KUALA LUMPUR (Sept 8): ECM Libra Group Bhd is to acquire two pieces of beachfront land in Johor for an aggregate RM36.86 million for future hospitality developments.
The plots of land are located in Desaru Coast, which is expected to benefit from tourist market catchments, the group said in a bourse filing on Friday.
ECM Libra said its wholly owned unit ECM Libra Desaru Sdn Bhd is acquiring the entire equity interest of Desaru Beachfront 2 Sdn Bhd, owner of a 36,831-square metre plot, for RM17.05 million from Desaru Development Holdings One Sdn Bhd.
Another wholly owned subsidiary, ECM Libra Beachfront Sdn Bhd, is to acquire a 44,427-sq metre plot for RM19.81 million from Desaru Beach Parks Sdn Bhd.
The acquisitions are to be funded via internally generated funds and bank borrowings, the group said, adding that they are expected to be completed in the fourth quarter of 2023.
ECM Libra said the acquisitions are in line with its initiative to continue its diversification into the hospitality sector, adding that since diversifying into hotel ownership and management in 2017, the group has acquired six hospitality assets.
Shares in ECM Libra were last traded on Thursday (Sept 7), closing at 21 sen, giving the group a market capitalisation of RM98.49 million.