EcoWorld Malaysia inks sale of industrial land to Microsoft for RM402.3mil

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KUALA LUMPUR: Eco World Development Group Bhd has via its subsidiary struck a deal to dispose of 123.141 acres of industrial land in Eco Business Park VI in Kulai, Iskandar Malaysia, to Microsoft Payments (Malaysia) Bhd for RM402.3mil cash.

The disposal consideration is calculated based on the area of the land at an agreed rate of RM75 psf, it said in a filing with Bursa Malaysia.

The property developer had acquired the development land on Sept 5, 2023, at a price of RM12 psf.

EcoWorld said part of the disposal consideration will be used for the development of the land and to defray associated expenses for the proposed land sale, as well as to repay the bank loan for the land.

The balance of the proceeds will be used as working capital for the group.

According to EcoWorld, the presence of an internationally recognised technology leader choosing to set up a sizeable data centre in Eco Business Park 6 will further drive demand for EBP VI’s other industrial products.

"It allows the group to rapidly unlock the value of EBP VI to accelerate cashflow generation from the project.

"The completion of the Proposed Land Sale will add to EcoWorld Malaysia’s cash reserves for new landbank acquisition which the Group is actively pursuing, to broaden and deepen its market share under each of its four revenue pillars," it added.