Eastern & Oriental Bhd (E&O) plans to launch developments with a combined gross development value (GDV) of between RM17bil and RM20bil within its township project in Andaman Island, Penang over the next 15 years.

E&O managing director Kok Tuck Cheong said the Andaman Island would be the primary focal point for the property developer in the coming decades.

To date, E&O has launched about RM1.1bil worth of projects there comprising two condominium developments.

“We are looking to launch landed properties development as well as higher end condominium projects within the Andaman Island by end of this financial year,” he said during a media and analysts briefing on the group’s first quarter ended June 30, 2023 (1Q24) results.

For 1Q24, E&O recording a net profit of RM32.95mil or earnings per share of 2.16 sen versus a net loss of RM1.65mil or loss per share of 0.11 sen in suffered in corresponding quarter in 2022.

Revenue for the quarter rose by 12% year-on-year to RM85.41mil due to improved contribution from the properties segment as a result of the land reclamation and newly launched development, Arica, within the Andaman Island.

Kok said the Arica development achieved about 70% sales to-date and is anticipated to be fully sold out by the end of the year on improving sentiments.

Kok said earnings visibility will be driven by E&O’s township development which will have a cumulative GDV of up to RM20bil over the next 15 to 20 years.

Alongside luxury homes, the group is also in the process of incorporating 1,000 units of affordable housing within its township development.

He added the construction of a bridge linking Gurney and Andaman Island is scheduled for completion by the end of 2024 which will improve accessibility to its development and thus make it more attractive for consumers.

“A crowd attracts a crowd. Once the Gurney bridge is completed, it will definitely attract even more,” Kok said.

Kok said the property market environment appears to have become significantly more stable and the group’s financial situation is showing signs of improvement.

Source: TheStar.com.my