Thursday, 26 September 2013

Eco World & Liew Take Center Stage

Recently we can see Eco World's advertisement all over the place, billboards, radio, newspapers etc. Eco World might be a new comer in the property development scene, but they come with vast experience in this field and they will be aggressive in the market.

Eco World's CEO Dato Chang Khim Wah, directors Dato Leong Kok Wah & Tan Sri Abdul Rashid all jumped ship from SP Setia. Another young director Liew Tian Xiong is the son of current SP Setia's CEO Dato Seri Liew Kee Sin.

Recently on 17th September 2013, Eco World and one of its director Liew Tian Xiong has entered into a conditional share sale agreement with multiple shareholders of main board listed property developer Focal Aims, to acquire 164,775,701 shares (65.05%) of Focal Aims for a total cash of RM230.7mil (RM1.40 per share).

If this acquisition go through, Eco World as a new major shareholder has to make a mandatory offer of RM1.40 to other shareholders in Focal Aims.

Focal Aims net asset per share stands at RM1.26 from its latest financial period ended 30th June 2013. Its share was traded between 60-70sen before the news broke out. Now it has reached over RM2.

Liew Kee Sin's time in SP Setia is going to end soon, and it is not hard to predict where he will land next.

Eco World just launched its maiden project EcoBotanic in Nusajaya, Iskandar Malaysia. Its initial launch include 624 units of cluster & semi-D houses which are priced at RM900k - RM1.3mil & RM1.8 - RM2mil respectively. They are all luxury things and do not come cheap. Nonetheless, it was reported that those 500 units allocated to non-bumi were snapped up in 6 hours. 

EcoBotanic covers a 118.8ha site and has a GDV of RM3 bil which will be developed over 8 years.

       EcoBotanic: Next to industrial park & highway? Who cares?

       EcoBotanic: Power lines in the vicinity? Who cares?

You think it is a not so "eco" EcoBotanic? Who cares? It has SP Setia's DNA. Yes, this is what people care nowadays.

       Location of EcoBotanic within Iskandar Malaysia

Other projects that queue up at Eco World include the RM1.2bil EcoSky in Taman Wahyu KL and a new 246ha township in Tebrau Johor. EcoSky is expected to be launched in the final quarter of 2013 while development at Tebrau should start in 2nd quarter of 2014.

Eco World says that it has a total of 3,000 acres landbank located at Johor (1913 acres), Klang valley (1080 acres) & Penang (60 acres) with a total GDV of RM30 billion. Recently it works with Salcon to develop a RM1.2 billion mixed commercial project JB Festival Mall & Serviced Apartments in Johor Bahru. Salcon's executive director Leong Kok Wah is also Eco World's director.

Tropicana has about 2,300 acres of landbank including the recently purchased Pulai land. This means that Eco World has more landbank than Tropicana.

However, it is reported that Tropicana's total GDV stands at RM70 billion (excluding Pulai land). Wow! Can you believe it?

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