I love Malaysian developers who are able to exert their presence on the world stage. Of course, these developers should make sure they are already doing well domestically first. 🙂 Let’s look at one recent news about Eco World International (EWI). It will delay its initial public offering in Malaysia from mid 2016 to September or October. This delay is to facilitate the entry of an undisclosed strategic investor to co-anchor the IPO, its Chief Executive said. EWI’s IPO is expected be Malaysia’s largest IPO in more than a year as per its draft prospectus.
EWI develops properties in the United Kingdom and Australia and due to the recent reference, the volatility has increased. Its vice chairman Tan Sri Liew Kee Sin offers this with regards to the referendum, “Now that the sterling has dropped, it means that the cost we have to inject into the U.K. to pay for the development of our three projects there will be lower.” EWI has already sold 581.1 million pound sterling (RM3 billion) in sales as of April 2016 from its three projects within London. He added further that a weaker sterling would in fact help Malaysian, Singaporean, China and HongKong customers as their cost of investment will now be lower.
Moving forward, EWI expects to handover London City Island property to clients in 2018, Embassy Gardens in 2019 and Wardian London in 2020 (refer to image). As per the U.K. accounting rules, profits from development projects could only be booked upon handover. For those who may not be able to buy London properties and even those who are now wary whether or not to buy, we can still try to be exposed by buying listed companies with development projects there. On a more serious note, the current volatility has mostly been due to uncertainty. No negotiation has started yet for the U.K to exit EU and we have not yet see any real effects economically. Happy waiting.
written on 9 July 2016
Next suggested article: Eco world in Penang? RM875.24 million land forEcoHorizon and EcoSun
