KUALA LUMPUR: Property developer, Eco World Development Group Bhd (EcoWorld), is proposing a corporate exercise that will help increase its landbank and presence in the market. It is acquiring the development rights to eight projects from its unit, Eco World Development Sdn Bhd, which has a combined gross development value (GDV) of RM30 billion, it said in a filing to Bursa Malaysia today. It is also proposing a subscription of shares in EcoWorld by shareholders of the unit to partially fund the acquisitions and ensure continuity of ownership. The developer plans a rights issue with warrants up to 20 per cent of the proposed private placement to raise funding for the acquisitions and as working capital for its development activities, it said. Lastly, the exercise also includes the acquisition of two units, Eco World Project Management Sdn Bhd and Eco Macalister Development Sdn Bhd, which owns an investment property asset in Penang. The corporate exercise sets the stage for EcoWorld to achieve explosive growth over the next few years. Now that all development projects of the unlisted entities have been integrated into the listed entity, we can focus our full attention to make EcoWorld one of Malaysias top property developers, said President and Chief Executive Officer Datuk Chang Khim Wah in a separate statement. EcoWorld will gain an immediate enlarged and active presence in all three key development regions of Malaysia, namely the Klang Valley, Iskandar Malaysia and Penang, he said. The size of its landbank will triple from 536 hectares to 1,793 hectares with GDV increasing from RM13.49 billion to RM43.53 billion. EcoWorlds development pipeline will expand from three to 11 projects, which are planned to be launched in quick succession within the next 1-2 years, the statement said. Its product range will expand to include affordable, upgraded and luxury homes, integrated high-rise developments and green business parks, it added. -- Bernama
Posted on: Mon, 28 Apr 2014 02:26:44 +0000
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