Main Market-listed property developer EcoFirst Consolidated Bhd (“EcoFirst” or “Group”) (ECOFIRS:3557) has entered into a conditional sale and purchase agreement (“SPA”) with Yeoh Siok Choo and Tan You Tiong (collectively, the “Vendors”), to acquire 51 percent equity interest in BCM Holdings Sdn Bhd (“BCM”) for a purchase consideration of RM81.6 million.
BCM is the registered and beneficial owner of two contiguous parcels of freehold land located in Sungai Besi (“BCM Properties”). The 2 parcels of freehold land measure approximately 4.18 acres and is located along Jalan Satu, within Chan Sow Lin in KL. The said land has an approved plot ratio of 1:9.3 and that the building plan has been approved by Dewan Bandaraya Kuala Lumpur (DBKL).
EcoFirst Consolidated Berhad Group Chief Executive Officer Tiong Kwing Hee said, “This is a strategic location at the fringe of KL city centre. The Tun Razak Exchange covering an area of 70 acres envisioned to be the World Islamic Financial Hub is 1.5km to the North and Bandar Malaysia is covering an area of 495 acres is 1.0km to the South of the said land.
Major connecting infrastructures servicing the land are Jalan Sungai Besi, Besraya Expressway, Jalan Loke Yew, Jalan Istana, SMART Tunnel, MEX Expressway, East-West Link Highway and New Pantai Expressway. The Chan Sow Lin Klang Valley Mass Rapid Transit (MRT2) and Light Rail Transit (LRT) are located some 500 metres away.”
“It is also in line with our Group’s expansion efforts to continuously increase its presence in the property development industry by increasing our land bank in Klang Valley area. After the completion of the acquisition, Ms Yeoh and Mr Tan will collectively become EcoFirst’s strategic investors with a combined substantial stake of 20% of the enlarged capital of the company. We are confident that the off-take from the said development will be good due to its strategic location, product mix and affordable pricing,” Dato’ Tiong added.
The estimated gross development value (GDV) of the intended development on BCM Properties is amounting to RM1.20 billion while the estimated gross development cost (GDC) is amounting to RM0.65 billion. The development order (DO) for the BCM Properties has already been approved for the development of 1,620 units of serviced apartments within three blocks of 70 storeys. In October last year, the building plan on the BCM Properties has also been approved by DBKL via an approval letter.
The purchase consideration was arrived at following negotiations between EcoFirst and the Vendors on a willing-buyer willing-seller basis. The purchase consideration of RM81.6 million represents a discount of RM983,000 (1.2 percent) to the adjusted net asset of BCM.
The purchase consideration is proposed to be funded by a combination of cash of RM1.63 million (2 percent) and issuance and allotment of 228.5 million new ordinary shares in the capital of the EcoFirst (“Consideration Shares”) at an issue price of RM0.35 per Consideration Share (98 percent).
