KUALA LUMPUR: Eco World Development Bhd, which recently acquired a 1.18-acre plot of land in Sydney’s main business district, plans to develop over 300 units of apartment there, as the company led by former executives of S P Setia Bhd targets to grow property sales from a projected RM2bil this year to RM3bil in 2015.
The aggressive sales target “is a fair figure for a young start-up like us,’’ its president and chief executive officer, Datuk Chang Khim Wah, told reporters yesterday.
Eco World, formerly known as Focal Aims Holdings Bhd, is set to triple its land bank from the current 1,326 acres to 4,433 acres across the Klang Valley, Iskandar Malaysia and Penang with the completion of an asset-injection exercise in October.
The exercise will increase the gross developmental value (GDV) of projects planned by the company from RM13.5bil to RM43.5bil.
The group has 11 ongoing projects.It has launched its first township development in the Klang Valley – the 1,073-acre EcoMajestic in Semenyih – with a gross developmental value of RM11.14bil.
It has also launched two residential developments in Johor Baru.
The first phase featuring 612 units of terraced housing saw a 95% take-up.
The developer has also launched two freehold residential developments in Johor Baru – EcoSpring and EcoSummer – totalling 613 acres with a combined GDV of RM5.87bil.
“Sales in our Klang Valley and Johor launches have been very encouraging, with 95% and 85% take-up, respectively,” Chang said.
In the fourth quarter, the group is set to launch two low-density projects in Penang – the 12.8-acre EcoTerraces in the Paya Terubong district as well as the 75.5-acre EcoMeadows on the mainland in Bukit Tambun.
Collectively, they add up to a GDV of RM1.26bil.
Chang said the group was continuously on the lookout for opportunities to expand its land bank.
“No, we are not overexposed in terms of land banking,” Chang said.
“The (asset injection) exercise will give us cash surplus and by the time that is completed, we should have stable financials to move forward.
“From our experience in property cycles, I’d say we are well covered in the different markets and we have the capacity to withstand cyclic lows. We even have contingency plans for material supply during peak periods.”
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