KUALA LUMPUR: Eco World Development Group Berhad (EcoWorld Malaysia) announced on 25 February 2025 that it had entered into the following agreements with Pearl Computing Malaysia Sdn Bhd (“Pearl Computing”) as the Buyer and Lessee, respectively:

1. a conditional sale and purchase agreement (“SPA”) via Paragon Pinnacle Sdn Bhd, a whollyowned subsidiary of EcoWorld Malaysia, to dispose of 58 acres of leasehold industrial land within Eco Business Park V (“EBP V”) in Selangor to the Buyer for a cash consideration of RM 266.1 million, and
2. an agreement to build and lease the shell and core of data centres and associated structures on a separate, approximately 92.44 acres of land at EBP V, in accordance with the Lessee’s specifications (“ATBL Project”), via Quantum Alpha Sdn Bhd (“Quantum Alpha”), a whollyowned subsidiary of EcoWorld Malaysia.

Commenting on the SPA, Dato’ Chang Khim Wah, President and CEO said, “The sale of the 58 acres of land at EBP V presents an opportunity for the Group to realise the value of our matured industrial landbank and host another hyperscale data centre operator at one of our industrial parks, this time in the Klang Valley. Since FY2024, we have entered into 4 notable sales of industrial lands to market leading data centre players, which demonstrates the suitability of our business parks as ideal sites for digital and high-tech operations. Collectively, the proceeds from these sales amount to RM1.586 billion.”

The completion of these land deals will add on to the Group’s cash position (including short-term funds) which stood at RM1.36 billion as at 31 October 2024. EcoWorld Malaysia intends to quickly redeploy this substantial boost to its cash reserves to expand its landbank for development whilst actively pursuing strategic opportunities to grow its portfolio of recurring income assets in a meaningful manner.

“EcoWorld Malaysia’s rapid growth from 2013 to 2024 was founded on the strength of our 5 development revenue pillars, designed to serve the varied business needs and lifestyle aspirations of a wide group of property buyers across the industrial, commercial and residential market segments. As we mature as a property group, we are constantly evolving and improving our business model. The ATBL Project is in line with our plans to build up a strong portfolio of investment properties, which will establish a solid foundation of recurring income sources to complement and anchor the cashflow and earnings from the Group’s development activities,” said Chang.

The agreement between the Lessee and Quantum Alpha is for an initial term of 20 years, with a renewal option of up to 10 additional years.

“The lease will provide us with very stable recurring income over the lease terms. Accordingly, this is an ideal asset to serve as the cornerstone of EcoWorld Malaysia’s recurring income aspirations, as it will deliver sizeable fixed rental income revenues over the next 20 to 30 years.

At present, the Lessor is a wholly owned subsidiary of EcoWorld Malaysia. However, discussions are underway with various parties to jointly undertake the ATBL Project. This will result in EcoWorld Malaysia eventually owning up to 80% of Quantum Alpha,” Chang mentioned.