EWI Capital achieves RM154 mil in sales for FY2025, completes internal restructuring

• Datuk Teow Leong Seng, president & CEO of EWI Capital: “Through our participation in AOF3, we have pivoted decisively towards real estate investment. To date, we have deployed AU$77 million into the fund, and we expect it to start generating income from the second half of FY2026 onwards.”  

KUALA LUMPUR (Dec 12): EWI Capital Bhd (formerly known as Eco World International Bhd) recorded RM154 million sales based on contracts exchanged in FY2025. Together with the reserves of RM18 million, the total adds up to RM172 million.

The company today announced its results for 4Q2025 (from Aug 1, 2025 to Oct 31, 2025) and FY2025 (Nov 1, 2024 to Oct 31, 2025).

The value of completed units available for sale stands at about RM125 million. Of this, approximately 50% comprises commercial units, with the remaining made up of residential units. EWI Capital aims to sell these units in the near term.

“To address protracted challenges in the UK and Australian property development markets, the Group is pivoting its business model towards investment holding, with the investment into Trust Capital Australian Office Fund No. 3 (AOF3) being its maiden significant investment. EWI Capital intends to accelerate the monetisation of certain of its remaining development sites to raise capital for further investment opportunities,” stated the company in a media release.

“In line with this strategic shift and as the final part of its internal restructuring exercise, the Group undertook a comprehensive reassessment of its asset portfolio. Taking into account the prolonged cost inflation trend that has risen at a faster pace than house price growth, EWI Capital recognised an impairment on the amount owing by joint ventures by RM326 million and wrote down the value of its Macquarie Park site by RM64 million in 4QFY2025,” it added.

This resulted in an overall loss before tax of RM414 million for FY2025.

“Real estate markets in both the UK and Australia remain challenging, with selling prices remaining weak despite the expectation of interest rate cuts. Meanwhile, the escalation in construction costs over the past few years continues to outpace the modest gain in selling prices,” said Datuk Teow Leong Seng, president & CEO of EWI Capital.

Against this backdrop, EWI Capital has been actively exploring strategic investment and development opportunities that can generate nearer-term income. Teow added that while legacy development assets are facing headwinds amid elevated interest rates and cost pressures, the current environment also presents attractive investment opportunities in certain real estate sectors.

This includes the Australian office sector which is supported by improved financing conditions, stabilised yields and strong market fundamentals. Currently, prime office assets in Australia yield approximately 6% to 8% annually, with some available at prices below their replacement costs.

In October 2025, the Group announced its decision to commit A$100 million to AOF3, which will invest primarily in prime office assets in Australia. From an accounting standpoint, this investment will also help to accelerate income recognition as rental revenues may be recognised as soon as the Fund completes the acquisition of an identified office asset.

“Through our participation in AOF3, we have pivoted decisively towards real estate investment. To date, we have deployed A$77 million into the fund, and we expect it to start generating income from the second half of FY2026 onwards. We are targeting an internal rate of return of at least 10%, with the potential for further gain should interest rates normalise,” Teow said.

To enable EWI Capital to take further advantage of the present window of opportunity, where property investment in certain sectors offers relatively attractive and compelling risk-adjusted returns, the Group plans to accelerate the monetisation of certain of its existing assets.

“Accordingly, as a final part of its overall internal restructuring exercise, a comprehensive reassessment of its existing property portfolio was carried out. This was with a view to determine the prevailing selling prices, incremental development costs, potential development timeline of each site and the sustained trend of construction cost inflation outpacing house price growth,” stated EWI Capital.

“A balance sheet that reflects the prevailing market conditions places EWI Capital in a better position going forward to raise cash in its quest to establish a clear pathway to return to profitability as soon as possible,” it added.

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