Latest news with #EcoBusinessParkVII
New Straits Times
3 days ago
- Business
- New Straits Times
EcoWorld Malaysia's EBP VII draws early interest from MNCs: RHB Research
KUALA LUMPUR: Eco World Development Group Bhd (EcoWorld Malaysia) is preparing to launch Eco Business Park VII (EBP VII) in Malaysia Vision Valley 2.0, Negeri Sembilan, by year-end, RHB Research said. Citing president and chief executive officer Datuk Chang Khim Wah, the research house noted that the marketing team has already received strong interest from multinational corporations (MNCs) in China, Europe, Japan and Malaysia, particularly for smaller industrial land plots. EBP VII is also being positioned as a potential site for future data centre development. "Given its track record in attracting big MNCs at all its EBPs, we believe the company will similarly surprise the market on its deliveries for EBP VII," RHB Research said. Meanwhile, momentum is building at EBP V, where EcoWorld is expected to award the construction contract for its data centre within the next one to two months. The project is targeted for completion by the third quarter of 2027 (3Q27), it added. Rental contributions are projected to begin in 4Q27. The facility will be leased to Pearl Computing Malaysia under an initial 20-year term. RHB Research said that based on estimates, EcoWorld Malaysia's 80 per cent stake could generate annual lease income of RM100 million to RM110 million at the profit-before-tax level. "A 20 per cent equity partner is expected to be announced in the near term." RHB Research is bullish on EcoWorld Malaysia, maintaining a BUY call with a target price of RM3.00, representing a potential 41 per cent upside and a forecast dividend yield of around 4 per cent for the fiscal year 2026 (FY26). Confidence in EcoWorld Malaysia's earnings trajectory and property sales outlook was reinforced during a recent corporate luncheon with Chang, who highlighted strong momentum in both industrial and residential sales – particularly within the group's projects in Iskandar Malaysia, RHB Research said. While FY26 earnings are expected to benefit from earlier industrial land disposals, FY27 will likely be fuelled by contributions from three upcoming pipeline projects – Eco Botanic 3, EBP VII, and Eco Radiance – alongside maiden recurring income from a new data centre venture. RHB Research said in a note that demand for EcoWorld Malaysia's maiden Eco Botanic 3 launch has been overwhelming. It said that although management initially planned to release only Precinct 1 units, strong demand prompted the opening of Precinct 2 as well – both precincts featuring two-storey terraces starting at RM882,000 per unit. By launch, some 1,100 ticket numbers were taken for just 700 available units, leaving the project oversubscribed by roughly 1.6 times, the research firm said.
New Straits Times
21-04-2025
- Business
- New Straits Times
PublicInvest deems EcoWorld Malaysia's RM572.8mil land deal in Negri Sembilan fair
KUALA LUMPUR: Public Investment Bank Bhd (PublicInvest) views Eco World Development Group Bhd's (EcoWorld Malaysia) RM572.8 million land acquisition in Negri Sembilan as fair, representing about 19.4 per cent of the proposed industrial development's total gross development value (GDV) of RM2.95 billion. At this juncture, PublicInvest said there are no changes to its earnings estimates for EcoWorld Malaysia, pending further details on the project's official launch. The research house has maintained a Neutral rating on the stock, with a target price of RM1.90, reflecting a 10 per cent premium to book value. This outlook is supported by the developer's track record of consistent profitability and attractive dividend yield. EcoWorld Malaysia has officially entered into a joint venture with SD Guthrie Bhd and Negri Sembilan's state investment arm, NS Corporation, following the signing of a formal agreement last Friday. This move formalises the memorandum of understanding announced in late 2024. The three parties will collaborate to develop a 1,166-acre industrial park in Bukit Pelanduk, Negri Sembilan. The project, to be named Eco Business Park VII, will be undertaken by a newly established joint-venture company. Under this structure, EcoWorld Malaysia will hold a 55 per cent stake, SD Guthrie Land Ventures Sdn Bhd (a wholly owned subsidiary of SD Guthrie) will own 30 per cent, while NS Corporation will take the remaining 15 per cent. This marks EcoWorld Malaysia's maiden foray into Negri Sembilan's industrial park segment. The site is strategically located within the Malaysia Vision Valley 2.0 economic corridor and is envisioned as a fully integrated, master-planned industrial hub with complementary commercial components. Eco World Project Management Sdn Bhd, a wholly owned subsidiary of EcoWorld Malaysia, is expected to be appointed as the development manager. PublicInvest highlighted that industrial development remains a key revenue stream for EcoWorld Malaysia. From FY2014 through to Feb 28, 2025, the group has recorded cumulative industrial sales of RM6.7 billion across its Eco Business Parks. To date, more than 1,400 local and international firms operate within these parks. In the first four months of FY2025 alone, EcoWorld Malaysia recorded close to RM1 billion in industrial sales, driven by two major land transactions signed in February 2025 with global technology giants. It sold 138.532 acres in Eco Business Park I to Microsoft Payments (Malaysia) Sdn Bhd, and 58.187 acres in Eco Business Park V to Pearl Computing Malaysia Sdn Bhd. "As such, we believe the group's track record in the execution of industrial parks speak for itself and we are positive that demand for its industrial offerings would continue to be healthy," PublicInvest said.
