REG - Eco Buildings Group - Letter of Intent confirming order for 10k houses

Eco BuildingsAnnouncement

19/11/2024 07:00

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RNS Number : 6992M  Eco Buildings Group PLC  19 November 2024

Certain information contained within this Announcement is deemed by the
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Regulation (EU) No. 596/2014 ("MAR") as applied in the United Kingdom. Upon
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the public domain.

 

19th November 2024

Eco Buildings Group plc

(the "Company" or the "Group")

Dominican Republic Delegation Visit Follow-Up

Letter of Intent confirming order for 10,000 houses valued at USD237m

Eco Buildings Group plc (AIM: ECOB), the UK-listed modular housing company, is
pleased to provide an update following the recent visit of the Dominican
Republic delegation, led by Minister Carlos Bonilla Sanchez ( Minister for
Housing, Habitat and Buildings)  to our manufacturing facility in Albania.

The visit marks a significant milestone in the partnership discussions between
Eco Buildings and the Dominican Republic government. The delegation's
inspection of our state-of-the-art, fully automated factory underscored the
transformative potential of our modular housing solutions. With products that
are up to 50% cheaper, two-thirds lighter, and five times faster to build than
conventional homes, our technology is uniquely positioned to address the
Dominican Republic's pressing social housing needs.

During the visit, Minister Bonilla Sanchez expressed strong interest in the
advanced capabilities of our manufacturing processes and the quality of our
glass fibre-reinforced gypsum (GFRG) panels, which have already been certified
in Chile and approved for use across multiple Latin American markets. This
visit reinforced the Dominican Republic government's confidence in Eco
Buildings as a strategic partner for delivering affordable, sustainable
housing solutions.

Following the visit, detailed negotiations have progressed positively,
building on the Letter of Intent signed with Gramma Constructora SRL (a large
private construction company headquartered in the Dominican Republic). This
agreement outlines the purchase of 10,000 modular homes over the next five
years, subject to regulatory approvals. Importantly, the approval process will
require homologation rather than full certification, significantly
streamlining the timeline. Additionally, the sample wall is already on its way
to the Dominican Republic for evaluation and testing. Gramma Constructora SRL
has committed to acquiring an initial tranche of 2,000 units annually upon
receiving the necessary governmental certifications. Discussions are also
advancing regarding the potential establishment of a turnkey manufacturing
facility in the Dominican Republic, further demonstrating Eco Buildings'
commitment to local economic development. The value of the total contract once
executed is USD237m of gross revenue to Eco Buildings Group PLC.

Sanjay Bowry, CEO of Eco Buildings, commented:

 "We are very pleased with the progress achieved during the Dominican
Republic delegation's visit to our Albanian factory. Their enthusiasm and
recognition of our technology's value reaffirms Eco Buildings' ability to meet
critical housing challenges globally. The successful alignment of our vision
with their housing strategy marks the beginning of what we hope will be a
long-term, impactful partnership."

"We look forward to formalizing agreements in the near future and contributing
to the Dominican Republic's social housing initiatives, helping to deliver
thousands of homes that are not only affordable but also sustainable and
high-quality."

Eco Buildings remains committed to supporting governments and private sector
partners worldwide to address housing deficits with innovative, efficient, and
eco-friendly solutions. Further updates on this partnership and its
developments will be announced in due course.

 

About Eco Buildings Group plc

Eco Buildings is a leading innovator in prefabricated, green housing products,
leveraging proven technology based on GFRG panels. Our modular housing
solutions cater to both affordable and high-end housing markets, combining
cost efficiency, speed of construction, and sustainability. With a growing
portfolio of international projects, Eco Buildings is dedicated to redefining
construction for the future.

Further information is available on Eco Buildings
website: www.eco-buildings.net (http://www.eco-buildings.net/)

 

For more information contact:

 Eco Buildings Group plc                               Tel: +44 (0) 207 380 0999

 Sanjay Bowry, Chief Executive Officer

 Fiona Hadfield, Finance Director

 Spark Advisory Partners Limited (Nominated Adviser)   Tel:  +44 (0) 203 368 3550

 Matt Davis / James Keeshan
 Tavira Securities Limited (Broker)                    Tel:  +44 (0) 203 192 1739

 Oliver Stansfield / Jonathan Evans

 

Notes

The Company has acquired proven and innovative prefabricated technology which
has been in development and commercial use since 2006. Eco Buildings' range of
prefabricated, green housing products based on glass fibre reinforced gypsum
panels ("GFRG") provides a construction solution for both affordable and
high-end housing.

Eco Buildings has already secured two sales contracts with major construction
companies, one in Albania, the other in Kosovo, which are expected to generate
gross sales revenue of approximately up to €38 million in total per annum
over the first three years (approximately €114 million in total) following
Admission.

The market share for factory-based building technology is expected to grow
significantly over the coming years as private developers and the public
sector seek to address the substantial and growing deficit in housing stock
and issues of construction cost, speed and quality and housing affordability.

 

 

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