SUBANG JAYA: Property developer EcoFirst Consolidated Bhd is expected to post better earnings in the financial year ending May 31, 2016 (FY16), driven by its Ipoh condominium project and new launches in Ulu Klang.

EcoFirst group chief executive officer Datuk Tiong Kwing Hee said the main contributor to the company’s revenue in FY16 would be the Upper East @ Tiger Lane, a high-end condominium project in Ipoh, which has a gross development value (GDV) of RM300 million. 

The take-up rate of the project is at 80% and Tiong expects it would reach 90% by the end of FY16.

Commenting on the land acquisition measuring 62 acres (25.1ha) in Ulu Klang, Tiong said the purchase is expected to be completed by year end. “We can launch the first phase by then,” he told reporters at the extraordinary general meeting (EGM) yesterday.

To recap, EcoFirst (fundamental: 0.1, valuation: 1.1) is buying the tract from Zurich Insurance Malaysia Bhd for RM145 million. The deal is delayed by technical issues on land alignment.

Tiong added that the first phase of the project will have a GDV of RM422 million, mainly comprising commercial and retail components. 

The whole mixed-development project will have a GDV of more than RM1 billion.

Besides, EcoFirst also owns and operates two commercial-retail malls — South City Plaza in Seri Kembangan and 1 Segamat Mall in Johor. Both shopping complexes contributed about 25% to the total revenue in FY15.

Meanwhile, the shareholders yesterday approved the proposed acquisition of a 25-acre piece of land from Harta Villa Sdn Bhd, a wholly-owned subsidiary of Tan & Tan Developments Bhd, for RM62.8 million in cash and the proposed mandate for recurrent related-party transactions at the EGM.

With the latest land acquisition, which is also in Ulu Klang, Tiong said the company’s land bank would expand to 87 acres. He said the company has yet to finalise when the development is to take place.

This article first appeared in digitaledge Daily, on September 4, 2015.