Eco World buys Beranang land for RM3.5b township project

PETALING JAYA: Eco World Development Group Bhd has bought 492.7 acres of land in Beranang, Ulu Langat, Selangor, from Univas (Far East) Sdn Bhd for RM225.33 million to be developed into a RM3.5 billion township.
The acquisition will be undertaken by Majestic Blossom Sdn Bhd, the same wholly-owned subsidiary of Eco World that is acquiring the development rights to develop Eco Majestic in Semenyih, Selangor. Eco Majestic is a 1,073.12 acres township located within close proximity to the land in Beranang, which is situated between the towns of Semenyih and Broga.
Eco World said it plans to develop the land into a mixed residential and commercial township with a focus on affordable housing to complement the group's overall master development strategy for Eco Majestic.
The developer said it will fund the project through external borrowings.
Eco World said it is too early to ascertain the total development costs, timing of development, expected profits as well as the additional financial commitment required for the project pending submission to the authorities.
"Nevertheless, the board of Eco World is confident that the project augurs well for the group's plans to achieve strong and sustainable long-term growth," it told Bursa Malaysia yesterday.
Once the acquisition is completed, Eco World's landbank in Semenyih alone will increase to about 1,500 acres. With two sizeable parcels of land in the locality, Eco World said, it will be better positioned to reach out to a broader range of customers by offering products suitable for the mass, upgrader and luxury homes markets.
To enhance accessibility and improve connectivity, Eco World plans to upgrade the existing connecting roads from Eco Majestic to Bandar Tasik Kesuma, an established residential area, to the site.
Over the last several months, Eco World has announced a series of acquisitions and corporate exercises to boost its pipeline of projects and strengthen its balance sheet for future growth.
They include the proposed acquisition of 308.72 acres of land in Kota Kemuning to be developed into a luxurious eco-themed mixed residential and commercial project called EcoSanctuary, and development rights to eight projects.
"This will increase the group's project pipeline from three to 11 projects, ensure that it has the development expertise to execute the projects acquired and provide it an immediate active presence in three key development regions of Malaysia namely the Klang Valley, Iskandar Malaysia and Penang," Eco World said.
The developer is planning to raise about RM2.8 billion to fund its proposed acquisitions and provide working capital for ongoing and future projects. The latest acquisition brings Eco World's landbank to more than 4,000 acres.