KUALA LUMPUR (Sept 23): Property developer EcoFirst Consolidated Bhd has proposed to acquire the remaining 49% stake in a subsidiary that owns 4.18 acres of land in Sungai Besi for RM78.4 million.
The stake in the firm, BCM Holdings Sdn Bhd, is held by Tan You Tiong, who is also a major shareholder of EcoFirst with a 14% equity interest.
In a filing with Bursa Malaysia, EcoFirst said approval has been obtained from the Kuala Lumpur City Hall for the change of zoning from industrial to commercial, for the land located in the Chan Sow Lin industrial estate.
BCM plans to develop 1,700 units of serviced apartments situated over a podium of retail lots on the land, with the project having a gross development value of about RM1 billion and a gross development cost of RM620 million.
“Barring any unforeseen circumstances, the group is expected to recognise a gross profit of approximately RM380 million across the estimated development period of four years,” said EcoFirst.
Shares of Ecofirst closed flat at 36 sen on Friday (Sept 23), giving the group a market capitalisation of RM417.52 million.