Eco World buying land in Penang for RM730.9mil

KUALA LUMPUR: Eco World Development Group Bhd is acquiring 299.64 acres of leasehold land in Batu Kawan, Penang, for RM730.93mil to build residential and commercial properties.

In a filing with Bursa Malaysia yesterday, Eco World confirmed that it had received a letter of award from the Penang Development Corp (PDC) about its proposal to undertake the projects.

The developer said it was also leasing about 150 acres for 30 years, with an option to renew for another 30 years, for an estimated lease consideration of RM65.34mil.

Eco World said the 150 acres would be developed into an international standard golf course with a minimum of 18 holes and a club house.

“The development parcel and the lease parcel exclude a total area of 20.36 acres identified by PDC for other purposes. The estimated total consideration for the land parcels is approximately RM796.3mil,” it clarified following news reports about the land deal in Penang.

StarBiz had earlier reported that Eco World was the only bidder for the land and would sign the sale and purchase agreement with PDC at a later date to be attended by Eco World chairman Tan Sri Liew Kee Sin.

The purchase of the land will be the second parcel in Batu Kawan for Eco World. It already owns 24.28ha in the area on which it plans to launch a RM920mil mixed development called EcoMeadows, comprising 50% residential and 50% commercial components, in the second half of the year.

Eco World said its board was reviewing the detailed terms of the letter of award and that further details on the proposed Eco Marina development would be announced after it had accepted the letter.