SUBANG JAYA (Sept 4): EcoFirst Consolidated Bhd expects to post better earnings in the financial year ending May 31, 2016 (FY16). This will be driven by its Ipoh condominium project and new launches in Ulu Klang, reports digitalEdge DAILY today.
The RM300 million Upper East @ Tiger Lane, a high-end condominium in Ipoh, will be the main contributor to the company's FY16 revenue, said EcoFirst CEO Datuk Tiong Kwing Hee at the company’s extraordinary general meeting yesterday.
The project has an 80% take-up rate to date and Tiong expects the figure to be 90% by the end of FY16.
Meanwhile, the group’s acquisition of 62 acres of land in Ulu Klang is expected to be completed by year-end.
EcoFirst is purchasing the tract from Zurich Insurance Malaysia Bhd for RM145 million. The deal has been delayed due to technical issues related to land alignment.
The land has been designated for a mixed-use project with a gross development value (GDV) of more than RM1 billion. The first phase of the project will comprise commercial and retail components with a GDV of RM422 million.
EcoFirst is also acquiring a 25-acre tract in Ulu Klang from Harta Villa Sdn Bhd, a wholly owned subsidiary of Tan & Tan Developments Bhd for RM62.8 million in cash.
Tiong said the group’s landbank would increase to 87 acres with the newly acquired land.
EcoFirst also owns and operates two retail malls, South City Plaza in Seri Kembangan and 1 Segamat Mall in Johor. Both malls contributed 25% to total revenue in FY15.
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