EcoFirst to build 70-storey towers in Sg Besi

EcoFirst Consolidated Bhd will develop 70-storey towers comprising a total of 1,620 units of serviced apartment in Sg Besi, Kuala Lumpur and the estimated gross development value (GDV) is RM1.2 billion.

There will be a total of three towers (Block A, B, and C) and the development cost is about RM650 million, said its group chief executive officer Datuk Tiong Kwing Hee.

EcoFirst’s involvement in the project is by way of the company acquiring a 51 per cent stake in BCM Holdings Sdn Bhd.

The developer has entered into a conditional sale and purchase agreement with two individuals, Yeoh Siok Choo and Tan You Tiong, to acquire the stake in BCM for RM81.6 million, it said in a filing with Bursa Malaysia yesterday.

The purchase consideration of RM81.6 million represents a discount of RM983,000 or 1.2 per cent to the adjusted net asset of BCM.

After the completion of the acquisition, Yeoh and Tan will collectively become EcoFirst’s strategic investors with a combined substantial stake of 20 per cent of the enlarged capital of the company.

BCM owns 4.18 acres of freehold land (BCM Properties) located along Jalan Satu, within Chan Sow Lim. The land currently houses a vacant factory complex and a warehouse complex.

The development order (DO) and the building plan for BCM Properties have been approved by Kuala Lumpur City Hall (DBKL).

The land has an approved plot ratio of 1:9.3.

Block A has 35-storeys of serviced apartments (542 units); Block B has 62-storeys of serviced apartments (459 units); and Block C has 30-storeys of serviced apartments (520 units).

The three blocks will sit on top of an eight-storey podium car park including 99 units of serviced apartments within levels one to seven of the podium block.

There will be retail spaces at the ground and mezzanine levels, and two levels of basement car park.

According to the filing, the proposed development is expected to commence in the fourth quarter of this year and take up to four years to complete.

Tiong said the land is situated in a strategic location at the fringe of KL city centre. Notable landmarks nearby include the Fraser Business Park, the Royal Selangor Golf Club, the headquarters of RHB Bank Bhd, and VIVA Mall.

The Tun Razak Exchange covering an area of 70 acres and envisioned to be the World Islamic Financial Hub is 1.5km to the north of BCM Properties while Bandar Malaysia covering an area of 495 acres is 1km to the south.

Major connecting infrastructures servicing the land are Jalan Sungai Besi, Besraya Expressway, Jalan Loke Yew, Jalan Istana, SMART Tunnel, MEX Expressway, East-West Link Highway, and New Pantai Expressway.

The Chan Sow Lin Klang Valley Mass Rapid Transit (MRT2) and Light Rail Transit (LRT) are located some 500 metres away.

Tiong said apart from the strategic location of the land, the acquisition is also in line with the company’s expansion efforts to continuously increase its presence in the property development industry.

He said EcoFirst aims to increase its land bank in Klang Valley.

“We are confident that the off-take from the said development will be good due to its strategic location, product mix, and affordable pricing,” Tiong said.

Source: NST