KUALA LUMPUR: Eco World Development Group Bhd (EcoWorld Malaysia) has proposed to acquire 403.78 acres of land located in Kulai, Johor for RM211.065mil cash.
In a filing with Bursa Malaysia, EcoWorld Malaysia said it entered into a conditional sale and purchase agreement with IOI Prima Property Sdn Bhd for the land acquisition.
The group plans to develop the land into a business park to be known as Eco Business Park VI (EBP VI) with an estimated gross development value (GDV) of RM1.58bil, catering to medium and light industrial businesses.
President and chief executive officer Datuk Chang Khim Wah said it was a very opportune acquisition which enables the group to ramp up its industrial portfolio in Iskandar Malaysia.
“Sales at our Eco Business Parks have seen exponential growth with a 3-year CAGR of 51% recorded from FY2020 – FY2022.
“The upward trajectory has continued this year with RM838mil achieved in just seven months of FY2023 from our four Eco Business Parks alone. This represents 111% of FY2022 full year sales of RM753mil from our industrial projects, which was a record high at that time,” he said.
“The strong industrial growth we have been experiencing was contributed by both local and international customers. Local business owners who had successfully reinvented themselves were able to compete and gain market share during the pandemic, giving them great confidence to invest in acquiring new premises.
“From April 2022, following the reopening of the country’s borders, enquiries from foreign industrialists intensified, which we were able to translate into several notable sales, thus adding on to the already strong demand from local businesses.” Chang said.
EcoWorld Malaysia said its total industrial landbank following the latest acquisition increased to 2,416 acres of which 1,647 acres is situated in Iskandar Malaysia.
“With the acquisition of the new land, we will be able to further grow our market share and cater to a wider range of industrial customers. Accordingly, we are confident that this acquisition augurs well for the group’s future growth and earnings prospects,” Chang said.