KUALA LUMPUR, APRIL 11: Eco World International Bhd plans a residential project in Melbourne, Australia with a gross development value (GDV) of A$218 million (RM728.3 million) on Salcon Development (Australia) Pty Ltd’s (Salcon Australia) land, in which the former proposed to acquire an 80 per cent stake.
The project, on a 0.21 ha (2,128 sq metres) area in South Yarra, about 5.3km south-east of Melbourne’s central business district, would comprise a 27-storey tower with 268 residential units complemented by a retail and office podium, it said in a statement here, today.
Eco World is acquiring the 80 stake in Salcon Australia via its unit, Fortune Quest Group Ltd, for A$120,000 (RM400,896) from Salcon Development Sdn Bhd (SDSB), which in turn is a unit of Salcon Bhd.
Eco World’s existing four projects involve the development of close to 3,200 units of apartments with a total GDV of RM12.96 billion.
As at Jan 31, 2017, the Eco World group has recorded sales of RM6.49 billion which is about 50% of its total GDV.
The proposed acquisition, therefore, enables Eco World to increase its development pipeline and break into a new target market by extending its geographic footprint, thus broadening its product range to cater to a wider customer base.
“This is consistent with the Eco World group’s strategy to seek good opportunities in mature international markets for growth, in line with its ambitions to become a prominent global property player,” it said.
Salcon Bhd in a filing to Bursa Malaysia said the proposed disposal was intended to create an 80:20 shareholding structure between Fortune Quest and SDSB, respectively, as Salcon Australia shareholders.
“The proposed disposal will allow Salcon to unlock the value of its investment in Salcon Australia and provide greater financial strength and flexibility to Salcon’s group of companies to pursue future potential acquisitions and/or investment opportunities,” it said.
Eco World is an international property developer that focuses on developing real estate assets into high-quality residential-led, mixed-use developments in mature markets with growth potential and favourable macroeconomic conditions such as the United Kingdom and Australia.
Currently, Eco World’s group of companies has four ongoing property development projects, of which three are in London, United Kingdom and one in Sydney, Australia.