KUALA LUMPUR: Eco World Development Group Bhd
(EcoWorld Malaysia) has announced that, following its participation in a request for proposal process initiated by Boustead Properties Bhd (BProp), it has inked several agreements to develop 10 parcels of freehold land in Selangor.
These include the entry by its 81 per cent-owned subsidiary, Mutiara Balau Sdn Bhd (MBSB), into two conditional sale and purchase agreements (SSAs) to acquire the land, measuring 342.87 hectares, for RM742.4 million. The remaining 19 per cent in MBSB is owned by BProp.
In a filing with Bursa Malaysia today, EcoWorld Malaysia said the acquisition is expected to be completed by the first half of 2025.
"The proposed land acquisition is to be developed into a mixed residential and commercial development known as Eco Forest 2.
"Both EcoWorld Malaysia and BProp will procure MBSB to appoint Eco World Project Management Sdn Bhd (EWPM), a wholly-owned subsidiary of EcoWorld Malaysia, as the development manager of the proposed development,” it said.
EcoWorld Malaysia added that the proposed land acquisition would allow the group to replenish its residential landbank in the Semenyih corridor, extending the development life of its existing townships, while the proposed development is expected to contribute positively to the future earnings of EcoWorld Malaysia.
"The proposed land acquisition is expected to enhance the net assets of the group in the future given the potential future profit contribution arising from the proposed development.
"The effects of the proposed land acquisitions and the proposed development on the gearing of the group will be dependent on the eventual funding mix to be used by the group,” said EcoWorld Malaysia.
Meanwhile, to regulate parties’ rights as MBSB’s shareholders and to record their commitments to subscribe for shares in MBSB, EcoWorld Malaysia had also entered into a subscription and shareholders’ agreement with BProp and MBSB.
"Through the agreement, EcoWorld Malaysia will also have the opportunity to collaborate with BProp. Parties will be able to leverage on each other’s strengths and capabilities, working towards the completion of the land acquisitions and subsequent project development,” it added. - Bernama
