Maybank IB Research noted that the QEBP site works are progressing well, with 40% of the overall earthworks completed to date.
PETALING JAYA: Eco World Development Group Bhd
’s (EcoWorld Malaysia) Quantum Edge business park (QEBP) is expected to be a positive earnings driver for the company.
Maybank Investment Bank (Maybank IB) Research was impressed by the project’s strategic location, a mere six-minute drive from the Kulai toll and 25 minutes from the Sedenak toll.
The availability of Tenaga Nasional Bhd pylons on site serves as another attractive factor for data centre (DC) developments.
The research house said preliminary approvals for power and water supply are required before finalising any land deals with DC players, but QEBP has already secured sufficient power and water supply.
“We visited EcoWorld Malaysia’s 404-acre QEBP in Kulai, Johor, last week.
“With secured land deals with Microsoft Corp and Princeton Digital Group, QEBP is expected to start contributing to earnings from financial year 2025 onwards.
“Management is actively negotiating with DC operators and could secure one to two DC-related land sales by the end of 2024/2025,” it said in a report yesterday.
Maybank IB Research noted that the QEBP site works are progressing well, with 40% of the overall earthworks completed to date.
Once the earthworks are finished, infrastructure works are expected to commence by the end of 2024.
To recap, EcoWorld Malaysia acquired 403.8 acres of freehold agricultural land in Kulai for RM211.1mil cash or RM12 per sq ft from IOI Prima Property Sdn Bhd, 99.9% owned by IOI Properties Group Bhd.
It was being developed as Eco Business Park VI (EBPVI), catering to medium and light industrial businesses.
“In early June 2024, EcoWorld Malaysia secured Microsoft as an anchor tenant for the industrial park.
“Microsoft acquired 123 acres of land in EBPVI for RM402mil (or RM75 per sq ft).”
EcoWorld Malaysia unveiled its industrial products revenue pillar, Quantum, in early August 2024 and renamed EBPVI to QEBP.
In August this year, the group secured another DC player, Princeton Digital Group, which acquired 57 acres of land in QEBP for RM224mil or RM90 per sq ft.
Maybank IB Research noted that QEBP’s remaining landbank and gross development value stood at 132.6 acres and RM1bil, respectively, as at August 2024.
The brokerage maintains its “buy” call on EcoWorld Malaysia, with a target price of RM1.96.
