KUALA LUMPUR: Ecofirst Consolidated Bhd is acquiring the remaining 49% stake in BCM Holdings Sdn Bhd, to fully own the 4.18-acre freehold land in Sungai Besi for RM78.4mil.
The 2-contiguous freehold is located along Jalan Satu within Chan Sow Lin in KL, and it has the development order (DO) approved by Kuala Lumpur City Hall (DBKL) with a plot ratio of 1:9.3.
The property developer, in a statement, said EcoFirst had entered into a conditional share sale agreement with Tan You Tiong for the proposed acquisition.
Upon completion, BCM will become a wholly-owned subsidiary of EcoFirst.
“The acquisition of the remaining stake in BCM will give us full ownership of the land. This will allow the group to enjoy the full benefit of its strategic location at the fringe of KL city centre,” group chief executive officer Datuk Tiong Kwing Hee said.
“We are positive on the prospects of the development plans at BCM properties, and the strong take-up rate during the recent soft launch has been convincing. We expect to see further improvement as and when the property market gradually recovers,” he added.
Upon completion of the proposed development on the land, the group is expected to generate strong positive net cashflow of RM288mil.
“With a healthy balance sheet coupled with strong positive cashflow to be generated from the development of the Land, the board of directors, with the recommendation of the group ceo, is confident that EcoFirst should be able to start declaring some dividends commencing financial year ending May 31, 2023,” EcoFirst said.
The estimated gross development value (GDV) of the intended development of BCM Properties amounts to RM1bil, while the estimated gross development cost (GDC) amounts to RM620mil and expected gross profit of RM380mil.