EcoWorld, PDT in Johor project with RM1.67b GDV

O Mixed development includes homes on 200 acres of freehold land in Iskandar Puteri targeted at the M40 group

PETALING JAYA: Melia Spring Sdn Bhd, a subsidiary of EcoWorld Malaysia has entered into a development agreement with Permodalan Darul Ta’zim Sdn Bhd (PDT) to jointly develop homes on 200 acres of freehold land in Iskandar Puteri targeted at the middle 40 (M40) group with a gross development value of RM1.67 billion.

According to a statement released by Eco World Development Group Bhd, the agreement with PDT entails the rights to develop the land for a total consideration of RM20 million, along with a 20% share of the profits after tax from the proposed development.

In addition, it also entered into a sales and purchase agreement with River Retreat Sdn Bhd to acquire the land for a purchase consideration of RM304.92 million to be paid on a staggered basis with interest over the development tenure of the land.

EcoWorld’s president and CEO

Datuk Chang Khim Wah stated he is delighted to have a development opportunity next to the group’s Eco Botanic project as well as to support PDT’s main objective to meet the homeownership aspirations of the M40 group.

“We would therefore like to thank PDT for coming up with a collaborative structure for the development and acquisition of the land which helps to facilitate the attainment of this objective,” he said.

Chang also noted that it has been more than six years since the group acquired any land in Iskandar Malaysia and during the period it has launched four townships and three business parks.

“All our projects have performed tremendously well as evidenced by the RM6.3 billion cumulative sales we recorded from FY14-19 from our Iskandar Malaysia projects alone,” he said.

The president commented that the group’s existing Eco Botanic development has only 100 acres undeveloped land remaining and the acquisition of the 200 acres of land makes perfect sense for EcoWorld.

“The collaborative structure of the transaction plus the fact that we have already invested substantially to build our brand and market presence here, gives us great flexibility to create an optimal mix for the new development to serve the housing needs of the M40,” he said.

Chang noted the proposed development is in line with EcoWorld’s plans to introduce a new range of homes priced from RM300,000-450,000 to take advantage of the infrastructure and lifestyle amenities it has put in place in its existing projects such as Eco Botanic.

“The prospects of the proposed development are excellent. It will enable the group to ride on and contribute towards the continued development progress being made in Iskandar Malaysia and take advantage of the sizeable and growing market catchment there.

“Furthermore, the presence of comprehensive existing amenities and completed infrastructure at Eco Botanic reduces the incremental cost to develop the land – reatly improving the project’s overall viability,” he said.