SINGAPORE (April 3): SGX-listed property group GuocoLand Ltd has marked its expansion into the UK and Australia via its joint-venture company, Eco World International (EWI).
EWI currently has four development projects under construction in London and Sydney, with an estimated total gross development value of approximately £2.4 billion (RM13.3 billion).
As at Jan 31, 2017, the total contracted sales from EWI’s four projects are approximately £1.2 billion.
EWI made its trading debut on Bursa Malaysia on Monday, opening at RM1.31 – some 11 sen higher than its retail offer price of RM1.20.
In a media statement, GuocoLand says this marks “the beginning of a strategic partnership” with Eco World Development Group Bhd (ECB), a leading Bursa-listed property developer.
GuocoLand and ECB are the two largest shareholders in EWI, with each holding an equal 27.0% stake.
At the price of RM1.20 per IPO share, EWI’s IPO was the largest in Malaysia since June 2015. GuocoLand’s investment in EWI amounted to RM777.6 million (S$246 million).
The retail offering to the Malaysian public was oversubscribed by 8.87 times.
“Our strategic partnership with EWB in EWI represents concrete progress on our venture into the UK and Australia, to grow our business beyond Asia,” says GuocoLand Group President and CEO, Raymond Choong.
“With the joint support of GuocoLand and EWB, EWI will be better positioned to grow its business in the two large and exciting markets,” Choong adds.
As at 11.24am, shares of GuocoLand are trading flat at S$1.85. — theedgemarkets.com.sg