Eco World Development Group Bhd (EcoWorld Malaysia) has once again sealed a major land deal with Microsoft, selling 138.532 acres of industrial land within its Eco Business Park I development in Iskandar Malaysia, Johor for RM693.96 million in cash. This follows a previous sale in June last year, when EcoWorld Malaysia sold 123.141 acres of land in Eco Business Park VI to Microsoft for RM402.3 million to support the development of a hyperscale data centre.

Why Microsoft Is Investing in Johor

EcoWorld Malaysia views these land sales as proof that Malaysia, and particularly Johor, remains a prime destination for data centre investments. The company also sees it as a testament to the suitability of its industrial parks for high-tech operations like data centres.

According to a filing with Bursa Malaysia, the deal was made through Eco Business Park 1 Sdn Bhd, a wholly owned subsidiary of EcoWorld Malaysia, which entered into a conditional sale and purchase agreement (SPA) with Microsoft Payments (Malaysia) Sdn Bhd.

The land, which consists of 117 parcels, is part of a 612-acre development in Eco Business Park I. Eco Business Park 1 originally acquired the development rights for this land in 2014 for RM597.7 million.

How EcoWorld Malaysia Plans to Use the RM693.9 Million

EcoWorld Malaysia has outlined that the proceeds from this sale will be allocated in stages:

Industrial Business Growth & Future Plans

EcoWorld Malaysia has been seeing rapid growth in its industrial segment, with annual sales from this sector exceeding RM1 billion in FY2023 and FY2024.

The company credits this growth to a three-pronged strategy, allowing it to offer a diverse range of industrial products and cater to both local businesses and international players.

With the latest land sale to Microsoft, EcoWorld Malaysia has now sold a combined RM1.3 billion worth of land to data centre operators in less than a year.

What's Next for EcoWorld Malaysia?

With RM1.36 billion in cash reserves, EcoWorld Malaysia is in a strong position to:

Will This Boost EcoWorld Malaysia's Market Performance?

Despite the positive outlook, EcoWorld Malaysia's share price fell by eight sen (4.17%) to RM1.84 on Monday, bringing its market capitalization to RM5.45 billion. Year-to-date, the stock has declined by 14.02%, but analysts remain optimistic about its potential to secure more data centre deals in the near future.

If the proposed sale gets all the necessary approvals, it is expected to be completed by the first half of 2026.