KUALA LUMPUR (Jan 27): Ekovest Bhd (KL:EKOVEST) has extended by three months its proposed acquisition of four strategically located parcels of land along the Johor Bahru–Singapore RTS Link, with the new deadline set for April 27, 2026, as negotiations continue.
In a Bursa Malaysia filing, the company stated that the extension allows additional time for review and discussion between Ekovest and the vendors. The acquisition, originally planned for April 2024, has now been extended five times since the initial 2023 agreement.
The binding term sheet agreements, signed on Oct 27, 2023, cover a total of 15.82 acres and represent a proposed RM310 million acquisition for potential transit-oriented development projects.
The first transaction involves two freehold parcels totaling 6.18 acres, currently housing Danga City Mall and an expo building, acquired from Danga City Mall Sdn Bhd for RM210 million. The second includes two leasehold parcels spanning 9.64 acres from Khazanah Melati Sdn Bhd for RM100 million.
Both vendor companies have close ties to Ekovest’s major shareholder Tan Sri Lim Kang Hoo. Lim holds 86.071 million redeemable preference shares in DCMSB and has extended a loan to Khazanah Melati. He maintains a 20.059% direct and 11.225% indirect interest in Ekovest.
Under the terms, Ekovest may acquire the land either directly or via full share purchases of DCMSB and Khazanah Melati, with payment expected to be settled through the issuance of new Ekovest shares at 60 sen each. Ekovest’s shares have fallen approximately 55%, closing at 27 sen, giving the company a market capitalisation of RM800.7 million.
The acquisition is intended to strengthen Ekovest’s property development and investment portfolio, particularly by tapping into the growth potential and increased connectivity afforded by the RTS Link to Singapore.
The deal follows the recent lapse of Ekovest’s proposed RM1.15 billion acquisition of Credence Resources Bhd from Lim. The heads of agreement for that transaction expired on Jan 26, 2026, after nine extensions since its initial announcement.
From a strategic property perspective, developments along key transit corridors like the Johor Bahru–Singapore RTS Link are expected to complement demand trends in Malaysia’s real estate markets, including commercial property in KL, high-grade office space in Bukit Jalil, industrial land in Selangor, modern factory developments in Puchong, and established industrial property in the Subang area, all of which benefit from enhanced connectivity and long-term growth potential.
Philippines