An article about EcoWorld yesterday received lots of attention. It was about their largest purchase to date. In fact I think in terms of the land price, it would be the largest that I have ever read thus far. EcoWorld was purchasing a piece of 2,200 acres land in Ijok, Kuala Selangor. Before I could publish it, there was an update that the land acquisition has met with a hurdle. It was due to the announcement from the Menteri Besar Incorporated (MBI) that one of the piece of the lands that they were trying to buy is involved in a dispute in court. Read it here: EcoWorld: RM1.1 Billion for 2,198.4 acres of land in Kuala Selangor Today, EcoWorld responded swiftly to allay fears of this hurdle.
It said that it will quickly meet up with MBI Inc to clarify on MBI’s announcement earlier. In fact, EcoWorld said that that particular piece of land that MBI was talking about is actually a separate piece of land from the one that EcoWorld was buying. They would be addressing any concerns. EcoWorld is also protected in the sense that land acquisition’s pre-condition include having the vendors obtaining the approval of the state authority of Selangor for the transfer of the lands to Paragon Pinnacle Sdn Bhd (PPSB) a wholly owned entity of EcoWorld. The vendors also have to ensure any legal disputes with the state authority of Selangor are resolved before the SPAs become unconditional.
An earlier statement from MBI said that the parcels of land that EcoWorld intends to buy is in the intended township of Alam Mutiara which is involved in a legal court proceeding with the state government. Thus, MBI said it would explore any legal relief of remedies, including the potential of an application for an injunction due to the actions of the vendors. In brief, it meant that MBI might throw a spanner into the land acquisition deal by EcoWorld until the dispute is settled.
I think the land deal would be beneficial not only to EcoWorld but also to the state of Selangor as well as the future buyers as long as everything is legally concluded. I would personally like to see the actual development plans too. I have passed Ijok twice and I think the distance is still acceptable. This is even in comparison to areas closer to KL city centre, for example, USJ. The duration taking into consideration the super jams are a huge deterrent for me. Even the prices in USJ today are very prohibitive too. The only thing going for it is because it is already a matured and established neighbourhood and those who have been staying there would definitely not move to a totally new neighbourhood. For new owners / buyers, they have no history to fall back to. Thus, think duration and not just distance and the options would suddenly open up. Happy waiting for this current issue to be cleared up.
written on 25 Sept 2015
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