Melia Spring Sdn Bhd (Eco World Malaysia’s subsidiary) and Permodalan Darul Ta’zim Sdn Bhd (PDT) have entered into an agreement for the joint development of homes on 200 acres (8,712,000 sq ft) located at Iskandar Puteri.
The development has a gross development value of RM1.67 billion and is aimed towards the middle 40 (M40) group, reported The Sun.
Eco World Development Group Bhd revealed that the agreement comes with the rights to develop the land for an RM20 million consideration, with a 20% share in the profits generated after-tax.
Datuk Chang Khim Wah, EcoWorld president and CEO, expressed delight in having a development opportunity close to the group’s Eco Botanic project. He also conveyed his support for PDT’s objective of meeting the M40 group’s homeownership aspirations.
“We would therefore like to thank PDT for coming up with a collaborative structure for the development and acquisition of the land which helps to facilitate the attainment of this objective,” he said.
Chang also pointed out how the proposed development aligns with EcoWorld’s goal to introduce a new range of houses priced at RM300,000 to RM450,000.
“The prospects of the proposed development are excellent. It will enable the group to ride on and contribute towards the continued development progress being made in Iskandar Malaysia and take advantage of the sizeable and growing market catchment there,” he noted.
“Furthermore, the presence of comprehensive existing amenities and completed infrastructure at Eco Botanic reduces the incremental cost to develop the land –greatly improving the project’s overall viability.”