Property developer Eco World Development Group Bhd has launched a RM1.878 billion unrated medium-term note (MTN) programme to help fund land acquisition and the development of its build-to-lease data centre project in Selangor.
According to a Bursa Malaysia filing on Thursday, the MTN programme was set up under EcoWorld’s wholly-owned subsidiary, Quantum Alpha Sdn Bhd (QASB), which is leading the data centre initiative. The first tranche of RM3.58 million was issued on Thursday.
EcoWorld said the notes, to be issued periodically, were fully subscribed by a major local financial institution, demonstrating “strong investor confidence in the group’s credit profile and the long-term potential of the data centre project.” QASB signed a build-and-lease agreement in February with Pearl Computing Malaysia Sdn Bhd, a Google affiliate, to develop and lease data centres within Eco Business Park V in Puncak Alam, Selangor.
Under the agreement, QASB will construct the shell and core structures of the data centres on 92.44 acres of land according to the lessee’s specifications. The project, expected to be completed in 2027, will be leased to Pearl Computing for an initial 20-year term, with total rent projected at up to RM4.8 billion and a 10-year renewal option.
At the same time, EcoWorld also sold 58.19 acres of industrial land within the park to Pearl Computing for RM266.1 million.
The group confirmed on Thursday that discussions are ongoing with potential institutional investors interested in participating in the data centre development. Any investment could involve taking a stake in QASB, though EcoWorld plans to retain up to 80% ownership of the unit.
EcoWorld shares closed unchanged at RM2.08 on Thursday, giving the group a market value of RM6.66 billion. Year-to-date, the share price has fallen nearly 3%.
