PETALING JAYA: Eco World Development Group Bhd (EcoWorld Malaysia) has proposed to sell 49.83 hectares of industrial land in Kulai, Johor Bahru, to Microsoft Payments (Malaysia) Sdn Bhd for RM402.3 million.
The property developer said its subsidiary, Eco Business Park 6 Sdn Bhd, signed a conditional sale and purchase agreement (SPA) with Microsoft Payments on June 7 to dispose of the land, located within Eco Business Park VI (EBP VI).
“However, at this juncture, the quantum for each of these utilisations has yet to be finalised and cannot be ascertained,” it said in a filing with Bursa Malaysia today.
EcoWorld Malaysia said the group will use the balance after setting aside the above as working capital.
The proposed land sale marks the first transaction for EBP VI, less than six months since the company completed the acquisition of the land on Jan 18, 2024.
“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.
“It would also allow the group to rapidly unlock the value of EBP VI and accelerate cash flow generation from the project,” it said.
EcoWorld Malaysia said the completion of the proposed exercise would add to the group’s cash reserves for new landbank acquisition which it is actively pursuing.
“The proposed land sale is anticipated to be completed in the second half of 2025,” it added.
At the close of trading, EcoWorld’s share price was up by 6 sen or 3.77% at RM1.65, giving the group a market capitalisation of RM4.86 billion.
Source: ecoworld-to-sell-land-to-microsoft-for-rm402mil – FMT
