BERNAMA – EcoFirst acquires land bank at Fringes of KL City Centre with GDV of RM1.2 bln

KUALA LUMPUR, April 7 – EcoFirst Consolidated Bhd has entered into a conditional share sale agreement with the vendors, Yeoh Siok Choo and Tan You Tiong, to acquire 51 per cent equity interests in BCM Holdings Sdn Bhd (BCM) for a purchase consideration of RM81.6 million.

BCM is the registered and beneficial owner of two contiguous parcels of freehold land located in Sungai Besi (BCM Properties) measuring approximately 4.18 acres and is located along Jalan Satu, within Chan Sow Lin in KL

The said land has an approved plot ratio of 1:9.3 and that the building plan has been approved by Kuala Lumpur City Hall (DBKL).

This is a strategic location at the fringe of KL City Centre. The Tun Razak Exchange covering an area of 70 acres envisioned to be the World Islamic financial hub is 1.5 km to the north and Bandar Malaysia covering 495 acres is 1.0 km to the south of the said land.

Major connecting infrastructures servicing the land are Jalan Sungai Besi, Besraya Expressway, Jalan Loke Yew, Jalan Istana, SMART Tunnel, MEX Expressway, East-West Link Highway and New Pantai Expressway. The Chan Sow Lin Klang Valley Mass Rapid Transit (MRT2) and Light Rail Transit (LRT) are located some 700 metres away, EcoFirst group chief executive officer Datuk Tiong Kwing Hee said in a statement today

He said that it is also in line with group‘s expansion efforts to continuously increase its presence in the property development industry by increasing land bank in the Klang Valley area

After the completion of the acquisition, Yeoh and Tan will collectively become EcoFirst’s strategic investors with a combined substantial stake of 20 per cent of the enlarged capital of the company.

We are confident that the off-take from the said development will be good due to its strategic location, product mix and affordable pricing, he added

The estimated gross development value of the intended development on BCM Properties amounts to RM1.2 billion while the estimated gross development cost amounts to RM650 million.

The development order for the BCM Properties has already been approved for the development of 1,620 units of serviced apartments within three blocks of 70 storeys

In October last year, the building plan on the BCM Properties has also been approved by DBKL.

The group said the purchase consideration was arrived at following negotiations between EcoFirst and the vendors on a willing-buyer willing-seller basis.

The purchase consideration of RM81.6 million represents a discount of RM983,000 or 1.2 per cent to the adjusted net asset of BCM.

The purchase consideration is proposed to be funded by a combination of RM1.63 million cash or two per cent and the issuance and allotment of 228.5 million new ordinary shares in the capital of EcoFirst at an issue price of RM0.35 per consideration share (98 per cent).