Kuala Lumpur: Eco World Development Group Bhd's (EcoWorld Malaysia) wholly-owned subsidiary, Paragon Pinnacle Sdn Bhd, has entered into a conditional sale and purchase agreement with Pearl Computing Malaysia Sdn Bhd for the disposal of a 23.55-hectare leasehold industrial land in Eco Business Park V for RM266.14 million cash. EcoWorld Malaysia informed the stock exchange that part of the proceeds would be used to complete the remaining main infrastructure development on the land. Additionally, a portion will be set aside for the repayment of bank loans for the land and to fund future development activities of Paragon Pinnacle.

According to BERNAMA News Agency, the exact quantum and timing for each of these utilisations have yet to be finalised and cannot be ascertained at this juncture. The proposed land sale at Eco Business Park V is seen as an opportunity for the group to realise the value of its matured industrial landbank and host another hyperscale data centre operator at its industrial parks.

Since the financial year 2024, EcoWorld Malaysia has entered into four notable sales of industrial land to market-leading data centre players. Collectively, the proceeds from these sales, including the proposed land sale, amounted to RM1.586 billion. The completion of these land deals will add to the group's cash position, including short-term funds, which stood at RM1.36 billion as of October 31, 2024.

In a separate filing, the group disclosed that it has signed an agreement with Pearl Computing to build and lease for an initial term of 20 years, with the possibility of renewal for up to 10 additional years. The total value of rent payable by the lessee to the lessor over the term is estimated to be up to RM4.8 billion.