Property tycoon Tan Sri Quek Leng Chan, who controls Guoco Group, is expected to be a major investor in the highly anticipated Initial Public Offering (IPO) of Eco World International Bhd (EWI).
EWI’s listing, which aims to raise about RM2 billion, has long been planned by EcoWorld Development Group’s Chairman Tan Sri Liew Kee Sin, with the proceeds to be used for property projects in mature overseas markets.
Currently, EWI has three property projects in the UK and one in Australia with a combined sales value of RM4.25 billion. These consists of West Village Parramatta in Sydney (RM784.3 million), while the London projects are Phase II of Embassy Gardens (RM720.9 million), Wardian (RM1.1 billion) and London City Island Phase II which has a sales value of RM1.63 billion.
According to an insider, EcoWorld has approached the Guoco group for the latter to acquire a part of the institutional portion in the listing. They wanted to purchase a substantial stake in EWI of around 27 percent for around RM500 million, and this shareholding is expected to come with board membership given the large investment.
“Quek, through his Guoco Group, has the financial muscle to support EWI’s property development activities and further land acquisitions in the UK and Australia, while Liew has the expertise and connections in both markets,” said a market watcher.
In fact, the conglomerate has a huge war chest US$3.26 billion (RM13.13 billion), while its majority-owned subsidiary GuocoLand has about RM4.87 billion.
It is believed that Quek will be leveraging on the deal to venture into the real estate market of the UK and Australia as Guoco Group currently has zero property projects in these mature markets.
Conversely, EcoWorld’s Liew has the expertise in handling such projects. In 2012, when he was Chairman of SP Setia, he successfully engineered the acquisition and development of the iconic Battersea Power Station.
The 38-acre mixed-use project in London is being carried out by a joint venture by SP Setia, Sime Darby Bhd and the Employees Provident Fund (EPF).
Although Liew’s term as SP Setia’s chairman has ended in September 2015, he wasted no time in transforming Eco World into a major property player.
Image: Sourced from The Star
Mangalesri Chandrasekaran, Editor at PropertyGuru, edited this story. To contact her about this or other stories email mangales@propertyguru.com.my
