Eco World Kicks Off Eco Marina Project In Penang

Eco World Development Group is planning to expand to Penang with the proposed project named “Eco Marina” on the Batu Kawan island off Seberang Prai, Penang in the “Batu Cassia” area. It has received a letter of award from the Penang Development Corporation regarding the project in the middle of April 2015. According to the details shared with the Bursa Malaysia, Eco World will buy nearly 300 acres of land for this project under a 99 year lease for RM730.93 million. Additionally, it will also lease another 150 acres of land (for 30 years) to develop a golf course and a clubhouse for some RM65 million.

Is Eco World Overpaying?

Some industry figures that we spoke to told us that Eco World might be overpaying for this land, but in our opinion they might be missing the point – it’s a savvy developer’s game to look to the future to look for upsides. This may well mean that prices of the properties will need to be set at the top range, but this is really part and parcel of the game. (Note: in terms of PSF, Eco World will be paying RM56 PSF while the past transacted prices were at about the RM30 PSF range).

Additionally, IKEA has bought some 245 acres of land on the Batu Kawan island for the development of its flagship store up north, and there’s also another integrated development township (6,400 acres!) of Bandar Cassia as announced by PDC in 2014. This area will set to boom!

Eco Marina sits on a tract of land (470 acres) which is Eco World’s third in Penang: the other two are Eco Meadows (also on Seberang Prai) and Eco Terraces (on the Penang island). Eco Meadows is an integrated project with a gross development value of more than RM900 million while Eco Terraces is a smaller project at RM340 million, consisting of landed houses, condominiums and a clubhouse. The latter is situated near Air Itam on the Penang island.

Here’s what we think: Eco World is not dubbed as “SP Setia 2.0″ for no reason. Watch their next move closely; I know I will.

About Khai Yin

When I am not writing for GoodPlace.my and helping my readers find properties though the DealMatcher service, I spend time doting on my three kids: Wenyi, Qinyi and Eian. My personal stuff, some published essays and contact details can be found at khaiyin.com

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