EcoWorld Malaysia to unveil SWNK Houze @ BBCC and other new projects in 2021 | Malaysian Institute of Estate Agents

EcoWorld Malaysia to unveil SWNK Houze @ BBCC and other new projects in 2021


Eco World Development Group Bhd's (EcoWorld Malaysia) focus to meet the housing needs of the M40, Gen Y, and Gen Z groups will expand further in the fiscal year 2021 (FY2021) with the launch of numerous new projects and products.

President and chief executive officer (CEO) Datuk Chang Khim Wah said coming up is the launch of Eco Botanic II in Iskandar Malaysia, Johor, early next year.

"We have received overwhelming interest for the first phase terraced homes priced from RM500,000 to RM800,000 which are well within the affordability range of young M40 families," he said.

Chang said EcoWorld Malaysia will also unveil SWNK Houze @ Bukit Bintang City Centre (BBCC) in Kuala Lumpur, offering a wide range of serviced apartments from the studio, one-bed, two-beds, 2+1 beds, three-beds, and dual-key units.

He said SWNK Houze @ BBCC will enable the group to meet the needs of young urbanites and investors seeking to own a residential property within the city.

SWNK Houze will be situated adjacent to the Mitsui-Lalaport Retail Mall, and above BBCC's Entertainment Hub, comprising Sony Music's Zepp Hall, the Malaysian Grand Bazaar, and cineplexes.

Chang said EcoWorld Malaysia plans to also officially launch Co-Homes at Eco Grandeur in Klang Valley and Eco Horizon in Penang.

He said homebuyers can choose to buy a single 1,000 sq ft unit at a starting price of less than RM400,000, or mix and match ground floor and/or first-floor units for harmonious multi-generational living.

For FY2021, EcoWorld Malaysia is targeting to achieve sales of RM2.88 billion, 25 per cent more than the actual RM2.3 billion sales achieved in FY2020.

"The above new launches are expected to contribute to the attainment of the sales target. This will enable the group to further strengthen its future revenue position which stands at RM3.7 billion as at October 31, 2020, still one of the highest in the industry," Chang said in a statement yesterday.

EcoWorld Malaysia exceeded its FY2020 sales target of RM2 billion by 15 per cent to RM2.3 billion.

Chang said there was a resurgence in buying interest following the re-opening of its sales galleries in 3Q 2020 and 4Q 2020.

"We are indeed grateful to our customers for their tremendous vote of confidence in our properties and projects which enabled us to achieve a total of RM2.3 billion sales for FY2020. This clearly demonstrates that by working hard to ensure that we have the right products in the right location, we have and will continue to be able to tap into the strong fundamental demand for quality homes, even in the most challenging of times," he said.

EcoWorld Malaysia's sales in the fourth quarter of 2020 (4Q 2020) exceeded RM1 billion, higher than the RM960 million recorded in 3Q 2020.

Collectively, sales in the second half of 2020 (2H 2020) accounted for 85 per cent of total sales in FY2020, it said in a filing with Bursa Malaysia.

Revenue in 4Q 2020 is the highest recorded in the four quarters of FY2020, signifying a healthy rebound in both sales as well as construction progress, following gradual relaxation of the Movement Control Order (MCO) from 3Q 2020 onwards.

Gross profit was lower than FY2019 as sales galleries had to be closed during the MCO, and also because of the temporary cessation of site activities from mid-March to mid-June, and the cumulative impact of inventories written down in 3Q 2020 and 4Q 2020.

Chang said that besides the solid performance of its residential developments, there was a rising demand for the group's four Eco Business Parks located in Senai, Tebrau, and Pasir Gudang in Iskandar Malaysia and Puncak Alam in Selangor.

The business park projects saw sales increase by 193 per cent to RM220.4 million in 4Q YTD 2020.

"A little known fact about EcoWorld Malaysia is the size of our industrial portfolio. We are quite a big player in this space with approximately 1,760 acres under development. This gives us total gross development value (GDV) of RM9.5 billion from our four Eco Business Parks," he said.

As at October 31, 2020, the group has achieved cumulative sales of RM2.1 billion from the business parks segment," Chang said.

RM3.7 billion sales in Malaysia and overseas same level as last year

EcoWorld Malaysia chairman Tan Sri Liew Kee Sin said the group achieved a total of RM3.7 billion in sales in Malaysia, the United Kingdom, and Australia for FY2020, the same level as the year before that.

Liew said the results were remarkable given the extreme disruptions the Covid-19 pandemic has caused globally and in every market in which the group operates.

For FY2021, EcoWorld Malaysia and EcoWorld International have set a combined sales target of RM5 billion.

"Based on the strategic plans we have put in place in every geographic location to restrategise and refocus on key segments of the market that have proven depth and resilience, I am confident that the target, despite being 30 per cent higher than the sales achieved in FY2020, is attainable," Liew said.

Liew said the proactive steps taken in FY2020 to reduce and reset the cost structure of both the group's Malaysian and International operations, will help counteract the impact of a soft property market and preserve cash flow and profits.

"Based on the measures undertaken, I am therefore confident the EcoWorld brand is well-positioned to not just come out of this crisis but to thrive in the years ahead," he said.

London property market to remain strong

EcoWorld International president and CEO Datuk Teow Leong Seng said the group believes that looking forward into FY 2021, demand for London properties will remain strong.

Teow said property agents are expecting the acute undersupply of residential properties in London to worsen in the coming years due to reduced supply as a result of disruptions caused by Covid-19.

"This will continue to provide support to London's property prices and rental rates. More importantly, the undersupply of homes will sustain the demand for rental properties and attract more investment into the UK's BtR sector. We are pleased to share that despite a turbulent year caused by the Covid-19 pandemic, commencement of handover of Wardian, London has started in 4Q 2020," he said.

Wardian, launched in late 2015, comprises two residential towers of 50 and 55 storeys.

As at October 31, 2020, 249 private units have been handed over to the purchasers with a balance of 293 private units sold to be handed over in the next few months, Teow said.

Teow said including other projects in the group's portfolio, it has delivered over 2,000 private units to purchasers since 2018.

He said by the 1st quarter of FY2021, EcoWorld International would have commenced handover of Yarra One in Melbourne, Australia.

"Once that has been completed, we would have effectively delivered to purchasers the bulk of the portfolio of projects we started with when we were listed in 2017. This will release substantial amounts of cash and following repayment of the respective project loans, we intend to repatriate some of the cash or profits generated for dividend declaration by EcoWorld International in FY2021," he added.

EcoWorld International has launched The Modern, the final block of Embassy Gardens, and Lily House, the third residential block in Verdo Kew Bridge in 4Q 2020.

Teow said construction works of these two residential blocks are ongoing and the group expects the development to start contributing significant revenue upon completion in FY2022.

EcoWorld International has set a sales target of RM2.2 billion for FY2021 which takes into account the expected gradual economic recovery and market sentiment in the United Kingdom and Australia.

Teow said the target will be revisited if the property market conditions change significantly.

EcoWorld International recorded its strongest quarterly sales with RM448 million achieved in 4Q 2020 bringing full-year sales to RM1.4 billion, 25 per cent higher than FY2019 despite the challenging market conditions.