fundamental attractiveness of its various projects in the UK and Australia have supported the sales growth, Teow said in a statement today.

For 1HFY2017, EWI has recorded a loss before tax of RM29.32 million in the current financial period, which is 75.1% lower than RM117.6 million reported for 1HFY2016.

Projects being undertaken by EWI currently include three sites in the UK where, through its joint-venture company, EcoWorld-Ballymore, EWI is developing waterside residential projects in the east and west of London. They are Embassy Gardens in Nine Elms, London City Island in Leamouth Peninsula, and Wardian London in Canary Wharf.

EWI is also developing a project named West Village in Parramatta, Australia — a suburb and major business district in Sydney and will shortly be entering the Melbourne market with its new Yarra One project.

 “We will see profit recognition beginning in FY2018 as handover commences in phases starting with London City Island and Embassy Gardens,” he said.

Moving forward, the company will focus on the completion of the proposed acquisition of 80% of the issued capital in Eco World-Salcon Y1 Pty Ltd and the launch of the Yarra One development in Melbourne, Australia.

Yarra One is located in South Yarra on the fringe of Melbourne Central Business District. The project was well-received by prospective customers during its recent introductory roadshows in key cities such as Beijing, Jakarta, Hong Kong, Brunei, Singapore and Kuala Lumpur.

In terms of buyers’ profile, Teow noted that for its London projects, EWI’s buyer profile is 54% UK-based with the balance 46% coming from Malaysia, Hong Kong, China, Singapore, the Middle East and other countries.

“In Sydney, the buyer mix is similarly well balanced with 48% from Australia and the balance 52% mainly from Malaysia, China, Hong Kong, Indonesia and Singapore,” he added.

Meanwhile, Teow said the company will diligently seek out well-located development sites in its three main target cities of London, Sydney and Melbourne to replenish its landbank.

 “We aim to build up a well-diversified property portfolio with a good spread of projects at various stages of development and price points to ensure both business sustainability and broad market appeal,” he noted.