Eco Horizon Sdn Bhd, a wholly-owned unit of Eco World Development Group Bhd, has signed a conditional agreement with Batu Kawan Development Sdn Bhd (BKDSB) to acquire a piece of land in Seberang Prai, Penang, for RM681.99 million.

In a filing to Bursa Malaysia on Tuesday, Eco World said its unit has also signed a revocation and rescission agreement with BKDSB and Silver Setup Sdn Bhd (SSSB), a wholly-owned unit of Malton Bhd, to revoke and rescind the joint development agreement made between both companies in Oct 10, 2012.

Pursuant to the revocation agreement, Eco Horizon said, it has agreed to pay SSSB a revocation sum of RM50 million.

Eco World said Eco Horizon also signed an agreement with BKDSB and Penaga Pesona Sdn Bhd to acquire 30.32ha at the same location for RM143.25 million.

“The proposed acquisitions will provide Eco World with a replacement opportunity in the form of prime land of a similar size in the fast-growing industrial/commercial and residential hotspot.

“It will also enable the group as a whole to achieve an optimal geographic spread of its total landbank by acreage and gross development value in a manner which reflected the demographic structure of the country’s population by size and relative income levels,” it said.

In a separate filing, Malton said the proposed revocation represented an opportunity for SSSB to exit the joint venture for a one-off compensation sum of RM50 million.

“Further, SSSB would be able to fully recover all advances made to BKDSB under the agreement which could be re-channelled to Malton and its units’ other ongoing property development projects,” it said.

Source: Bernama