KUALA LUMPUR (Oct 15): EcoFirst Consolidated Bhd has proposed to expand its footprint in the Klang Valley by acquiring a 4.76-acre piece of land in Cahaya SPK, Shah Alam for RM42 million.
A mixed development has been planned on the leasehold land purchased from Modern Peak Sdn Bhd, the group said in a filing today.
The project, with a gross development value of RM311 million, will comprise four blocks featuring 1,098 small office/home office (SOHO) residential units, along with 40 units of shops, four units of department stores, and two business spaces.
Work is expected to commence in the first quarter of 2021, with an estimated development timeline of three years, said EcoFirst.
EcoFirst’s group CEO Datuk Tiong Kwing Hee said the acquisition is in line with the group’s strategy of seeking high-value pockets of land that it can quickly develop and turn around in the short- to medium term.
“Banking on the 100% take-up rate success of the first phase of our Ampang Ukay development, we seek to enrich the lives of Shah Alam communities with prime-located homes and retail amenities through our pocket development expertise,” he said in a statement.
“With Shah Alam being the capital of highly industrialised Selangor, our Cahaya SPK land purchase provides us with an opportunity to tap into the State’s nucleus of economic development and urbanisation.
“As such, we believe the area is ready for this unique residential concept on the back of a steady stream of homebuyers,” Tiong added.
Despite the soft property market, Tiong said the group is confident that its attractively priced homes will be positively-received.
The land purchasing price will be funded through a combination of internally-generated funds (10%), bank borrowings (70%) and by way of offset of the properties to be developed and constructed under the project (20%).
EcoFirst said that upon completion of the project, its total landbank would increase to 91.76 acres from 87 acres, which can last the group some 11 to 14 years. The bulk of the group’s landbank is primarily located in Ampang Ukay.
EcoFirst’s share price closed up 0.5 sen or 1.28% at 39.5 sen, valuing the group at RM312.21 million. Some 275,900 shares were traded.