Eco World Development Group acquires 880 hectares in Kuala Selangor for RM1.18 billion cash

Eco World Development Group acquires 880 hectares in Kuala Selangor for RM1.18 billion cash

KUALA LUMPUR, September 22 — Eco World Development Group Bhd is acquiring approximately 880 hectares of leasehold land in Ijok, Kuala Selangor for RM1.18 billion cash.

The land is located approximately 45 kilometres (km) from Kuala Lumpur city centre, 40km from Petaling Jaya city centre and 18km from Sungai Buloh town centre.

In a statement today, Chairman Tan Sri Liew Kee Sin said the opportunity to acquire over 800ha in the Klang Valley was rare.

“This strategic acquisition will enable EcoWorld to establish a dominant presence in North Western Klang Valley growth corridor with access to a new market catchment,” he said.

Currently, EcoWorld has three developments in the Klang Valley — Eco Sky (Taman Wahyu, Jalan Ipoh); Eco Majestic (Semenyih); and, Eco Sanctuary (Shah Alam).

EcoWorld has identified three projects to be developed on the land:

A mixed eco township known as “Eco Gardens”;

An integrated gated industrial hub “Eco Business Park V”; and

Affordable homes to be known as “Laman Indah”, which includes housing units to be built for settlers and Rumah Selangorku homes.

The entire project is expected to take 15 years to complete and has an estimated gross development value of RM15 billion.

EcoWorld also announced that it was in the process of refining its partnership for growth business model to raise equity funding at the project level.

The business model contemplates the initial acquisition of strategic pieces of land by EcoWorld followed by the invitation of like-minded institutional, private equity or corporate partners to co-invest and fund the development, EcoWorld said.

It said this would enable EcoWorld to acquire sizeable strategic pieces of land without over-extending its balance sheet.

“Over the last two years we have received numerous enquiries from institutional funds as well as corporate and industry players expressing their interests to directly invest in development projects with us, particularly in the landed residential township segment.

“Now that we have found a sizeable tract of land in an important growth location, we will be exploring opportunities to work with such potential partners to jointly develop the land,” said President/Chief Executive Officer Datuk Chang Khim Wah.

Datuk Chang said EcoWorld intended to retain a minimum 30 per cent equity in the development under the proposed partnership for growth model to assure that the Group enjoys a meaningful share of the development profits.