Eco World to get RM159mil refund over cancelled Penang project

A bird's eye view of the model scale for Eco Meadows during the the EcoWorld Group Bhd ‘Bringing Aspiration Closer to You’ showcase which highlights its upcoming project known as Eco Bloom at Queensbay Mall, Penang on Saturday. Pix by Gary Chen/The Star/26 MARCH 2016. NOTE: Eco Bloom is part of Eco Meadows.

KUALA LUMPUR: Eco World Development Bhd (EW Bhd) on Wednesday entered into a deed of revocation and rescission with the Penang Development Corp (PDC) to revoke and rescind the letter of award in relation to the aborted RM10bil Eco Marina project in Batu Kawan, and all their respective rights and obligations.

EW Bhd told Bursa Malaysia that the PDC would within one month (with an automatic extension of time of another one month) refund to it, free of interest, the initial payment of the purchase consideration of 299.64 acres (including the earnest deposit) and lease consideration for 150 acres.

Based on the company’s announcement in April last year, the sum to be refunded would be RM159.254mil. This comprises the initial payment of RM143.186mil for the RM730.93mil development parcel, the earnest deposit of RM3mil, and the initial payment of RM!3.068mil for the RM65.34mil lease parcel.

EW Bhd had said earlier that studies during the detailed planning process revealed that the golf course -- originally planned to be built on 150 acres -- would require a larger acreage, thus adversely impacting the viability of the project.

* For a related story, see Proposed golf course impacts viability of Eco World's Penang project