EcoWorld Malaysia inks deal to sell land to Microsoft for RM402.3 mln
Published on: Monday, June 10, 2024
By: Bernama
KUALA LUMPUR: Eco World Development Group Bhd (EcoWorld Malaysia) is proposing to sell 49.83 hectares of industrial land in Kulai, Johor Bahru, to Microsoft Payments (Malaysia) Sdn Bhd for RM402.3 million.
The property developer said its wholly owned subsidiary, Eco Business Park 6 Sdn Bhd, signed a conditional sale and purchase agreement (SPA) with Microsoft Payments on June 7 to dispose of the land, located within Eco Business Park VI (EBP VI).
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“Part of the disposal consideration will be utilised for the development of the land and to defray associated expenses for the proposed land sale which are expected to be incurred within 24 months of the SPA’s date.
“A portion of the disposal consideration will also be set aside for the repayment of bank loan for the land. However, at this juncture, the quantum for each of these utilisations has yet to be finalised and cannot be ascertained,” it said in a filing with Bursa Malaysia today.
EcoWorld Malaysia said the group will use the balance, after setting aside the above, as working capital.
The proposed land sale marks the first transaction for EBP VI, less than six months since the company completed the acquisition of the land on Jan 18, 2024.
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“The group believes that the presence of an internationally recognised technology leader choosing to set up a sizeable data centre here will further drive demand for EBP VI's other industrial products.
“It would also allow the group to rapidly unlock the value of EBP VI to accelerate cashflow generation from the project,” it said.
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According to EcoWorld Malaysia, the completion of the proposed exercise will add to the group’s cash reserves for new landbank acquisition which it is actively pursuing.
The proposed land sale is expected to be completed in the second half of 2025, it added.
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