KUALA LUMPUR: The Employees Provident Fund (EPF) is keen to participate in the development of the land in Batu Kawan, Penang, recently acquired by Eco World Development Group Bhd.
Eco World chairman Tan Sri Liew Kee Sin said EPF expressed its interest in a letter.
Eco World plans to develop Eco Horizon and Eco Sun townships on the Batu Kawan land, which it bought for RM875.24 million.
“The group’s plans to raise equity at the project level via its partnership for growth business model have borne fruit. We look forward to welcoming EPF as our development partner and are confident that with its support, the group will continue to grow from strength to strength,” said Liew at a press conference, here, yesterday.
Details of the joint development would be disclosed upon entry of the relevant agreements with EPF, he added.
EPF could also be the development partner for Eco World’s other projects, such as Eco Gardens and Eco Business Park V in Ijok, Selangor, as well as Eco Ardence next to Setia Alam in Bukit Raja, Shah Alam.
Liew said the proposed acquisitions of two parcels of land in Batu Kawan were in line with its strategy to focus on the country’s three main economic corridors, namely the Klang Valley, Penang and Iskandar Malaysia in Johor.
The plots are close to the Sultan Abdul Halim Muadzam Shah Bridge and Batu Kawan Industrial Park.
On sales, Eco World is confident of achieving its target of RM4 billion despite market slowdown.
President and chief executive officer Datuk Chang Khim Wah said as at May 31, the group’s sales amounted to RM1.315 billion.
This exceeded the RM1.187 billion sales secured during the corresponding period in financial year 2015.
“We are encouraged that the group’s performance has held up strongly despite the challenging market conditions. This shows that demand for well-planned, landed, gated and guarded townships with appealing concepts that enjoy good accessibility remains very resilient,” he said.
On Eco World International Bhd (EWI), Liew reiterated that Britain’s exit from the European Union might hold a silver lining for the company and its customers.
“The shock of Brexit would be momentary to financial markets. Brexit serves as an advantage to the group as real estate prices in the United Kingdom are expected to fall by 10 per cent due to the drop in the pound sterling.
“Sales have been strong and continue to be strong, and as long as we keep our costs under control, we should be okay,” he said.
Liew said EWI’s initial public offering would be delayed to September or October due to the Securities Commission’s (SC) approval process for the entry of a strategic partner.
“It was initially planned to take place next month but the SC process will take a few months, so we expect to list in September or October,” he added.