KUALA LUMPUR (April 16): Eco World Development Group Bhd confirmed it has received a letter of award (LOA) from the Penang Development Corp (PDC) for the development of the proposed Eco Marina Development.

According to a filing to Bursa Malaysia today, Eco World said the development will be carried out on 470 acres of land at Bandar Cassia, Batu Kawan in Seberang Perai Selatan, it added.

Under the LOA, Eco World will be acquiring 299.64 acres under a 99-year lease for the development or residential and commercial properties, for an estimated consideration of RM730.93 million.

It will also be leasing 150 acres of land for a 30-year period with an option for renewal for another 30 years, for the development of an international standard golf course with a minimum of 18 holes and a club house, for an estimated lease consideration of RM65.34 million.

The development parcel and the lease parcel are collectively referred to as the land parcels which excludes a total area of 20.36 acres identified by PDC for other purposes, Eco World said, adding that the estimated total consideration for the land parcels is approximately RM796.3 million.

Eco World also said that the valuation of the land parcels is being carried out by an independent valuer appointed by the group and the valuation of the land parcels will be tabled to the board for deliberation prior to the acceptance of the LOA.

It noted that the board is presently reviewing the detailed terms of the LOA and further details of the proposed Eco Marina Development will be announced after the group has accepted the LOA.