KUALA LUMPUR: Property developer Eco World Development Group Bhd has exceeded its sales target of RM3bil with RM3.016bil secured for the financial year ended Oct 31, 2015 (FY15) despite a sluggish economy.
Chairman Tan Sri Liew Kee Sin said the company “is confident of achieving RM4bil in 2016”.
“We believe that we will continue to do well next year in spite of the market uncertainties, as we have maintained our capabilities in branding, quality, image projection and delivery of our products,” he told a press briefing following the release of its FY15 results here.
For the fourth quarter ended Oct 31, the company posted a net profit of RM19.7mil on the back of a revenue of RM681.9mil.
For FY15, the company recorded a net profit of RM43.96mil on a revenue of RM1.712bil, attributable to contributions from Eco Majestic, Eco Sky and Saujana Glenmarie in the Klang Valley, as well as offerings in Penang and Iskandar Malaysia.
In 2014, the company had changed its financial year-end from Sept 30 to Oct 31 and made up its financial statements for the 13-month period ended Oct 31, 2014. Therefore, there are no comparative figures for the results.
Sales for the upcoming year will be anchored by the company’s 11 ongoing projects, primarily in the landed township and business park segments such as the launch of Eco Business Park II.
This will include the company’s share of sales from its 40% stake in the Bukit Bintang City Centre (BBCC) project and 30% stake in Eco World International Bhd.
BBCC, a 19.4acre integrated commercial development next to Berjaya Times Square in Kuala Lumpur, will have a gross development value (GDV) of RM8.7bil.
It will comprise a one-million-sq-ft retail mall, six luxury residential towers, strata offices, hotels and an 80-storey signature tower.
BBCC’s project manager is Eco World, with the project’s joint developers including UDA Holdings Bhd and the Employees Provident Fund.
Construction will commence in mid-2016 and the project will be developed in phases over the next eight to 10 years, said president and chief executive officer Datuk Chang Khim Wah.
“For now, we are exploring traditional loans as well as Islamic products to finance the project. All three partners will contribute to fund the loan,” the property developer’s chief financial officer Datuk Heah Kok Boon said.
Eco World’s total land bank in Malaysia stands at 7,443 acres with a collective GDV of RM81bil.
Some 50% of the land bank is located in the Klang Valley, with the balance in Penang and Iskandar Malaysia in Johor.
“Unbilled sales stands at RM4.2bil, which we will enjoy over the next two to three years,” Chang said.
Chang expected a tough property market next year, but said the company would continue to have a “growing year”.
“We see real demand for our projects, as they are situated in locations that have a good catchment of the population.
“There are amenities and employment opportunities.
“We do know that when a product is done properly, we will be able to sell it at those locations,” Chang added.
