Chang said the new development is in line with EcoWorld’s plan to introduce a new range of homes priced from RM300,000 to RM450,000.

KUALA LUMPUR: Melia Spring Sdn Bhd, a subsidiary of EcoWorld Development Group Bhd (EcoWorld), has signed a deal with Permodalan Darul Ta’zim Sdn Bhd for the development of homes on 200 acres of freehold land in Iskandar Puteri.

The rights to develop the land was given for a total consideration of RM20mil plus a 20% share of the profit after tax from the proposed development. A further amount of RM304,920,000 is to be paid to the landowner, River Retreat Sdn Bhd to acquire the land. The amount is to be paid on a staggered basis with interest over the development tenure of the land. The estimated gross development value of the land is at RM1.67bil.

Targeting the M40 group, the houses will be situated next to the township of Eco Botanic and within minutes drive from EduCity, Legoland, Puteri Harbour and other amenities. 

EcoWorld CEO Datuk Chang Khim Wah said, “This acquisition truly comes at an opportune time as it has been more than six years since we acquired any land in Iskandar Malaysia. During this time, we have launched four townships, Eco Botanic, Eco Spring, Eco Summer and Eco Tropics as well as three business parks, Eco Business Parks I, II and III.”

According to him, all EcoWorld’s projects have performed well as evidenced by the RM6.3bil cumulative sales recorded during the financial year 2014 to 2019 for the projects in Iskandar Malaysia alone. Total sales achieved for Eco Botanic since its launch six years earlier is RM1.85bil.

“The rapid development of Eco Botanic has left us with only 100 acres of remaining undeveloped land. As such, the acquisition of the land today makes perfect sense. The collaborative structure of the transaction plus the fact that we have already invested substantially to build our brand and market presence here, gives us great flexibility to create an optimal mix for the new development to serve the housing needs of the M40.” said Chang.

“We intend to leverage on these advantages to launch products suited to first-time homeowners and the M40 target group. This will complement the luxury offerings of our existing Eco Botanic township and broaden the market segment we are able to serve in this important growth corridor.

“It is also in line with EcoWorld’s own plans to introduce a new range of homes priced from RM300,000 to RM450,000 to take advantage of the infrastructure and lifestyle amenities we have put in place at our existing projects such as Eco Botanic,” Chang added.

By undertaking the new development, the organisation is able to extend the life of Eco Botanic. Residents of the new project will also be able to enjoy the recreational and lifestyle amenities created at Eco Botanic as well as contribute to the commercial vibrancy of Eco Botanic City.

“This will greatly increase the value of the properties in this locality, both residential and commercial, going forward,” he said.

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. 

Furthermore, the presence of comprehensive existing amenities and completed infrastructure at Eco Botanic reduces the incremental cost to develop the land, improving the project’s overall viability.