KUALA LUMPUR: Eco World Development Group Bhd (EcoWorld Malaysia) has announced that it has inked several agreements to develop 10 parcels of freehold land in Selangor. This comes after its participation in a request for proposal process initiated by Boustead Properties Bhd (BProp).

According to BERNAMA News Agency, EcoWorld Malaysia’s 81 per cent-owned subsidiary, Mutiara Balau Sdn Bhd (MBSB), has entered into two conditional sale and purchase agreements to acquire the land, measuring 342.87 hectares, for RM742.4 million. BProp retains the remaining 19 per cent stake in MBSB. The acquisition is expected to be completed by the first half of 2025.

EcoWorld Malaysia revealed in a filing with Bursa Malaysia that the proposed land acquisition will be developed into a mixed residential and commercial development known as Eco Forest 2. The company, along with BProp, will engage Eco World Project Management Sdn Bhd, a wholly-owned subsidiary of EcoWorld Malaysia, as the development manager.

The company added that
the acquisition would allow it to replenish its residential landbank in the Semenyih corridor, extending the development life of its existing townships. The proposed development is anticipated to contribute positively to EcoWorld Malaysia’s future earnings and enhance its net assets due to potential future profit contributions.

EcoWorld Malaysia also noted that the effects of the acquisitions and development on its gearing will depend on the eventual funding mix. The company has entered into a subscription and shareholders’ agreement with BProp and MBSB to regulate parties’ rights as MBSB’s shareholders and record their commitments to subscribe for shares in MBSB.

Through this agreement, EcoWorld Malaysia sees an opportunity to collaborate with BProp, leveraging on each other’s strengths and capabilities to ensure the completion of the land acquisitions and subsequent project development.