Malaysia’s Eco World International Bhd (EWI), that recently listed on Bursa Malaysia, on Monday announced that it will acquire 80 per cent stake in Australia’s Salcom Development for AUD 120,000 ($90,010) mainly to take part in a mixed development project in Melbourne, Australia.
Salcon Australia owns a parcel of prime land located in South Yarra near Melbourne’s central business district, which will be developed as Yarra One with a gross development value of $163.5 million (AUD 218 million), according to a filing by Eco World International at the stock exchange on Monday.
The development will comprise a 27-storey tower with 268 residential units complemented by a retail and office podium. Eco World Sydney development Pty Ltd, a wholly-owned subsidiary of EWI, will also be appointed as the development manager for the project thus generating a new fee-based income stream for the EWI group.
The Malaysian developer recently hit the local stock exchange in an IPO that raised about $586.2 million (MYR 2.6 billion). The company’s current portfolio of projects include London City Island, Embassy Gardens and 2 Wardian London in the United Kingdom and West Village in Parramatta, Sydney.
“Melbourne is a market which we are very familiar with and also a preferred investment destination for many of our Malaysian and regional customers. It was crowned the world’s most livable city for the sixth year running according to the Economist’s Global Livability Survey,”said Dato’ Teow Leong Seng, President and CEO of EWI, in a separate statement issued on Monday.
EWI’s existing four projects involve the development of close to 3,200 units of apartments with a total GDV of $2.92 billion (MYR12.96 billion). As at 31 January 2017, the EWI group recorded sales of $1.46 billion (MYR6.49 billion), which is approximately 50 per cent of its total GDV.