KUALA LUMPUR: Eco World International Bhd
(EcoWorld International) achieved sales of RM685mil in the primary quarter ended Jan 31, 2022, 68% higher than the sales recorded in the identical interval a 12 months in the past.
The developer additionally has a powerful reservation pipeline of RM393mil – complete sales together with reserves as at Feb 28 provides as much as a complete of RM1.077bil.
It mentioned Embassy Gardens and London City Island have been the largest contributors to sales, producing
RM240mil and RM229mil sales respectively based mostly on contracts exchanged.
“EcoWorld International had a good start to FY22 as the attractive incentive packages being offered to customers led to a resurgence in buying interest, particularly for our London City Island and Embassy Gardens projects.
“Local demand in Australia has also been recovering steadily which contributed to the RM685mil sales secured in the first four months of this financial year,” president and CEO Datuk Teow Leong Seng mentioned in the assertion.
In the primary quarter to Jan 31, 2022, EcoWorld International posted a internet lack of RM14.66mil on income of RM49.24mil.
The gross and internet gearing ranges of the group stay low at 0.29 occasions and 0.21 occasions respectively as borrowings have been considerably pared down following the completion of main initiatives in London, Sydney and Melbourne, it mentioned.
Teow mentioned its initiatives in Australia are totally accomplished and its main initiatives in London below the EcoWorld-Ballymore three way partnership are very near attaining full completion.
“The impact of an inflationary environment could therefore favour us as our selling prices stand to benefit from rising property prices while our costs on the completed and near-completed projects are largely shielded from inflationary pressure,” he mentioned.
“We do however acknowledge the uncertain market environment caused by rising geopolitical tensions – against such a backdrop the strategic decision we made at the end of 2021 to accelerate cash recoupment via the sale of our completed units, remains very sound,” Teow mentioned.
He added that it continued to see good curiosity from traders, each institutional and retail, for its initiatives in each the UK and Australia.
“This includes several large offers which we are currently assessing. Should we decide to proceed with these offers, our plans to repatriate the capital which we have invested in our completed projects could be accelerated,” he mentioned.
Teow mentioned that it remained the Board’s intention to promote the remaining models in the EcoWorld-Ballymore and Australian initiatives in the subsequent two to 3 years with a key objective of creating additional distributions to shareholders after setting apart a portion of the capital recouped from these accomplished initiatives to be reinvested for future progress.
