EcoWorld Malaysia Unit To Sell Industrial Land For RM266 Mln

KUALA LUMPUR, Feb 25 (Bernama) -- Eco World Development Group Bhd’s (EcoWorld Malaysia) wholly-owned subsidiary, Paragon Pinnacle Sdn Bhd, has entered into a conditional sale and purchase agreement with Pearl Computing Malaysia Sdn Bhd for the disposal of a 23.55-hectare leasehold industrial land in Eco Business Park V for RM266.14 million cash.

EcoWorld Malaysia told the stock exchange part of the proceeds would be used to complete the remaining main infrastructure development on the land. A portion will also be set aside for repayment of bank loans for the land and to fund future development activities of Paragon Pinnacle.

At this juncture, the quantum and timing for each of these utilisations has yet to be finalised and can not be ascertained, it said. “The proposed land sale at Eco Business Park V presents an opportunity for the group to realise the value of its matured industrial landbank and host another hyperscale data centre operator at its industrial parks,” it added.

Since the financial year 2024, EcoWorld Malaysia has now entered into four notable sales of industrial land to market-leading data centre players. Collectively, the proceeds from these sales, including the proposed land sale, amounted to RM1.586 billion.

The completion of these land deals will add to the group’s cash position, including short term funds, which stood at RM1.36 billion as of Oct 31, 2024.

In a separate filing, the group said it has signed an agreement with Pearl Computing to build and lease for an initial term of 20 years, which could be renewed for up to 10 additional years.

“The total value of rent payable by the lessee to the lessor over the term is estimated to be up to RM4.8 billion,” it added.

-- BERNAMA