ECM Libra acquires land in Johor to expand hospitality business
08 Sep 2023
ECM Libra Group Bhd plans to expand its hospitality business to the Desaru Coast by inking agreements to secure two pieces of leasehold land in Kota Tinggi, Johor, for RM36.86 million.
The group, which currently has six hospitality assets, said its wholly owned subsdiary ECM Libra Beachfront Sdn Bhd today signed a conditional agreement with Desaru Beach Parks Sdn Bhd (DBPSB) to acquire 4.44 hectares of leasehold land, which is slated for the development of villas, for RM19.81 million.
“The DBPSB land is located within the overall development of Desaru Coast and is expected to benefit from the local and international tourist market catchments that the destination attracts,” it said in a filing with Bursa Malaysia.
The group said the purchase consideration will be financed via internally generated funds and/or bank borrowings and the exact mix of funding would be decided at a later date, taking into consideration the gearing level of the group, interest costs as well as internal cash requirements for business operations.
Meanwhile, ECM Libra Group’s indirect wholly-owned subsidiary ECM Libra Desaru Sdn Bhd has inked a conditional agreement to acquire the entire equity interest in Desaru Beachfront 2 Sdn Bhd (DB2SB), which owns 3.68 hectares of leasehold land in Kota Tinggi, from Desaru Development Holdings One Sdn Bhd for RM17.05 million.
The land’s proposed usage in the future is for development into a beach resort or hotel or villa, it said.
The proposed purchase of the DBPSB land is expected to be completed in the first quarter of 2025 while the proposed acquisition of DB2SB is expected to be completed in the fourth quarter of 2023.