KUALA LUMPUR: Eco World Development Group Bhd (Ecoworld Malaysia) has announced that its wholly-owned subsidiary Eco Botanic 3 Sdn Bhd has struck a deal to purchase about 240.314 acres of land in Pulai, Johor Bahru, for RM450.13mil, and develop it into a mixed-used project.

       According to the property group, the land belonging to River Retreat Sdn Bhd is located next to the group's Eco Botanic and Eco Botanic 2 townships in Iskandar Malaysia.

       "It is proposed to be developed into a mixed residential and commercial township development suitable for both first-time home buyers and M40 group to be known as Eco Botanic 3," said the group in a filing with the stock exchange.

       Ecoworld Malaysia said it inked a conditional development agreement with Permodalan Darul Ta’zim Sdn Bhd (PDT) whereby PDT would nominate Eco Botanic 3 to purchase and develop the land.

       It also signed a conditional sales and purchase agreement with River Retreat for the purchase of the 13 parcels of freehold land.

       River Retreat is a unit of Iskandar Coast Sdn Bhd, which is 80%-owned by Iskandar Investment Bhd and 20%-owned by Iskandar Waterfront Holdings Sdn Bhd.

       Ecoworld said it will pay PDT RM30mil as a nomination fee, which is expected to be funded internally and from cash generated from the proposed development.

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       It will also pay PDT a sum equal to 20% of the profit after tax of Eco Botanic 3 from each phase of the proposed development, to be paid within three months of the auditing of the finals accounts of each phase.