Thursday 28 Mar 2024
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GEORGE TOWN (Sept 22): Eco World Development Group Bhd has received a six-month extension to obtain the planning permission, until March 26 next year, from the Penang Development Corp (PDC) for its proposed RM10 billion Eco Marina Development project in Bandar Cassia, Batu Kawan, in Seberang Perai Selatan, Penang.

In a filing with Bursa Malaysia, EcoWorld said the extension was pursuant to the expiry of the six-month period — from the letter of award (LoA) — to obtain the planning permission (planning permission period) and its shareholder’s approval (shareholder approval period) at an extraordinary general meeting, pursuant to the proposed Eco Marina Development on Sept 26.

But under the LoA, the planning permission period may be extended for a further six months, while the shareholder approval period may be extended for another three months, both subject to the PDC’s consent.

“Pursuant thereto, the PDC has, vide its letter dated Sept 17 (received on Sept 22), agreed to extend the planning permission period for six months until March 26, 2016, and the shareholder approval period for a period of three months until Dec 26 this year,” EcoWorld said.

In April this year, EcoWorld announced it has received the LoA from the PDC for the proposed 470-acre Eco Marina mixed development in Batu Kawan, including an 18-hole golf course.

Under the LoA, EcoWorld will acquire about 299.64 acres of 99-year leasehold land for the development of residential and commercial properties at RM730.93 million.

Besides that, it will lease about 150 acres of land for 30 years for RM65.34 million, with an option for renewal for a further 30 years. The land will be used for the development of an international standard golf course and a club house.

The proposed project’s gross development value was estimated at RM10 billion over a development period of 10 years, with the construction works for the mixed development and the golf course expected to commence within six months and three months respectively from receipt of the vacant possession of the land.

The stock fell four sen or 2.6% to close at RM1.50 for a market capitalisation of RM3.64 billion.

(Note: The Edge Research’s fundamental score reflects a company’s profitability and balance sheet strength, calculated based on historical numbers. The valuation score determines if a stock is attractively valued or not, also based on historical numbers. A score of 3 suggests strong fundamentals and attractive valuations.)

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