Matrix Concepts proposes RM169.3m Kulai land buy for RM2.1b mixed development
Matrix Concepts Holdings has proposed to acquire 57 parcels of vacant agricultural land in Kulai, Johor for RM169.31 million. The developer plans a mixed development on the 174.77-hectare site with an estimated gross development value of RM2.1 billion.
PETALING JAYA (Oct 27): Matrix Concepts Holdings Bhd has proposed to acquire 57 parcels of vacant agricultural land in Kulai, Johor, for RM169.31 million cash, with plans for a mixed development carrying an estimated gross development value (GDV) of RM2.1 billion.
In a Bursa Malaysia filing on Tuesday (Oct 27), the developer said its wholly-owned subsidiary Matrix Concepts (Southern) Sdn Bhd had signed separate sale and purchase agreements (SPAs) for the parcels, spanning approximately 174.77 hectares (431.88 acres). The land is situated in Tempat Sengkang, Mukim Senai, Kulai. The vendors comprise corporate and individual landowners, as well as executors of deceased landowners' estates.
Matrix Concepts said the estimated GDV was based on its current feasibility assessment. The proposed acquisition would expand its landbank and support its pipeline of future developments. The company described the site as being located between Kulai town and the Sedenak Industrial Growth Corridor, with connectivity to the North-South Expressway, Senai International Airport and the wider Johor Bahru-Kulai network.
The purchase price works out to approximately RM9 per sq ft. According to the group, an independent valuation by Henry Butcher Malaysia indicated a market value of at least RM11 per sq ft. It said the agreed price reflected the land's composition of multiple parcels held under separate titles. The consideration was negotiated on a willing buyer-willing seller basis, taking into account feasibility studies, comparable developments, prevailing property values in the vicinity and the indicative valuation.
The acquisition will be financed through internally generated funds and bank borrowings, with borrowings providing the bulk of the funding. The group expects its gearing to increase to 0.49 times from 0.45 times for the financial year ending March 31, 2027 (FY2027).
The SPAs provide for deposits totalling 10 per cent of the consideration, with the remaining 90 per cent payable within three months after all conditions precedent are fulfilled. An automatic one-month extension is available, subject to late-payment interest of 8 per cent per annum. The conditions include, where applicable, title rectifications, Estate Land Board approval and court orders authorising sales by estate executors. They also require a new title for affected land reflecting the remaining area after a compulsory acquisition.
The conditions must be fulfilled within 12 months of the SPA date, unless the parties agree to an extension. All SPAs are interconditional and must complete simultaneously. If any agreement is terminated or fails to become unconditional, all will automatically terminate. Completion is expected within four months after the conditions precedent are fulfilled. Shareholder approval is not required. The proposed acquisition is not expected to materially affect the group's net assets or earnings per share for FY2027.
