KUALA LUMPUR: Eco World International Bhd
(EcoWorld International) is on track to attain its sales target of RM2bil for the monetary yr ending Oct 31, 2022 (FY22).
“Total sales plus reserves as at May 31, 2022 (7 months) adds up to RM1.533bil which is 52% more than RM1.012bil recorded in the same period of FY21,” the developer stated in a press release.
It added that the Embassy Gardens and London City Island continued to be the most important contributors to sales and reservations, producing RM549mil and RM304mil respectively.
EW-Ballymore, the group’s first joint-venture within the United Kingdom, has totally paid down its financial institution loans in April 2022 and was in a position to start its maiden compensation of shareholder loans to EcoWorld International in May 2022.
EW-Ballymore at the moment has about £400mil price of accomplished properties that are readily monetisable for additional distributions to EcoWorld International.
“Given the present market conditions and that EW-Ballymore projects are at the tail-end of completion, the board has taken a prudent stand to recognise an impairment of RM36mil on its investment in the EW-Ballymore portfolio based on current estimated selling prices for the remaining completed stock,” EcoWorld International stated.
President & CEO Datuk Teow Leong Seng stated the robust begin it skilled in 1Q22 has continued into 2222 with complete sales and reserves of RM1.533bil recorded as at May 31.
“Our London City Island and Embassy Gardens projects continue to lead sales performance and we have also seen a good uptick in demand for our Australian projects in 2Q22,” he stated.
Teow added that its monetisation technique has progressed effectively, enabling us to repay all of the venture improvement loans for our Australian tasks in addition to all of the financial institution borrowings of its EW-Ballymore joint-venture.
“At the group level we have also begun receiving some repayment of our shareholders’ advances from EW-Ballymore,” he stated.
“However, despite the resurgence in demand we have seen over the last seven months, selling prices for properties have not increased at quite the same pace as yet. This is because market sentiment continues to be weighed down by inflationary concerns and rising interest rates, compounded by geopolitical tensions caused by the ongoing conflict between Russia and Ukraine.
“Interestingly though, rents in London have been going up particularly at our EW-Ballymore projects due to their prime location, transport accessibility and excellent liveability. Such rental growth augurs well for an eventual price recovery which should help us to achieve better overall returns from the sale of our completed properties for the benefit of our shareholders,” he added.
In the second quarter ended April 30 (2Q22), EcoWorld International posted a internet lack of RM67.35mil towards a internet revenue of RM11.3mil in the identical interval a yr prior.
Its income in 2Q22 fell to RM33.07mil from RM107.55mil a yr earlier.
In the primary six months to April 30, it posted a internet lack of RM82.01mil from a internet revenue of RM67.34mil final yr whereas income stood at RM82.32mil towards RM410.83mil a yr in the past.
EcoWorld International stated the gross and internet gearing ranges of the group remained low at 0.30 instances and 0.23 instances respectively.
The group’s plans to monetise its accomplished shares within the United Kingdom and Australia is predicted to generate substantial money reserves and it’ll try to speed up sales with a view in the direction of attaining improved total returns to shareholders.
It added {that a} portion of the funds generated from the sales of its accomplished shares will probably be earmarked for reinvestment, with the steadiness to be repatriated to Malaysia for a deliberate distribution to shareholders throughout the subsequent 1-2 years.
