GuocoLand's EcoWorld enters option to buy Sydney residences for A$40m

GUOCOLAND'S Malaysia-listed unit, EcoWorld International, has entered into an option agreement that will allow it to buy 25 out of 30 strata units in a Sydney site for A$33.8 million (S$34.7 million).

EcoWorld has until Sept 7, 2018 to exercise its option to purchase. If it does not exercise the option by that date, the owners of the 25 apartments have 30 days to force EcoWorld to buy the units from them.

The agreement gives EcoWorld consent from owners holding 84.2 per cent of the unit entitlements in the site, more than the 75 per cent required under Australian law to redevelop or sell. EcoWorld will seek to acquire the remaining five units by negotiation or through the strata renewal process.

Assuming the remaining five units are acquired at the same rate of A$3,635 per square metre, EcoWorld could pay A$40 million for the project.

Located at 1 to 3 Lachlan Ave in Macquarie Park, the site lies 12 kilometres north-west of Sydney's central business district, close to the Macquarie Innovation Park District.

Both GuocoLand and EcoWorld are property development companies.