KUALA LUMPUR: Eco World Development Group Berhad (EcoWorld Malaysia) announced today that following its participation in a request for proposal process initiated by Boustead Properties Berhad (“BProp”), it had inked several agreements to develop 10 parcels of freehold land measuring 847.249 acres in aggregate (“New Land”). These include the entry by its 81%-owned subsidiary, Mutiara Balau Sdn Bhd (“MBSB”), into 2 conditional sale and purchase agreements (“SPAs”) to acquire the New Land, for a total cash consideration of RM742.4 million. The remaining 19% in MBSB is owned by BProp.

The New Land, located in Mukim Beranang and Mukim Semenyih in Ulu Langat, Selangor, is next to Eco Forest and near Eco Majestic. Well positioned within a designated development area, the site’s over 35-year-old palm trees are no longer suitable for productive use.

Eco Majestic, launched in 2014, was the first EcoWorld township in Klang Valley, conceptualised as a gated and guarded community for upgraders. Eco Forest followed in 2017, catering to first-time homebuyers. Together, they span 1,566 acres with RM5.2 billion cumulated sales recorded as at 31 August 2024. Currently 28% of the land is still undeveloped, mainly earmarked for commercial development.

This acquisition allows EcoWorld Malaysia to replenish its residential landbank in the Semenyih corridor, extending the development life of its existing townships. The New Land is planned to be developed into a mixed residential and commercial development with a preliminary estimated gross development value of RM4.60 billion. To be known as Eco Forest 2, the proposed development will primarily comprise landed homes targeting the mass market segment.

Given the high demand for well-designed townships in the Klang Valley and EcoWorld’s established track record in the locality, the Board is confident that Eco Forest 2 will be well received. This augurs well for the Group’s future growth and earnings prospects.