KUALA LUMPUR (April 18): A planned RM2.95 billion industrial park in Negeri Sembilan took another step forward on Friday, after the developers signed a tripartite agreement to create a joint venture for the project.
Eco World Development Group Bhd (KL:ECOWLD) will own 55% of the special purpose vehicle to develop the project within the Malaysia Vision Valley 2.0 economic corridor. SD Guthrie Bhd (KL:SDG) will hold a 30% stake, and Negeri Sembilan state agency NS Corporation will have the remaining 15%.
EcoWorld, to be appointed as the development manager, will pay RM572.76 million to acquire the land from SD Guthrie to develop the project to be known as Eco Business Park VII in the Jimah district. NS Corp will be the state-appointed coordinator and custodian of the corridor master plan.
The industrial park, spanning 1,195 acres, will be developed over nine years, according to a joint statement. The project will offer industrial lots, ready-built factories, and commercial properties catering to high-growth sectors like aerospace, electronics, logistics, and biotechnology, it said.
“It is crucial that we strengthen our domestic economy” amid current global uncertainties, said Negeri Sembilan Menteri Besar Datuk Seri Aminuddin Harun. “By focusing on high-value industries, we not only stand to attract quality investments, but also [create] more high-skilled job opportunities in Malaysia, particularly in Negeri Sembilan.”
For SD Guthrie, partnering with an experienced developer would strengthen its presence in industrial parks and renewable energy, as the company expands into the sectors to diversify its revenue.
“This collaboration is another pivotal step to unlock the significant value of our strategically located land bank,” said SD Guthrie group managing director Datuk Mohamad Helmy Othman Basha.
EcoWorld, which holds nearly 10,000 acres of land across the Klang Valley, Penang and Iskandar Malaysia, said partnerships are key to sustainable growth, and that it looks forward to working with SD Guthrie and NS Corp.
Eco Business Park VII is expected to be a “catalytic project that will drive impactful infrastructure development, create meaningful employment opportunities, and unlock new avenues for investment and progress in Negeri Sembilan”, said EcoWorld chief executive officer Datuk Chang Khim Wah.
Shares of SD Guthrie closed three sen higher at RM4.60 on Friday, giving the group a market capitalisation of RM31.8 billion ahead of the announcement. EcoWorld settled unchanged at RM1.75, valuing the property developer at RM5.2 billion.