EcoFirst to launch its biggest project next month
Property developer is banking on the job to boost sales
SUBANG JAYA: Property developer EcoFirst Consolidated Bhd is banking on its biggest project, which will be launched next month, to boost sales, even as the property market shows signs of slowing down.
Group chief executive officer Datuk Tiong Kwing Hee said the company will be launching commercial and residential units with combined gross development value (GDV) of RM600mil in Ulu Klang next month.
This is part of a RM5bil mixed development project known as Ampang Ukay the company is developing over 10 years on a 87 acre site located on the outskirt of the Kuala Lumpur city centre.
EcoFirst is also in the property investment business.
“Our revenue is expected to be better in the financial year ending May 30, 2017 (FY17) on the back of higher rental income from our mall, South City Plaza in Seri Kembangan as well as realising the sales from the first phase of Ampang Ukay development,” Tiong said after its AGM yesterday.
The Ampang Ukay project fronts the Ulu Kelang portion of the Middle Ring Road II and will also be EcoFirst’s biggest development project thus far.
Meanwhile, the company is close to completing a 529-unit Upper East @ Tiger Lane residential project in Ipoh which has a GDV of about RM302mil.
Tiong is targeting to complete the project in February next year.
At the shareholder’s meeting yesterday, EcoFirst received the approval to dispose of its crown jewel 1Segamat Mall in Johor to Hektar Real Estate Investment Trust for RM104mil cash yesterday.
Tiong said the company expected to complete the deal by May next year, of which the proceed would be used to bring down EcoFirst’s gearing.
“We made a strategic decision to sell our investment property, in order to unlock more of the company’s potential.
“The sales allows us to further strengthen our balance sheet and improve our returns to shareholders by focusing on our Ampang Ukay project, he said.
For its financial year ended May 31, 2016 (FY16), Ecofirst doubled its net profit to RM16.1mil from RM6.1mil a year ago.
Revenue for the period rose 49% RM121.2mil.
Its bottomline and topline were boosted from its project in Tiger Lane in Ipoh.
For the company’s South City Plaza mall in Seri Kembangan, Tiong said that there was no plan yet to sell the asset.
The mall, he said, has 92% occupancy rate and currently garnering about RM12mil revenue a year for the company.
“South City Plaza is a strata mall, it is not easy to sell and it also provides recurring income to the company.
“Next year we are targeting the rental income to grow to RM16mil a year on the back of higher tenant rate,” he said.
Tiong also noted that the company was on the lookout for more land in the Klang Valley.
“Our target now is to buy smaller land that can generate quick cash or a joint venture partnership with land owner,” he said. to