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Eco World eyes Batu Kawan land for RM6bil project

June 20th, 2016 Leave a comment

eco worldEco World Development Group Bhd is said to be eyeing a 300-acre leasehold site in Batu Kawan for a RM6bil mixed development project to be launched next year.

Sources told StarBiz that the group could fork out up to RM700mil for the property, estimated at over RM50 per sq ft (psf) to Batu Kawan Development Sdn Bhd (formerly Abad Naluri).

It is learnt that the deal, which has been in negotiations since last year, is likely to be inked soon.

That same piece of land was of interest to Malton Bhd a few years ago. It was supposed to develop it on a joint-venture basis. In 2012, Batu Kawan Development inked a deal with Silver Setup Sdn Bhd (SSSB), Malton’s indirect subsidiary, to develop a RM3.8bil township on that 300 acres.

The agreement allowed SSSB to fund the project and hold a 82% stake of the GDV, while Batu Kawan Holdings was entitled to 18% of the GDV, subject to no less than RM300mil.

However, there has been no update on the development which was supposed to start in 2014.

According to Malton’s 2015 annual report, no significant property development work has been undertaken by SSSB as at June 30 last year.

As for Eco World forking out more than RM50 psf for it, local property players in Seberang Prai consider it “fair”, although it is more than the RM45 psf big property deals done in Batu Kawan two years ago.

If the acquisition is completed, the development will be a major project for Eco World in Penang next year. It is likely to be a mixed development scheme comprising largely landed properties (70%) and commercial units (30%).

The group is planning for sizeable landed properties with competitive pricing.

It is learnt that Eco World will also be re-submitting its tender to state-owned Penang Development Corp (PDC) for the 450-acre leasehold land in Batu Kawan for RM790.93mil.

Last week, Eco World announced that it was rescinding the letter of award for the proposed RM10bil Eco Marina mixed development project on the 450-acre parcel as the proposed scheme requires a larger acreage for the 18-hole golf course, thus adversely impacting the viability of Eco Marina.

In the new tender to be called by PDC, there will be fresh conditions for bidders to acquire more land in Batu Kawan from the state government so that they could build the 18-hole golf course.

Eco World is well positioned to win the tender as it has already in hand a completed feasibility report to develop the site, which the group had earlier prepared for the previous tender.

In Seberang Prai, Eco World is involved in the development of EcoMeadows (GDV RM918mil), a 60-acre gated-and-guarded strata development in Simpang Ampat.

Eco World expects its projects in Penang to generate about RM300mil this financial year ending Oct 31, 2016, compared to RM200mil the previous year.

Previously, Eco World general manager Khoo Teck Chong had said that the targeted revenue for the 2016 financial year is RM4bil, compared to RM3bil in 2015.

The contribution from Penang would come from Eco Terraces in Paya Terubong, which is 40% sold, the remaining units of Eco Meadows first phase, and Eco Bloom, which are scheduled to be launched in August.

Eco Terraces and Eco Bloom are priced respectively at over RM850,000 and below RM400,000.

Source: TheStar.com.my

Categories: Property News Tags:
  1. hehe
    June 20th, 2016 at 18:21 | #1

    last week cancel batu kawan hill project…ths time acquire land think is just in front of aspen vision city to compete them…looks like ecoworld really wanna setup thier flagship in batu kawan…

  2. JoJo
    June 21st, 2016 at 08:44 | #2

    This time around it is hard to move condo at 400k for this area

  3. Abd
    June 21st, 2016 at 08:54 | #3

    @JoJo

    This is a multi-billion township, EcoWorld is not worried about selling 400k condos “now, today”. They look at 15-20 years. The reality is, with the coming of Batu kawan, island properties can be allowed to appreciate more in price (in other words, sell more to foreigners). So, the state can worry less about affordability for regular families as they can stay in Batu Kawan, while imposing less control on property prices on the island. It’s a win-win.

  4. John
    June 21st, 2016 at 09:23 | #4

    Land status is leasehold…..sigh…

  5. Kuai ku kia
    June 21st, 2016 at 14:48 | #5

    R u sure condo can priced at RM400k at leasehold land? Landed property may be…..

  6. edisongan
    June 21st, 2016 at 15:05 | #6

    Well…If BK is meant for upcoming super star among all new towns, then everything is possible..
    Just like 15 years ago when people came tell you that Juru is going to be new shining star and nobody would believe in it..Atleast me not into it because I was working part time at that area at that point of time..Found it too many heavy vehicles and too quiet after working hours…

    Now, look at Juru Autocity and Icon City…Upcoming is Exo City..The DST original was sold at RM250K at Bayu Mutiara…Now RM700K and some even hit higher..

