EcoWorld Malaysia inks deal to develop Johor land

PETALING JAYA: Eco World Development Group Bhd’s (EcoWorld Malaysia) wholly owned subsidiary Eco Botanic 3 Sdn Bhd (EB3SB) has inked conditional agreements to jointly develop 13 parcels of freehold land (aggregate land area of 240.314 acres) in Pulai, Johor Baru.

In a filing with Bursa Malaysia, EcoWorld Malaysia said EB3SB signed a conditional development agreement with Permodalan Darul Ta’zim Sdn Bhd (PDT), where PDT agreed to nominate EB3SB to purchase and develop the land.

EB3SB has also entered into a conditional sale and purchase agreement with River Retreat Sdn Bhd (RRSB) to purchase the 240.314 acres of land for RM450.13mil.

This marks the group’s second land acquisition in Iskandar Malaysia within the span of less than five months. The group has announced that it proposed to acquire 403.78 acres of industrial land in Kulai, Johor in September 2023.

Located immediately adjacent to Eco Botanic and Eco Botanic 2, two of the group’s existing matured townships in Iskandar Malaysia, the acquired land is proposed to be developed into Eco Botanic 3, a mixed residential and commercial township development, suitable for both first-time home buyers and the M40 group.

This development has a preliminary estimated gross development value of RM3.88bil. Additionally, EcoWorld Malaysia stated the land has excellent connectivity to major highways, such as the Malaysia-Singapore Second Link Expressway and the Iskandar Coastal Highway.

Hence, the group said the land’s strategic location will enable it to ride on and contribute towards Iskandar Malaysia’s strong growth momentum.

EB3SB intends to fund the development costs for the proposed development of Eco Botanic 3 through a combination of internally generated funds and/or bank borrowings.

EcoWorld Malaysia president and chief executive officer Datuk Chang Khim Wah said the new land for Eco Botanic 3 will serve as a continuation for its target groups, namely, the M40 and the younger generation to meet their property ownership aspirations.

This is a common objective shared by EcoWorld, Perbadanan Kemajuan Perumahan Negeri Johor, PDT and RRSB.

“Accordingly, Eco Botanic 3 has been structured based on the proven success of Eco Botanic 2’s joint development model.

“This will enable the project to continue to offer affordable products (both high-rise and landed) for the targeted segment and also for buyers to enjoy the same quality products that EcoWorld is known for under its Eco Townships revenue pillar – landed strata living, which includes beautifully landscaped parks, gated and guarded security, established and comprehensive lifestyle amenities and infrastructure,” he said in a statement yesterday.

Additionally, Johor Mentri Besar Datuk Onn Hafiz said in a statement the development of the project is very significant in ensuring the target groups will be able to own a home in the strategic and rapidly developing urban area of Iskandar Puteri.

“The synergy between the state government and private sector is important in ensuring the progress of the housing sector in the state remains competitive.

“This is especially for the provision of affordable homes for the M40 group, which should be comfortable to live in, offering better quality of life for the people of Johor,” he said.