Eco World Development Group Bhd (EcoWorld Bhd), formerly Focal Aims Holdings Bhd, has proposed a RM1.7bil corporate exercise to pave the way for it to be a “formidable” property developer with a presence in the Klang Valley, Penang and Johor, with a sales target of RM5bil for this year and next.
The exercise will also result in the upstart enlarging its land bank from 1,326 to 4,433 acres and its gross development value (GDV) ballooning from RM13.5bil to RM43.5bil. It will also acquire a development team with proven expertise and capabilities, namely Eco World Project Management Sdn Bhd, and Eco Macalister Development Sdn Bhd which owns an investment property asset in Penang.
EcoWorld president and CEO Datuk Chang Khim Wah told a press conference yesterday in Shah Alam that the company had proposed to acquire the development rights of up to eight projects from subsidiaries of Eco World Development Sdn Bhd with a combined GDV of RM30bil involving 3,106.8 acres.
The 11 projects, including the additional eight as a result of this exercise, will enable the company to launch four new projects in quick succession shortly to boost future revenue. The company would be kept busy for the next eight to 10 years, Chang said.
Less than a year old, the EcoWorld group has launched two projects, namely EcoSky in the Klang Valley and EcoBotanic in Iskandar Malaysia. It had achieved RM1.13bil in sales for both as at March 31, 2014.
The related party transactions involve a proposed subscription of shares in EcoWorld by shareholders of Eco World Development Sdn Bhd to partially fund the acquisitions. A rights issue of about RM788mil with warrants and a private placement up to 20% of the paid-up capital (about RM600mil) have been proposed to fund the acquisitions and as working capital.
On whether Tan Sri Liew Kee Sin, outgoing president and CEO of S P Setia Bhd, will be coming on board anytime, Chang said: “You have to ask the man yourself.”
The presence of Liew’s first-born son, Tian Xiong, 23, a director in EcoWorld, has fanned much speculation.
On the company entering the scene with the property sector facing a slowdown, Chang said there would always be challenges.
He said the group’s forte would be township development with predominantly landed properties.
There would be demand if priced correctly and in the right location, he added. On the possibility of the company going overseas, Chang said.
“We like to be in the countries we know, at the right time and place,” he added.
