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Eco World Development Group Bhd's subsidiary, Mutiara Balau Sdn Bhd, has terminated its proposed acquisition of a freehold commercial land parcel in Mukim Semenyih, Ulu Langat, Selangor. The 22.73-acre land was to be purchased for about INR82.19 million from Boustead Balau Sdn Bhd, with Boustead Properties holding a minority stake in the unit. The SPA, signed last year, required certain conditions to be met within a specified period. The land was intended to expand commercial offerings in EcoWorld's Eco Radiance township and support the township's long-term development plans.
Eco World Development Group Bhd's 81%-owned unit, Mutiara Balau Sdn Bhd, has officially terminated its plan to acquire a freehold commercial land parcel in Mukim Semenyih, Ulu Langat, Selangor. The land measures approximately 92,000 square metres (around 22.73 acres) and was set to be purchased from Boustead Balau Sdn Bhd for about INR82.19 million. Boustead Properties Bhd holds a 19% stake in the subsidiary, which manages the transaction. Advertisement
The conditional sale and purchase agreement (SPA) was executed in October last year, outlining that the land would be acquired on an "as is where is" basis, free from encumbrances, with vacant possession and subject to title conditions. The acquisition was conditional on approvals and fulfillment of payment obligations within a specific period. Since those conditions were not fully met, the unit decided to terminate the deal.
This parcel was located next to EcoWorld's ongoing Eco Radiance township, a mixed-use development in Semenyih that spans around 847 acres with an estimated gross development value of INR4.6 billion. Eco Radiance is planned to include residential neighborhoods, commercial components, and retail facilities. The newly proposed land was intended to strengthen the commercial component, potentially providing additional space for shopoffices, serviced apartments, and other retail offerings.
Funding for the acquisition was to be arranged through a combination of shareholder advances, internal funds, and project-level borrowings, with staged payments stipulated under the SPA. The deal also required approval from relevant regulatory authorities. The termination shows that while the land was strategically positioned to complement the township's commercial layout, procedural or timing issues prevented the completion of the transaction.
Source Reuters
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