EcoFirst gets more time to complete land purchase

PETALING JAYA: EcoFirst Consolidated Bhd's purchase of a 62 acres land worth RM145 million in Gombak, Selangor have been delayed by a further three-months due to technical issues on land alignment.
In a filing with Bursa Malaysia yesterday, EcoFirst said its wholly-owned subsidiary Curah Bahagia Sdn Bhd, and Zurich Insurance Malaysia Bhd, the seller, had mutually agreed to the extension.
Ecofirst has until Oct 31, 2015 to pay in full the balance purchase consideration with late payment interest at the rate of 6% per annum on the balance purchase consideration of RM130.5 million.
It is to pay the interest for the month of May, June and July 2015 on or before Aug 7, 2015.
"The extension of full payment on balance purchase consideration is due to further clarification and information pending from the relevant authorities pertaining to on land acquisition and alignment arising from the development of Sungai Besi-Ulu Kelang Elevated Expressway (SUKE) connecting to Middle Ring Road II (MRR2) Highway," it said in a statement.
According to EcoFirst, the planned elevated highway will positively affect certain parts of the land that fronts the Ulu Kelang portion of the MRR2. This would in turn affect EcoFirst's proposed development plans of which the board and the management will take appropriate steps and make necessary changes.
"We are currently awaiting all relevant information pending from authorities in order for us to finalise the full payment of this acquisition. Once this land is acquired, it will be the jewel in EcoFirst's crown, as it is one of the few large parcels left in the Klang Valley," said its group CEO Datuk Tiong Kwing Hee.
"With our plans for this land, our property development division can be expected to contribute positive earnings over the medium- to long-term," he added.