Paragon Pinnacle Sdn Bhd, a subsidiary of EcoWorld, agreed to sell 58.187 acres of industrial land in Eco Business Park V to Pearl Computing, an affiliate of Google.
KUALA LUMPUR (Feb 25): Eco World Development Group Bhd (KL:ECOWLD) said on Tuesday it has signed agreements to sell a land for RM266.1 million and build a data centre on another land to be leased to Pearl Computing Malaysia Sdn Bhd, an affiliate of Google.
In a Bursa Malaysia filing on Tuesday, Paragon Pinnacle Sdn Bhd, a subsidiary of EcoWorld, agreed to sell 58.187 acres of industrial land in Eco Business Park V to Pearl Computing.
Meanwhile, in a separate filing, EcoWorld said its other subsidiary, Quantum Alpha Sdn Bhd (QASB), signed an agreement with Pearl Computing to develop and lease data centres on 92.44 acres within the same park.
The project is scheduled to be completed in 2027, EcoWorld said.
The latest deal, the fourth sale of industrial land to data centre operators since 2024, is part of EcoWorld’s strategy to monetise its industrial land bank while attracting high-value tenants.
Together, proceeds from the four transactions would total RM1.586 billion, and add to EcoWorld’s cash position once they are completed.
“EcoWorld intends to quickly redeploy this substantial boost to its cash reserves to expand its land bank for development while actively pursuing strategic opportunities to grow its portfolio of recurring income assets in a meaningful manner,” the company said.
The agreement with Pearl Computing is for an initial term of 20 years, which could be renewed for up to 10 additional years. The lease will provide stable recurring income, said EcoWorld chief executive officer Datuk Chang Khim Wah.
“This is an ideal asset to serve as the cornerstone of EcoWorld’s recurring income aspirations, as it will deliver sizeable fixed rental income revenues over the next 20 to 30 years,” he noted.
Further, there are ongoing discussions with “various parties” to jointly undertake the project, which will result in EcoWorld eventually owning up to 80% of QASB building the project, Chang added.
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