KUALA LUMPUR: Eco World Development Group Bhd is buying 163.40 hectares in Kulai, Johor for RM211.065 million in cash.
The company today entered into a conditional sale and purchase agreement with IOI Prima Property Sdn Bhd on the acquisition.
It 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 of RM1.58 billion, catering to medium and light industrial businesses.
"Business owners and investors will be able to enjoy EcoWorld's one-stop industrial solutions providing modern facilities and comprehensive services to assist them in setting up their operations quickly and seamlessly," it said in a statement.
EcoWorld Malaysia president and chief executive officer Datuk Chang Khim Wah said this will enable the company to ramp up its industrial portfolio in Iskandar Malaysia.
Chang said sales at its Eco Business Parks have seen exponential growth with a three-year compound annual growth rate (CAGR) of 51 per cent recorded from the financial year 2020 (FY20) to FY22.
"The upward trajectory has continued this year with RM838 million achieved in just seven months of FY23 from our four Eco Business Parks alone.
"This represents 111 per cent of FY2022 full-year sales of RM753 million from our industrial projects, which was a record high at that time," he said.
EcoWorld Malaysia is well-placed to benefit from the positive news flow surrounding Iskandar Malaysia given that it has numerous township projects there, namely Eco Botanic, Eco Botanic 2, Eco Spring and Eco Summer as well as Eco Tropics.
With the addition of the new land, the company will also have five sizeable industrial parks, comprising four in Iskandar Malaysia (EBP 1, II, III & VI) and one in Selangor (EBP V).
Chang said the company's total industrial landbank following the latest acquisition has 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," he added.