Ekovest Bhd's EkoGateway@KL River City project.
KUALA LUMPUR: Ekovest Bhd
plans to undertake a mixed development project with a gross development cost of RM293.8mil in Setapak, Kuala Lumpur, by combining its existing 1.59-acre land bank with adjoining land measuring 1.16 acres.
The construction and property development firm announced to Bursa Malaysia yesterday that its unit Ekovest Properties Sdn Bhd had sealed an agreement to buy the two adjoining parcels of land from Ekovest’s substantial shareholder, Lim Seong Hai Holdings Sdn Bhd (LSHHSB), for RM26.77mil.
The purchase is a related party transaction, as Ekovest managing director Datuk Seri Lim Keng Cheng is a major shareholder and director of LSHHSB, which in turn owns 9.48% equity interest in Ekovest.
The two parcels of land are situated in Section 85, on the western side of Jalan Pahang, Kuala Lumpur.
Ekovest said the proposed mixed development project, called EkoQuay, consisted of serviced apartments and retail/commercial blocks.
It was previously reported that EkoQuay would be a component of the KL River City project, which also includes EkoGateway, EkoTitiwangsa and EkoRiver.
The company estimated to make a profit of RM103.3mil from the project, which is expected to start next year and be completed within four years.
The development order for the project was approved by Kuala Lumpur City Hall in February 2016. However, it said, an amended development order had been submitted in October with an increased plot ratio and the integration of new land.
Ekovest said the acquisition would be financed via internally generated funds and borrowings in the proportion of 30%:70%.
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