EcoFirst to extend Klang Valley footprint via Shah Alam landbank acquisition

PETALING JAYA: EcoFirst Consolidated Bhd intends to expand its footprint in Klang Valley by acquiring a 4.76-acre leasehold landbank in Shah Alam for RM42 million.

Through its wholly-owned subsidiary EcoFirst Worldwide Sdn Bhd, had entered into a sale and purchase agreement with Modern Peak Sdn Bhd to acquire the mentioned land in Seksyen U9, Shah Alam, Selangor.

The group is planning to launch a RM311 million gross development value (GDV) mixed development in Cahaya SPK, Shah Alam on the said land.

The proposed development comprises 4 blocks featuring 1,098 SOHO residential units, along with commercial and retail shops, department stores, and business space. The residential units will also be based on the highly-functional dual key concept.

The land acquisition is expected to be completed within the next three months pending fulfilment of conditions by the vendor and authority’s consent.

Upon completion, the group’s total landbank would increase to 91.76 acres from 87 acres as at Oct 15, which can last the group up to 11 to 14 years. The bulk of the its landbank is primarily located in Ampang Ukay.

The acquisition will be funded by internally generated funds and/or bank borrowings.

Upon obtaining subsequent approvals for the upwards revision in residential density and GDV, the project will have an estimated development timeline of 3 years.

On the landbank acquisition, group CEO Datuk Tiong Kwing Hee stated the group intends to establish itself as a leading player in providing premium housing at affordable pricing in Klang Valley.

“This acquisition is aligned with EcoFirst's strategy of seeking high-value pockets of land that we can quickly develop and turn around in the short- to medium term. Banking on the 100% take-up rate success of the first phase of our Ampang Ukay development, we seek to enrich the lives of Shah Alam communities with prime-located homes and retail amenities through our pocket development expertise.”

He added that despite the soft property market, Ecofirst is confident that its attractively priced homes that are well-served by a comprehensive road network will be positively-received.