PETALING JAYA: Eco World Development Group Bhd (EcoWorld Malaysia) is selling 123.141 acres of industrial land in Kulai, Iskandar Malaysia, to Microsoft Payments (M) Sdn Bhd for RM402.3 million. This land is part of EcoWorld Malaysia’s Eco Business Park VI (EBP VI) development.
EcoWorld Malaysia has seen a significant increase in demand for its industrial products within its Eco Business Parks. This demand has resulted in a 68% compounded annual growth rate from financial year 2020 (FY20) to FY23 for the industrial segment, with sales exceeding RM1 billion in FY23 alone, according to a filing with Bursa Malaysia.
The company plans to use part of the RM402.3 million from the sale for developing the land and covering associated expenses over the next 24 months. Some funds will also go towards repaying bank loans related to the land, though the exact amounts for these allocations have not been determined. The remaining funds will be used as working capital, with the timing dependent on actual needs. Any unused funds will be placed in deposits with financial institutions or short-term money market instruments.
EcoWorld Malaysia noted that the country’s transformation into a data center hub has boosted demand for industrial land, and the group is well-positioned to meet this demand with its large land bank of 1,068 acres, primarily in Iskandar Malaysia. This includes the recently acquired EBP VI, which totals 403.78 acres.
The sale of the land to Microsoft Payments marks the first transaction for EBP VI, less than six months after EcoWorld Malaysia acquired the land on January 18, 2024. The company believes that having a major technology leader establish a data center at EBP VI will increase demand for the park’s other industrial products and help unlock the value of EBP VI, accelerating cash flow generation from the project.
