Eco World International optimistic of notching RM5 bln sales in FY20

Last update: 12/12/2019

KUALA LUMPUR, Dec 12 -- Eco World International Bhd is optimistic of achieving close to RM5 billion sales for the financial year ending Oct 31, 2020 (FY20), which is the balance of the RM6 billion sales set for two financial years beginning FY19.

President and chief executive officer Datuk Teow Leong Seng said the target would be mainly driven by the ongoing 11 projects in the United Kingdom (UK) with a total gross development value (GDV) of £5 billion and the recovery in the UK property market.

“We believe our properties in the UK are based on open market, which has gradually been recovering and we are confident the sales will do much better, especially in greater London whereby sales has grown by 67 per cent.

“The other part of the business is also supported by built-to-rent (BtR) segment, which is a big chunk of our business that comes in hundreds of millions of pounds,” he told a media briefing on the company's FY19 financial performance here, today.

For FY19, Teow said the company had recorded total sales of RM1.1 billion mainly derived from property sales in the UK.

Although the group’s sales rate for higher-end products in London was affected by the ongoing Brexit-related uncertainties, he said the property market in the UK had started to recover as reflected by the house price index of inner London which rose 2.6 per cent in September 2019.

“We are seeing (a recovery) for the upper end of London property market, our mid mainstream products continues to deliver strong performance as our BtR business is progressing well, with profit recognition having commenced on the two land parcels sold to Invesco Real Estate last year, and numerous enquires from other institutional investors,” he added.

Teow also expected the property market in the UK would progress well once greater clarity is obtained on the Brexit timeline.

Meanwhile, he said the property market sentiment in Australia (Sydney and Melbourne) continued to recover with improved activities and positive price growth over the last several months.

The group said the timing of the recovery could prove to be opportune for its planned launch of Macquarie Park which is scheduled in FY21.

“Apart from riding on the recovery of the general London, Sydney and Melbourne markets to secure more open market sales, we will continue to pursue sizeable BtR deals in the UK to achieve our sales target,” he said.