Eco World’s BBCC on track for year-end launch

SHAH ALAM: Eco World Development Group Bhd, whose shareholders approved the joint development of the RM8.7 billion Bukit Bintang City Centre (BBCC) project yesterday, is on track to launch the project by year-end, said its president and CEO Datuk Chang Khim Wah.
“The development order has been approved, so no problem there. Now we are doing the pre-planning for our launching and marketing. We are getting ready for the launch. Construction will start in the first quarter of next year,” he told reporters at its EGM yesterday.
BBCC is a mixed development project comprising a mall, entertainment block, strata offices, office tower, two hotels, serviced residences and serviced apartments. The project will be built on 19.4 acres at the former Pudu Jail site and will take eight to 10 years to complete.
BBCC Development Sdn Bhd is a special purpose vehicle (SPV) set up to facilitate the project. Eco World holds a 40% stake in the SPV, while UDA Holdings Bhd and the Employees Provident Fund (EPF) hold 40% and 20% stakes respectively.
The development order for BBCC was obtained on July 3, and the gross development value was revised upwards to RM8.7 billion from RM8 billion previously.
Earlier this year, it was reported that Chinese investors were interested to purchase the strata offices en bloc. However, Chang declined to comment on any investor interest.
He also declined to comment on potential partners for the project, except to say that negotiations with Mitsui Fudosan (Asia) Pte Ltd and Zepp Hall Network Inc are going well.
BBCC Development had earlier signed two separate memorandums of understanding with Mitsui Fudosan and Zepp to explore collaboration opportunities for the mall and entertainment block respectively.
“There are also a lot of retailers coming to see us. Many things are going on. Wait for us to get the first package out for launch and we will give you all the details,” he added.
He said it is confident with the project as it will bring a different value to the market and add a “different dimension” to the Golden Triangle.
On its sales target, Chang said it is on track to achieve its RM3 billion sales target for the financial year ending Oct 31, 2015, which will be driven by its township projects that are attracting first time home buyers and upgraders.
“Due to the number of projects we are doing in townships, we have the flexibility to have a broader marketing spectrum of products. We are selling landed properties, terrace housing, we are also selling semidees (semi-detached houses) and villas.
“We have a wide range of products and we have shops and offices. With that, whatever challenges thrown to us this year and next year, we are quite confident that the sales target will be met and we have the business plan to see us through,” he said.
He said the group’s construction cost has not been affected by the weak ringgit as most of its construction materials are sourced locally.
“Traditionally, every year there is some increase in construction cost but luckily most of our materials are actually bought in Malaysia, ” he added.
Yesterday, Eco World shareholders approved the subscription of 1,999,988 new ordinary shares of RM1 each in BBCC Development representing 40% of the enlarged issued and paid-up share capital of the SPV.
Shareholders also approved the joint development of the BBCC project and the provision of financial assistance to the SPV at the EGM yesterday.