EcoWorld unit acquiring Johor land for RM450.13m, eyes affordable housing development

KUALA LUMPUR (Jan 18): A unit of Eco World Development Group Bhd (EcoWorld Malaysia), Eco Botanic 3 Sdn Bhd (EB3SB) is acquiring a 240-acre land in Pulai, Johor from River Retreat Sdn Bhd (RRSB) for RM450.13 million, and will subsequently develop the land for affordable housing.

In a filing to Bursa Malaysia on Thursday, the group said EB3SB has inked a conditional sale and purchase agreement (SPA) with RRSB and separately, a conditional development agreement with state-controlled Permodalan Darul Ta’zim Sdn Bhd (PDT), which has nominated EB3SB as acquirer and developer of said land.

This would be the second land acquisition in Iskandar Malaysia by the group within a span of less than five months. In September 2023, the group had proposed to acquire 403.78 acres of industrial land also located in Kulai, Johor.

Notably, the land EB3SB is acquiring from RRSB is located in Iskandar Puteri, next to Eco Botanic and Eco Botanic 2 — two of EcoWorld's existing matured townships in Iskandar Malaysia.

Ecoworld's strategy of direct land acquisition, in addition to its development, replicates the proven approach they previously employed with PDT and RRSB for the development of Eco Botanic 2.

"With the last phase of the landed homes left to be launched at Eco Botanic 2, the development of the new land, structured based on the success of the earlier model agreed with PDT and RRSB for Eco Botanic 2, comes at an opportune time, " it said.

The land, measuring 240.13 acres, has been proposed to be developed into a mixed residential and commercial township development suitable for both first-time home buyers and the M40 group, to be known as Eco Botanic 3 with a preliminary estimated gross development value of RM3.88 billion.

RRSB is a wholly-owned subsidiary of Iskandar Coast Sdn Bhd, which in turn is 80%-owned by Iskandar Investment Berhad. The remaining 20% shares in Iskandar Coast Sdn Bhd is held by Iskandar Waterfront Holdings Sdn Bhd.

In a separate statement, Johor Menteri Besar Datuk Onn Hafiz said the project is significant for the target group, as it allows them 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 that progress of the housing sector in the state is always competitive, especially for the provision of affordable homes for the M40 group, which should be comfortable to live in and offering better quality of life for the people of Johor.”

Meanwhile, EcoWorld Malaysia president and CEO Datuk Chang Khim Wah said the new Eco Botanic site has been structured based on the proven success of Eco Botanic 2's joint development model.

"This will enable the project to not only continue to offer affordable products (both high-rise and landed) for the targeted segment, but for buyers to also 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.”