    So, don’t make absolute comments, nothing is absolute..If that BK really stood out after so many famous developers make it happen, then it could be even better for living and shopping with nicer, newer and better organized than BW & BM..

    Let’s judge it objectively and see how it goes then..

  7. edisongan
    June 21st, 2016 at 15:33 | #7

    I was referring to bigger unit one at Bayu Mutiara…Not the small unit around 1400sqf one..Small unit of DST also need RM500K liao at that area now..

    Don’t later come and challenge me on misleading..haha..If don’t remember wrongly, it’s nearly 2000sqf+..The unit I went view 2 years ago…

    So, for those who purchased as early bird at RM 250k becomes RM 700K = ROI = 280%….So if we could foresee…Already super hosey liao..

  8. mariam
    June 21st, 2016 at 15:36 | #8

    @edisongan

    well said. mainland property can also triple within 10 years. better return than Straits Quay landed.

  9. edisongan
    June 21st, 2016 at 18:22 | #9

    @mariam
    Ai yo…I didn’t compare to anywhere..I was just saying if we could foretell,then we all could make fortune already..Juru was really an exceptional case..BK now seems to be being promoted by many developers as well as government after the 2nd bridge…

    Other areas of BM did not appreciate that much…guess second biggest appreciation in BM was Alma area..also out of sudden one…

    So, if BK really becomes the heart of South Seberang Prai, I do not see why it cannot emulate BM and BW…

  10. Kuai ku kia
    June 21st, 2016 at 20:02 | #10

    Aspen is selling condo at BK for only RM400K on freehold land. Do u think leasehold project can compete?

  11. edisongan
    June 21st, 2016 at 21:58 | #11

    @Kuai ku kia
    I do agree that it is not cheap but if this is expensive, shall let the buyers judge themselves since I’m not gonna go for it..

    Developer (Eco World) is smart developer N will have analysts help advise if this is sellable in the market…Like my friend who works as marketing manager in a developer firm says :”We will never be able to foresee or predict the 100% right situation of market,else we would have been super rich…be it market ramp up or downfall..

    Not arguing with you but we shall keep an open minded and see how it goes..Did you go to sales office to check out why it is selling so high?

    Perhaps next month I shall make a trip down to check out…

  12. Kuai ku kia
    June 22nd, 2016 at 09:59 | #12

    I hv called up, they will build landed property only.

  13. edisongan
    June 22nd, 2016 at 10:08 | #13

    @Kuai ku kia
    You were talking about Eco Meadow I believe..Oh..Then it’s really weird for landed property with lease hold…

    Abit confusing of their project..

    Eco Bloom @ Eco Meadow one got high rise condos..It shows below information I suppose they are high rise condos, right?

    Project Name : Eco Bloom @ Eco Meadows
    Location : Simpang Ampat, Penang
    Property Type : Mixed development
    Built-up Area: 800 sq.ft. – 1,100 sq.ft.
    Total Units: 490 (residential)
    Land Tenure: Freehold
    Indicative Price : (to be confirmed)
    Developer : EcoWorld
    Contact No: : 04-510 2255

  14. Hello
    June 22nd, 2016 at 10:11 | #14

    hello Edison Gan,

    Eh, you came back from Shenzhen/HK already ah ? Not working anymore or what. Now, so free huh, give long comments everyday in forum. Wah, you are like previously Chocolate already whom is inactive now. Anyway, best wishes.

  15. Chocolate
    June 22nd, 2016 at 11:17 | #15

    Hello :
    hello Edison Gan,
    Eh, you came back from Shenzhen/HK already ah ? Not working anymore or what. Now, so free huh, give long comments everyday in forum. Wah, you are like previously Chocolate already whom is inactive now. Anyway, best wishes.

    I active meh last time?

    U know me meant u also active la..

  16. cay
    June 22nd, 2016 at 11:17 | #16

    Eco World can really pull in interest for that particular area, latest data shows that Paya Terubong rose 12.5% compare to other areas around 4~5%. If EW announce any developments in Batu Kawan, AVC and other area demands will shoot up rapidly

  17. edisongan
    June 22nd, 2016 at 12:31 | #17

    @Hello
    Still working la..no working you feed me meh..haha..
    Coz I’m thinking to buy another one as investment so lately have been actively reading and commenting loh..if can find one nice and potential one on mainland then more convenient..else will consider island one but wonder island properties already hit the cap mostly…

    Besides, I still cannot forget the Getha,haha…he was such a joker…

    Btw,Mr Hello…who are you?Have we exchanged comments here before?

