Reported in a local English daily is another exciting project by Tan Sri Liew Kee Sin. No, this is not as big as the Battersea but RM11.9 Billion is indeed still huge by any standard. In fact this may even be higher two years later. This is Eco World Investment Co Ltd, owned by both Tan Sri and Datuk Voon Tin Yow and it is buying a 75% stake in a developer of three large-scale residential projects in London. The estimated gross development value (GDV) is £2.2bil (RM11.9bil). The developer is UK-based Ballymore Group. With this purchase, both would be developing these three parcels together. Total units would be 2,500 and they said this wil be developed to satisfy the current strong demand for housing in the growing east and south London regions.
Total sum to be paid for the stake would be RM2.3 billion. This stake is already close to 20% of the total GDV. While this is not high when compared to Singapore or Hong Kong but when compared to the usual land costs in Malaysia, this is considered on the high side. Of course, this represents a good deal for Eco World because first of all, the development is in London. This has raised Eco World’s profile another notch because all these while only the really big developers would venture out of Malaysia. Secondly, whatever profit gained would be in a currency which is 5 times higher. Thus, even if the percentage is lower, the total profits are five times larger.
The estimated GDV for the three different sites are as follows: London City Island at £614mil (RM3.3bil), Arrowhead Quay at £591mil (RM3.2bil) and Embassy Gardens at £995mil (RM5.4bil). All three projects are due to be launched within this year. Very fast, as usual when we are looking at an efficient developer. Waiting equals to holding costs, thus the faster the better. Nothing else were mentioned, thus we would just have to wait for the next announcement. Would Eco World be opening this to Malaysians first? This is the reason why I asked: Londoners, homeless. Malaysian caused?
Personally I think this may be the project which will keep Eco World’s owner very busy. What about Battersea then? Haha. I think Battersea is already safe enough to spend less time and effort in the near future? Just in time for the start of this new Malaysia-London connected new project. Buying for your daughters and sons who are looking to study in London? Buying one just based on Tan Sri Liew Kee Sin’s ‘brand’? I think many would. Happy investing in one.
written on 13 Jan 2015
Next suggested article: Battersea by SP Setia and co, dismantling work has started
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