Monday 22 Jul 2024
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KUALA LUMPUR (June 10): Eco World Development Group Bhd (KL:ECOWLD) said it plans to sell a 123.14-acre industrial land in Iskandar Malaysia, Johor to a company providing data centre services, for RM402.3 million or RM75 per sq ft.

The group said it had acquired the land — which forms part of the master land measuring 403.78 acres within Eco Business Park VI (EBP VI) — in September 2023 at RM12 per sq ft.

The proposed cash sale of the land to Microsoft Payments (Malaysia) Sdn Bhd marks the first transaction for EBP VI, said EcoWorld in a bourse filing on Monday.

“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,” said EcoWorld. "In addition, it allows the group to rapidly unlock the value of EBP VI to accelerate cash flow generation from the project."

Microsoft Payment (Malaysia), a wholly owned subsidiary of Microsoft Ireland Operations Ltd, had previously acquired four parcels of land measuring a total of 85.37 acres in Johor from Crescendo Corp Bhd (KL:CRESNDO) for RM447.64 million cash since November last year.

EcoWorld said its 123.14-acre land sale is expected to be completed in the second half of 2025.

With this deal, EcoWorld has joined other companies that have ridden the recent wave of artificial intelligence, particularly in data centres, which has swept through the capital market in Malaysia.

Previously, Sime Darby Property Bhd (KL:SIMEPROP) said it would build and lease out a hyperscale data centre at its Elmina Business Park, near Kuala Lumpur, in a deal worth RM2 billion.

For the financial quarter ended Jan 1, 2024, EcoWorld’s net profit climbed 22% year-on-year to RM69.63 million from RM57 million. Revenue climbed 10.9% to RM537.79 million from RM484.73 million, contributed by projects including Eco Business Parks in Iskandar Malaysia.

Shares of EcoWorld closed up six sen or 3.77% to RM1.65 on Monday, valuing the group at RM4.86 billion.

Edited ByS Kanagaraju
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