Eco World Development to Reach RM4billion Sales Target
Expecting an improvement in the property market, Eco World Development Group Bhd is optimistic of achieving its RM4 billion sales target for 2017.
"The key to achieving this include having the right product in strategic areas and being innovative, apart from enhancing infrastructure and amenities for home buyers" explained Eco World chief executive Datuk Chang Khim Wah at the company's EGM.
The property developer posted RM3.8 billion in sales during the financial year ended 31 October 2016. To date, it has unbilled sales of RM6 billion.
Chang said the group does not intend to acquire more landbank as its landbank currently stands at 8,052.7 acres, with a gross development value (GDV) of RM87.5 billion.
It has 5,500 acres of undeveloped landbank, with a future potential GDV of RM77.5 billion.
"If we want to acquire and replenish more of our landbank, the price and location have to be right. The land must be situated closer to highways for accessibility" noted Chang.
He added that the company is still on the lookout for opportunities, with plans to focus on growth areas it has a presence in, like Johor, the Klang Valley and Penang.
Chang also revealed that Eco World's gearing level is at a comfortable level.
"We are always mindful of our gearing level to sustain our balance sheet, and as a new developer, we aim to strengthen our position in the market. This explains why we are moving into more valued partnerships such as with the Employees Provident Fund that will allow us to expand without over-gearing ourselves" he said.