The Employees Provident Fund (EPF) is looking at participating in three property projects of Eco World Development Group Bhd (EWB), reported The Star.
According to EWB, EPF expressed its interest after it received an invitation from the group to raise equity at the project level through partnerships.
The projects for the proposed partnership between EPF and EWB are the Eco Business Park V and the Eco Gardens developments in Ijok; the Eco Ardence township located next to Setia Alam in Shah Alam; and the development of its newly acquired land in Batu Kawan, Penang.
EWB plans to develop Eco Sun and Eco Horizon townships on said land.
“The EPF has responded with a letter of expression of interest on a non-binding basis to participate in the joint-development of the above land subject to conditions contained therein, details of which will be disclosed upon the entry of the relevant agreements with the EPF,” said EWB.
EWB chairman Tan Sri Liew Kee Sin said the company is delighted that EPF has expressed interest to jointly develop the said projects.
In September, EWB unveiled a new business model called partnership for growth model, “which means that when we acquire good township land, we will invite partners to take part as a passive investor”, said EWB president and chief executive officer Datuk Chang Khim Wah at the company’s second-quarter results announcement.
“This is especially for those which have been following us throughout the years and would like to participate and enjoy the returns. They can come in at a project level.”
Notably, the company had proposed to acquire the 374.5acre land in Batu Kawan for RM875.24 million.
“The Eco World brand is very strong and we will develop the Batu Kawan land into a township. And to build a township on Penang Island is impossible, so we have decided to move to the mainland. Batu Kawan offers the best township opportunity in terms of development,” said Liew.
For the second quarter ended 30 April, EWB saw its net profit jump 194 percent to RM34.68 million from the previous year, while revenue climbed from RM417.82 million to RM614.60 million.
Earnings per share stood at 1.47 sen compared with last year’s 0.79 sen a share.
Despite the subdued sentiment in the property market, Chang believes that EWB will achieve its RM4 billion target.
“We still think that we will achieve it. We are quite confident about our 11 ongoing projects and these projects are at their infancy or growth stage,” he said.
Images credit: The Star Online
Diane Foo Eu Lynn, Senior Content Specialist at PropertyGuru, edited this story. To contact her about this or other stories email firstname.lastname@example.org