KUALA LUMPUR (June 14): Eco World Development Group Bhd’s (EcoWorld) and China state-owned integrated construction group PowerChina Group Ltd will jointly develop Phase 2 of Eco Business Park V (EBP V) in Puncak Alam, Selangor.
At a signing ceremony held at the Bukit Bintang City Centre (BBCC) Sales Gallery, both parties inked a conditional joint-venture as well as sale and purchase agreement to facilitate the collaboration. The ceremony was witnessed by Finance Minister Lim Guan Eng.
EcoWorld chairman Tan Sri Liew Kee Sin said PowerChina Group is a globally renowned construction company that has an extensive network of clients who may be interested in investing in industrial real estate projects in Malaysia.
“This bodes well for our aims to make Eco Business Park V not only one of the best industrial parks in the country but also a key job centre offering quality employment opportunities for the people of Selangor,” Liew said.
PowerChina Group chairman Xia Jin said the joint-venture not only represents a milestone for both PowerChina and EcoWorld, but serves as a platform for “peace and cooperation, openness and inclusiveness, mutual learning and mutual benefit for both countries”.
“PowerChina’s venture into Malaysia aims for more collaborations and mutual benefit. In the meantime, we will ensure the success of this project in Selangor,” he said.
According to the agreements, a Malaysian incorporated subsidiary of the PowerChina Group will purchase a 117.35 acres of land from Paragon Pinnacle Sdn Bhd — a 60:40 joint-venture company owned by EcoWorld and the Employees Provident Fund (EPF), respectively — for a consideration of RM240.2 million.
Subsequently, both companies will establish a joint-venture company dubbed Eco World PowerChina Business Park Sdn Bhd, where PowerChina Group’s unit and Paragon Pinnacle will own 60% and 40% stake respectively, to develop the Phase 2 of EBP V. Paragon Pinnacle is a 60:40 subsidiary of EcoWorld and the EPF.
“This industrial park is only about 117 acres with a GDV (gross development value) of about RM850 million. It is a small project for now but it will be a good beginning for both of us.
“Collectively, we would share our expertise on how to develop the best industrial park in Malaysia,” noted Liew.
This industrial park is to cater to industries, manufacturers and people who want to relocate from China to Malaysia, hoping to avoid the US-China trade war, he added.
Meanwhile, EcoWorld group president and CEO Datuk Chang Khim Wah said the developer is targeting to obtain the approval from its shareholders and to complete the relevant administrative process within the next six months.
“Over and above what EcoWorld is offering in our business parks, we are sourcing industries from China that can contribute to the technology and skillsets in Malaysia,” he said.
Meanwhile, EcoWorld and PowerChina Group also inked a Memorandum of Understanding to jointly bid for infrastructure projects in Malaysia.