EcoFirst acquires Sungai Besi land

KUALA LUMPUR: Ecofirst Consolidated Bhd has entered into a conditional sale share agreement with Yeoh Siok Choo and Tan You Tiong, to acquire 51% equity interests in BCM Holdings Sdn Bhd for RM81.6mil.

BCM is the registered and beneficial owner of two contiguous parcels of freehold land located in Sungai Besi (BCM Properties).

EcoFirst, in a statement said the two parcels of freehold land measure approximately 4.18 acres and is located along Jalan Satu, within Chan Sow Lin in KL.

It added that the land had an approved plot ratio of 1:9.3 and that the building plan has been approved by Kuala Lumpur City Hall.

Group CEO Datuk Tiong Kwing Hee said the acquisition was in line with the 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% 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, ” Tiong said.

He added that the estimated gross development value (GDV) of the intended development on BCM Properties is amounting to RM1.2bil, while the estimated gross development cost is amounting to RM650mil.

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, ” the company said.

EcoFirst 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 RM81.6mil represents a discount of RM983,000 (1.2%) to the adjusted net asset of BCM, it said.

“The purchase consideration is proposed to be funded by a combination of cash of RM1.63mil (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%), ” it added.