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- EcoWorld said the notes, which will be issued from time to time, were fully subscribed by a major local financial institution, reflecting “strong investor confidence in the group’s credit strength and the long-term prospects of the data centre project”.
KUALA LUMPUR (Nov 13): Property developer Eco World Development Group Bhd (KL:ECOWLD) has launched a RM1.878 billion unrated medium-term note (MTN) programme to partly finance the development and land acquisition for its build-to-lease data centre project in Selangor.
In a filing with Bursa Malaysia on Thursday, EcoWorld said the MTN programme was established under its wholly-owned subsidiary Quantum Alpha Sdn Bhd (QASB)—the entity spearheading the data centre venture. The first issuance, worth RM3.58 million, was completed on Thursday.
EcoWorld said the notes, which will be issued from time to time, were fully subscribed by a major local financial institution, reflecting “strong investor confidence in the group’s credit strength and the long-term prospects of the data centre project”.
QASB had in February signed a build-and-lease agreement with Pearl Computing Malaysia Sdn Bhd, an affiliate of Google, to develop and lease data centres within Eco Business Park V in Puncak Alam, Selangor.
Under the agreement, QASB will construct the shell and core structures of the data centres on 92.44 acres of land in accordance with the lessee’s specifications. The project, slated for completion in 2027, will be leased to Pearl Computing for an initial term of 20 years, with total rent estimated at up to RM4.8 billion, and includes a 10-year renewal option.
At that time, EcoWorld also announced the sale of 58.19 acres of industrial land within the same park to Pearl Computing for RM266.1 million.
The group reiterated on Thursday that it remains in discussions with potential institutional investors to participate in the data centre development. These discussions could lead to investors taking up stakes in QASB, though EcoWorld expects to retain up to 80% ownership in the unit.
Shares in EcoWorld closed unchanged at RM2.08 on Thursday, valuing the group at RM6.66 billion. Year to date, its share price has eased nearly 3%.
As Penang girds itself towards the last lap of its Penang2030 vision, check out how the residential segment is keeping pace in EdgeProp’s special report: PENANG Investing Towards 2030.