  18. edisongan
    June 22nd, 2016 at 12:32 | #18

    Now smart phone world..can read and comment even when on the way to customer place, office or home…so no worries…still got job..else end up like Getha then Jialat Liao…won’t be as thick skinned as him loh…haha

  19. Ivan555
    June 22nd, 2016 at 12:46 | #19

    Getha. … lol xx xx xx

    Anyway in eco meadows have landed. Winton this got eco bloom. A mixed development condo.

  20. edisongan
    June 22nd, 2016 at 12:54 | #20

    @Ivan555
    The concern raised here is if ALL are lease hold…high rise and landed are lease hold abit weird…since prices are already not cheap…developer is really so confident huh..haha

  21. JoJo
    June 22nd, 2016 at 14:19 | #21

    Not yet the time for condo in this Area, Landed house will give better return to buyer, The non stop building of condo was indicated developer not willing to share their profit with property buyer.
    At this economy climate & gov policies to reduce the dosmetic debt ,developer should take care of your pocket, don’t just think about their own pocket, only win win strategy can keep market alive.

  22. Hello
    June 22nd, 2016 at 15:20 | #22

    BK a lot of PDC land. So, PDC land only allow lease hold, just like Seberang Jaya landed houses at Lorong or Jalan Tenggiri area.

    Developer not confident but merely test the market. Buy land first and keep in land bank as land can keep one or develop slowly or sell land to 3rd party later. Buy RM50 psf and then when building house time, selling RM300 -RM400 psf ma.

  23. Hello
    June 22nd, 2016 at 15:51 | #23

    @edisongan

    I m just your friendly neighbour. don’t worry, I m not Getha.

    I think you also hammer him very hard, very personal attack also. Refrain, my friend. Have mercy, my friend. He is also trying to earn a living from property though fanatic about island supremacy. Cheers, just a forum. Hope you don’t dream about Getha at night.

  24. edisongan
    June 22nd, 2016 at 16:47 | #24

    @Hello
    Haha…No worries mate, I never thought you were another Getha…Hahahaha..

    Aiyo..I was trying to have fun with him only….At first I really never thought he’s so so so egoistic…but very soon while all his replies were the same then I was already numbed and starting find him funny instead of really meant to personal attack him lah..If not refrained, should be a lot of vulgar language there already..Haha…Relax mate, he’s really all time joker to me now..Always make me laugh..

    But you don’t find him funny meh..Abit like addicted very jia lat till require some medication like that leh..Every topic to him also never bothered but only island good island best..hahaha…

    Especially the topic discussing about 3rd link which I really find it good with vision if our population continues to grow..Unless he could prove that Penang population is going to decline or white elephant..Haha..Imagine HK got 7.5 million population but the ratio of owing own vehicles is much lower than Penang already got 3 undersea tunnel from Kowloon to HK island..Can you imagine one day Penang has got 2.5 million population with 3 cars a family? Haha..

    Last but not least, I do admire you, bro..A standard and good quality one should refrain more and should not attack people…I have good lesson to learn from you, Abang, you cantik !! Kasih you 1000 LIKES..hehe

  25. CK
    June 22nd, 2016 at 20:56 | #25

    So gay….

  26. edisongan
    June 23rd, 2016 at 07:08 | #26

    @CK
    Hahaha….Mai ah ne lah…have fun here ok

  27. williamyl
    June 23rd, 2016 at 12:54 | #27

    @CK
    CK jealous need your 10000000 likes also hahaha

  28. Hello
    June 23rd, 2016 at 13:17 | #28

    @edisongan

    BTW, I m not the same Hello whom comment recently on BM City Mall.

  29. edisongan
    June 23rd, 2016 at 13:34 | #29

    @Hello
    Then you use create your own one lah..don’t use duplicated one..Maybe u should use “Handsome” instead of “Hello”, is that good suggestion? haha..

    Anyway, BM city mall already completed construction? Heard that the mall is going to be stunning..Hopefully it could be successful ..Then we could have more places to hang out and no need to cross the strait to island so frequently after that..Sunway also got mix development project..Exopuri also has Exo Residence…Butterworth area also has some mix development…Guess very soon we are going to have many new hotspots for hangout..

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