Eco World to buy 80% of landowner for Melbourne project

PETALING JAYA: Eco World International Bhd (EWI) proposes to acquire an 80% stake in Salcon Development (Australia) Pty Ltd for A$120,000 (RM400,896), which paves the way for the property developer to embark on a project with a gross development value (GDV) of A$218 million (RM728.3 million).
EWI’s wholly-owned subsidiary, Fortune Quest, has entered into a conditional share sale and purchase agreement with Salcon Development Sdn Bhd, a wholly-owned subsidiary of Salcon Bhd, for the acquisition, which will be funded through its initial public offering which was completed on April 3.
Salcon Australia owns a 2,128 sq m parcel of prime land in South Yarra, about 5.3km southeast of Melbourne’s central business district.
The project, dubbed “Yarra One”, will comprise a 27-storey tower with 268 residential units complemented by a retail and office podium. It is targeted to be launched in the second quarter of 2017 and be completed over the next three to four years.
Meanwhile, Salcon said in a separate filing that the disposal will allow it to unlock the value of its investment in Salcon Australia and provide greater financial strength and flexibility to the group to pursue future potential acquisitions and/or investment opportunities.
“As the Salcon group is new in the property development industry in Australia, the proposed disposal was entered into to tap the reputation, strength and experience of EWI group in the international property market, which is led by an experienced management team,” it said.