IN line with its expansion efforts to continuously increase its presence and land bank in Klang Valley, EcoFirst Consolidated Bhd has entered into a conditional sale and purchase agreement (SPA) with Yeoh Siok Choo and Tan You Tiong to acquire 51% equity interests in BCM Holdings Sdn Bhd for a purchase consideration of RM81.6 mil.
BCM is the registered and beneficial owner of two contiguous parcels of freehold land located in Sungai Besi (BCM Properties). The two parcels of freehold land measure approximately 4.18 acres and is located along Jalan Satu, within Chan Sow Lin in Kuala Lumpur.
The said land has an approved plot ratio of 1:9.3 and that the building plan has been approved by Dewan Bandaraya Kuala Lumpur (DBKL).
According to EcoFirst’s group CEO Datuk Tiong Kwing Hee, the land is strategically located at the fringe of KL city centre with major connecting infrastructures servicing the land.
“After the completion of the acquisition, Yeoh and Tan (both owners of BCM) will collectively become EcoFirst’s strategic investors with a combined substantial stake of 20% of the enlarged capital of the company,” Tiong explained.
“We are confident that the off-take from the said development will be good due to its strategic location, product mix and affordable pricing.”
The estimated gross development value (GDV) of the intended development on BCM Properties is amounting to RM1.20 bil while the estimated gross development cost (GDC) is amounting to RM650 mil. The development order (DO) 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 via an approval letter.
The purchase consideration is proposed to be funded by a combination of cash of RM1.63 mil (2%) and issuance and allotment of 228.5 million new ordinary shares in the capital of the EcoFirst at an issue price of 35 sen per consideration share (98%). – April 7, 2021