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EcoFirst buys Sungai Besi land for RM82m, to welcome new substantial shareholders

KUALA LUMPUR (April 7): EcoFirst Consolidated Bhd is acquiring a 51% stake in BCM Holdings Sdn Bhd, the owner of 4.18 acres of freehold land in Sungai Besi, for RM81.6 million.

The purchase consideration comprises RM1.63 million cash and the issuance of 228.5 million new EcoFirst shares at 35 sen apiece or RM79.97 million, the group said in a statement.

The issuance of the shares, it said, will result in the vendors of the stake — Yeoh Siok Choo and Tan You Tiong — becoming substantial shareholders in Ecofirst with a combined 20% stake.

“The purchase consideration of RM81.6 million represents a discount of RM983,000 (1.2%) to the adjusted net asset of BCM,” said EcoFirst.

The land, located in the Chan Sow Lin area, is slated for the development of 1,620 units of service apartments. The project has been approved by the Kuala Lumpur City Hall (DBKL).

EcoFirst said the project will have a gross development value of RM1.2 billion, with gross development costs of RM650 million, which the group intends to fund via bank borrowings and internally-generated funds.

EcoFirst chief executive officer Datuk Tiong Kwing Hee said the acquisition is in line with the group’s efforts to increase its presence in the property development space by increasing its land bank in the Klang Valley.

Shares of EcoFirst closed unchanged at 39 sen today, valuing the group at RM326.16 million.

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