EcoWorld Malaysia hits RM2b sales following campaign

PETALING JAYA (Sept 20): Eco World Development Group Bhd (EcoWorld Malaysia) has achieved a total sales of RM2 billion this year as at Aug 31, 2018.

Sales more than doubled from the RM923 million recorded in the first six months of the group’s 2018 financial year ending Oct 31, 2018, it said in a statement today,

The strong sales performance was attributed to its #OnlyEcoWorld campaign, which was launched in June accompanied by its EcoWorld Help2Own (EW-H2O) financing package.

EcoWorld Malaysia president and CEO Datuk Chang Khim Wah said the intense social media and digital marketing drive over the last three months, which consists of a series of highly entertaining, informative and shareable videos has successfully reached the targeted audiences.

“As a result, we have been able to double up our sales across all three regions where our 18 ongoing projects are located. This proves that buying interest, whether in the Klang Valley, Iskandar Malaysia or Penang, remains strong – the challenge is in coming up with the right products and development concepts that meet the lifestyle needs and aspirations of today’s discerning homebuyers,” he said.

Chang noted that in the next two months, the company will continue to work relentlessly to achieve its FY2018 sales target of RM3.5 billion by Oct 31, 2018.

As at 3Q2018, RM1.55 billion in revenue was recorded by the group’s subsidiaries and RM705.4 million by its Malaysian joint-ventures of which the Group’s effective share, based on its equity stakes in the respective joint-ventures, amounted to RM374.8 million.

The company’s earnings before interest and tax (EBIT) grew by 10.9% to RM71.8 million in 3Q2018 from RM64.7 million in 3Q2017 whilst core profit before tax for 3Q2018 was 6.2% higher than 3Q2017.

According to Chang, the main reasons for the strong growth are the cost savings on transaction, marketing and administrative expenses as well as the commencement of revenue and profit recognition of all the group’s JV projects.

Beyond Malaysia, EcoWorld International (EWI) has handed over units in Amelia Tower of London City Island in July 2018. This marks the group’s first overseas project to be handed over, three years after the EcoWorld brand was launched internationally in 2015.

Amelia Tower has a take-up rate of 99% and many units were signed up for rental within a week of handover.

Besides this, EWI has recorded its maiden quarterly net profit attributable to shareholders of RM10.4 million, of which EcoWorld Malaysia’s 27% share amounted to RM2.8 million.

EWI is also on track to achieve its RM3 billion sales target for FY2018. As at Aug 31, 2018, RM1.026 billion sales have been secured with its ongoing projects in London contributing RM847 million while those in Australia generated RM179 million.

In addition to this, EcoWorld London announced on Aug 29 that it had entered into Heads of Terms with Invesco Real Estate, a North American Pension Fund, for the sale and forward funding of more than 1,000 new Build to Rent (BtR) homes on two sites in Kew and Barking.

Valued at nearly £4.1 billion (with remaining GDV of £2.7400 million (approximately RM2.1 billion), EWI president and CEO Datuk Teow Leong Seng said this will be one of the largest BtR deals ever undertaken in the UK

On the corporate front, the GDV of EWI’s UK projects has increased to £4.1 billion (with remaining GDV of £2.7 billion as at Aug 31) and the total development pipeline has expanded to over 8,000 units.

“We are also working towards acquiring the remaining four sites which form part of our Stage 2 Acquisitions under the joint-venture with the Willmott Dixon Group as and when the relevant conditions precedent are met. Meanwhile, in Australia we are targeting to complete our acquisition of the Macquarie Park site in Sydney by late-2018,” Teow said.

EcoWorld Malaysia chairman Tan Sri Liew Kee Sin said the prospects for EcoWorld Malaysia and EcoWorld International remain very bright.

As at Aug 31, EcoWorld Malaysia’s and EcoWorld International’s effective share of unbilled progress billings stand at RM6.16 billion and RM6 billion respectively.

The company has secured a total landbank of 8,126 acres with an estimated GDV of RM87.5 billion.