“EcoWorld Malaysia is selling 138.5 acres of freehold industrial land in Iskandar Malaysia to Microsoft Payments for RM693.96 million. The sale strengthens EcoWorld’s cash reserves and supports its industrial growth strategy..“
Kuala Lumpur, 18th Feb 2025, 10.45am – Eco World Development Group Bhd (EcoWorld Malaysia) has announced the sale of 138.532 acres of freehold industrial land at Eco Business Park I in Iskandar Malaysia to Microsoft Payments (M) Sdn Bhd for RM693.96 million.
Strategic Land Sale to Boost Infrastructure and Working Capital
In a filing with Bursa Malaysia, EcoWorld Malaysia stated that a portion of the proceeds will be allocated to completing the remaining infrastructure development on the site and covering associated expenses within 24 months of the sale and purchase agreement. The final breakdown of fund utilization has yet to be determined. The remaining balance will be directed towards the company’s working capital.
Ecoworld sell a industrial land to Microsoft with RM693.96 million.
“The timing of the fund utilization will depend on the actual amount available and working capital requirements at the time,” the company noted, adding that any unutilized funds will be placed in financial institution deposits or short-term money market instruments to generate additional revenue.
Strengthening Net Assets and Gearing
EcoWorld Malaysia expects the transaction to enhance its net assets and reduce gearing, thanks to surplus cash after infrastructure costs and related expenses are accounted for. However, the final quantum of surplus cash will depend on actual development costs incurred at the time of completion.
Rapid Growth in Industrial Segment
The company highlighted that its industrial business segment has experienced substantial growth, with annual sales exceeding RM1 billion in both financial years 2023 (FY23) and 2024 (FY24). This success is attributed to EcoWorld Malaysia’s three-pronged strategy, which allows it to cater to small and medium enterprises, large industrial players, and multinational corporations.
Strengthening Malaysia’s Position as a Data Centre Hub
The sale marks the second strategic land deal between EcoWorld Malaysia and Microsoft for the development and operation of a data centre in Iskandar Malaysia. The company emphasized that the transaction underscores Malaysia’s attractiveness as a key destination for hyperscale data centre operators, reinforcing EcoWorld Malaysia’s industrial parks as prime locations for high-tech businesses.
Future Expansion and Recurring Income Growth
EcoWorld Malaysia stated that the sale will further strengthen its cash reserves, which stood at RM1.36 billion as of October 31, 2024. The company is in a strong position to expand its land bank and explore new strategic opportunities in the commercial and industrial sectors.
“With the aim of establishing solid recurring income sources, this initiative will enhance future cash flow and earnings while complementing the group’s revenue from property development sales,” the company said.
The transaction is expected to be completed in due course, solidifying EcoWorld Malaysia’s role as a key player in the industrial and digital economy landscape.
