Property developer Eco World Development Group Bhd is seeking shareholders’ approval for its multi-million ringgit mixed project in Penang.

The company issued a circular to Bursa Malaysia detailing two land parcels totalling 449.64 acres in Batu Kawan, which it is acquiring and plans to develop for a total consideration of RM796.27mil.

To recap, Eco World had in April received a letter of award from Penang Development Corp (PDC) to undertake the projects.

The projects comprise a 299.64-acre leasehold development – Eco Marina – which it is acquiring and developing into a mixed development of RM730.93mil, as well as the leasing of a 150-acre parcel as an international standard golf course with a minimum of 18 holes and a club house, for a 30-year period with an option to renew for a further 30 years for RM65.34mil.

This brings the total consideration for both sites to RM796.27mil.

Eco World said the total consideration for the 299.64 acres and 150 acres took into consideration the development potential and prospects of the land parcels in view of their strategic location being close to the Second Penang Bridge.

It added that both lease and purchase consideration were derived based on RM56 per sq ft (psf) and RM10 psf, respectively, based on the estimated land area of both parcels.

“There is also the potential gross development value of about RM10bil to be generated from the proposed Eco Marina Development based on management’s estimates.

“This is seconded by the market value of properties surrounding the land parcels from the sale of similar properties that were transacted recently as well as the asking prices of similar properties in the neighbourhood,” Eco World said.

Although the development parcel and the lease parcel were to be purchased and leased separately, both land parcels were to be viewed as one single parcel as both developments were “complementary to one another and inter-linked”.

Meanwhile, the company said it was in the midst of preparing the masterplan and layout plan for the land parcels for submission to the relevant authorities.

The immediate neighbourhood of the land parcels comprised the ongoing developments of the Batu Kawan Industrial Park on the south side of the road leading into the Second Penang Bridge, the residential Crescentia Park development as well as the Stadium Batu Kawan.

Nearby commercial developments include the Ikea store and shopping mall, Penang Designer Village and KDU University College campus, all of which are located within Batu Kawan.

The Eco Marina project has been targeted for a first-half 2016 launch and development will be carried out over the next 10 years.

The project will strengthen the developer’s presence in Penang since opening its first sales gallery in Macalister Road last year.

While expecting the remainder of the year to be challenging, the company’s board is confident of achieving its sales target of RM3bil for the current financial year as there would still be “demand for good quality products in the right location”.

The company said it would continue to invest in innovative campaigns to further raise EcoWorld’s brand profile and actively promote its 10 ongoing projects.

Shares of Eco World fell 1 sen to RM1.39 yesterday, settling at a midway point from a recent low of RM1.20 on Aug 28 and RM1.60 in mid-September.

Source: TheStar.com.my