Ekovest buys land for EkoQuay project

PETALING JAYA: Ekovest Bhd is acquiring two parcels of land from Lim Seong Hai Holdings Sdn Bhd for RM26.77 million to undertake a mixed development project.

The two parcels of land are in Section 85, on the western side of Jalan Pahang, Kuala Lumpur. It will be amalgamated with Ekovest’s existing landbanks to develop the EkoQuay project, which consists of serviced apartments and retail and commercial blocks.

It was previously reported that EkoQuay would be a component of the KL River City project, which includes EkoGateway, EkoTitiwangsa and EkoRiver.

The project, which has a gross development cost of RM293.82 million, is expected to bring in a profit of RM103.34 million. Work will begin in 2018 and is slated to go on for 48 months.

Ekovest’s board of directors said in a filing with Bursa Malaysia that the group entered into a sale and purchase agreement (SPA) with Lim Seong Hai Holdings, a company which holds a substantial share in Ekovest, last Friday.

Datuk Seri Lim Keng Cheng, the managing director of Ekovest, is a major shareholder and director of Lim Seong Hai Holdings. As Lim Seong Hai Holdings is also a substantial shareholder of Ekovest, the acquisition is deemed a related party transaction, the board said.

A deposit of RM2.67 million will be paid to Lim Seong Hai Holdings upon the execution of the agreement and the remaining RM24.1million will be paid within three months of the SPA.

Ekovest will finance 30% of the acquisition with internally generated funds and the remaining with borrowings.