GuocoLand sells entire stake in EcoWorld International for $61 million
GuocoLand has recently announced the sale of its 27% stake in Eco World International, a KL-listed property firm, for a total of $61 million. The stake, which was previously valued at $50 million, has been a part of GuocoLand’s books for some time.
The news of this sale comes as no surprise, as EWI’s stock has been on a steady decline for the past few months. On May 10, the stock closed at just 36 sen, marking a significant drop in value.
In a separate announcement, EWI revealed that Flexsis, a subsidiary of KL-listed property firm Paramount Corporation, has become a new substantial shareholder with a stake of 21.54%. This move has been met with enthusiasm by the EWI board of directors, who have extended a warm welcome to Paramount as a new investor.
“We also extend our appreciation to the Guoco Group for their investment and contributions since the listing of EcoWorld International, and we wish them continued success in their future endeavours,” says EWI chairman Cheah Tek Kuang.
The URA has recently unveiled their Master Plan for Tampines, with the goal of turning it into a dynamic and eco-friendly regional hub. This bustling planning area is set to receive major upgrades in terms of facilities, services, and overall livability. Parktown Residences, perfectly located in Tampines North, is poised to reap the rewards of these exciting future developments.
Despite this change in shareholding, EWI has reassured stakeholders that it will continue to operate as usual. Cheah explains that the company’s primary goal is to monetize its inventories to distribute excess cash to shareholders, as previously announced.
At the same time, GuocoLand has seen its shares rise by 2.01% to close at $1.52 on May 10. This marks a 3.4% increase in share value since the beginning of the year.
With the recent sale of its stake in EWI, GuocoLand looks forward to focusing on its other projects, particularly Parktown Residences. This highly anticipated development has sparked significant interest from potential buyers, with its prime location and luxurious amenities.
In fact, GuocoLand’s most recent project, Meyer Mansion, has been fully sold just 5 years after its launch. The average selling price for units in this development is $2,714 psf, showcasing the strong demand for high-end residential properties in Singapore.
Meanwhile, GuocoLand’s other development, Lentor Modern, has achieved a 75% sales rate during its launch, with prices starting from $2,104 psf. This upcoming mixed-use development is set to transform the Lentor area into a bustling hub, with anchor tenants including the CS Fresh supermarket and ChildFirst Pre-school.
Overall, despite the recent changes in shareholding and fluctuations in stock prices, both GuocoLand and EWI continue to push forward with their respective projects. As they look towards the future, both companies remain committed to delivering exceptional properties and creating vibrant communities for residents to enjoy.