Eco World confirms GDV for Batu Kawan devt at RM10b (Update)

KUALA LUMPUR: Eco World Development Bhd has confirmed the estimated gross development value (GDV) for the proposed Eco Marina development comprising of mixed development and the golf course in Batu Kawan, Penang would be RM10bil.

The property company said on Tuesday the development period would be about 10 years, with the construction for the mixed development and the international standard golf course to start within six months and three months.

“However, at this juncture, it is too preliminary to ascertain the development costs, expected profit and additional financial commitment for the proposed Eco Marina Development. 

“Nonetheless, the development costs for the proposed Eco marina development are expected to be funded through a combination of bank borrowings and/or equity funds, the quantum of which cannot be determined at this juncture,” it said.

The proposed Eco Marina Development is a 299.64 acres of leasehold land worth RM730.93mil.

The group is leasing about 150 acres of land for 30 years to develop the golf course, with an option for a renewal of another 30 years, for an estimated lease consideration of RM65.34mil.

Meanwhile, the initial payment of RM156.25mil was paid by Eco World Development via a combination of bank borrowings and proceeds raised from the Rights Issue of Warrants.

The group said that the payment of the total reimbursable sum would be used to finance the initial payment of proposed project. 

Furthermore, the company said the location of the proposed project attracts varied pool of investment across various sectors via the development of a SME village that offers ready-built factory units and a service centre for the development of local investors. 

"Batu Kawan is set to become the third satellite town of Penang after Bayan Lepas and Seberang Jaya due to its strategic location and close proximity to the Second Penang Bridge which connects Bandar Cassia with Batu Muang on the Penang Island," the company added. 

Moving forward, Eco World Development is confident that the proposed project would contribute positively to the future earnings of the group.

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