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Eco World exceeds RM2b sales target

KUALA LUMPUR: Eco World Development Group Bhd achieved sales of RM3.186 billion for its financial year ended Oct 31, 2014, surpassing its RM2 billion target.This financial year has a period of 13 months due to the change in its year end from Sept 30 to Oct 31.

In a statement yesterday, Eco World said the bulk or RM3.02 billion of its sales was contributed by projects launched under Eco World Development Sdn Bhd (EW Sdn Bhd), namely EcoSky in Taman Wahyu, Kuala Lumpur; EcoMajestic in Semenyih, Selangor; and Eco Botanic, EcoSpring and Eco Business Park 1 in Iskandar Malaysia, Johor Baru.

The development rights to all these projects are being acquired by Eco World, pursuant to a corporate exercise announced in April this year, and the group will be holding an extraordinary general meeting to seek the approval of its shareholders for this exercise on Dec 12, 2014. “It has been a fantastic year for the group, with all launches well taken up,” said Eco World president and chief executive officer Datuk Chang Khim Wah.

EcoMajestic, the group’s flagship Klang Valley township development, saw a take-up rate of 95% on its launch day in May this year, whereas EcoSpring and EcoSummer had close to 80% take-up.

Since then, EcoMajestic has gone on to launch several other phases with continued success, and to date, the project has sold RM753 million in total, comprising terraced units, semidees and bungalow land, and is slated to unveil its new sales gallery and show units by the end of November.

Currently, Eco World has five active projects in Iskandar Malaysia, which have all performed well. Sales from the group’s projects in the economic corridor alone totalled RM1.83 billion.

For the 12 months ended Sept 30, 2014 (FY14), Eco World recorded a revenue and profit before tax of RM112.4 million and RM9.3 million respectively.

The group’s financial performance in FY14 was constrained by the completion of Saujana Glenmarie in Shah Alam, and the inability to launch new properties at Kota Masai, Johor, while awaiting approval of the revised master plan by the authorities.

 

This article first appeared in The Edge Financial Daily, on November 21, 2014.

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