KUALA LUMPUR (March 30): Eco World International Bhd (EWI), which is 27%-owned by Eco World Development Group Bhd, has raised its sales target for its financial year ending Oct 31, 2018 (FY18), to RM3 billion from RM2 billion previously, based on plans for its existing projects and additional sales it intends to achieve from its new Be Living sites.

The sites were added to its landbank earlier this month, when the group completed the first stage of land acquisitions under its joint venture with UK-based Willmott Dixon Holdings Ltd’s development arm, Be Living Holdings Ltd, for £63.76 million (RM348.47 million).

“Our team in the UK is tremendously excited about the huge opportunities which have opened up for the EcoWorld brand there,” EWI president and chief executive Teow Leong Seng said in a statement yesterday.

Of EWI’s RM243 million sales in the first four months of FY18, RM206 million came from its properties in London, while RM37 million came from its Australian projects. “Whilst market conditions for prime London properties remain soft, demand at the mid-mainstream segment continues to be robust,” it said.

The group’s effective unbilled sales stood at RM5.89 billion as at Feb 28, a significant portion of which will be converted into revenue following the upcoming handovers of London City Island and Embassy Gardens. “[This] will allow the group to recognise its maiden profit in the current financial year,” EWI said.

The group posted a higher net loss of RM16.21 million yesterday for its first quarter ended Jan 31, 2018, due to lower unrealised foreign exchange gains compared to RM6.06 million a year ago.

Quarterly revenue fell 94% year-on-year to RM18,000 from RM327,000, as revenue from its property developments will only be recognised upon completion and delivery in the third to fourth quarter this year, the group said.

This article first appeared in The Edge Financial Daily, on March 30, 2018.

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