Matrix Concepts to buy 432 acres in Kulai at RM9 psf

Matrix Concepts Holdings Bhd, the Negeri Sembilan developer behind Sendayan and Malaysia Vision Valley, has signed agreements to buy 57 agricultural parcels in Tempat Sengkang, Mukim Senai, Kulai, Johor, for RM169.31 million cash. That is about RM9 per sq ft for 431.88 acres (174.77 hectares). It plans a mixed development with an estimated gross development value of RM2.1 billion, half of it industrial. Analysts say the real land cost will be far higher once the land is converted and serviced.

The deal

• Buyer: the wholly owned subsidiary Matrix Concepts (Southern) Sdn Bhd, through 14 sale and purchase agreements signed on 27 October 2026: two with companies, eight with executors of deceased owners' estates and four with individuals. Matrix said none is related to its directors or major shareholders
• Land: freehold, 18.81 million sq ft, between Kulai town and the Sedenak Industrial Growth Corridor. The company says it is about 43km from Johor Bahru, near the North-South Expressway and Senai International Airport, with ETS rail to JB Sentral
• Price: Henry Butcher Malaysia (Johor) valued the land at RM206.94 million, about RM11 psf, as at 22 September, so Matrix is paying about 18% less. It said the price reflects buying many parcels held under separate titles
• Funding: a 10% deposit, with the rest due within three months of the conditions being met. About RM143.9 million, or 85%, will be borrowed, lifting gearing from 0.45 to 0.49 times
• Conditions: title rectifications, Estate Land Board approval, court orders allowing executors to sell, and new titles for three lots partly taken by compulsory acquisition (about 10 acres, excluded from the valuation). They must be met within 12 months. All 14 agreements are interconditional, so if one fails, all fail
• No shareholder vote: the deal's highest percentage ratio is 7.26%

What Matrix plans

• GDV split (filing, 30 October): industrial RM1.071 billion (51%), residential RM609 million (29%) and commercial RM420 million (20%), over five to eight years
• Industrial first: management plans to sell industrial products for the first two to three years before residential and commercial, the same order it used at Malaysia Vision Valley. Plans include semi-detached factories and industrial lots for conventional industries and multinationals. Industrial could take 20% to 50% of the land, and data centres are not an immediate priority, BIMB Securities said
• Timing: the first launch is targeted for Matrix's financial year 2029, which runs from April 2028 to March 2029. Development costs, dates and approvals "could not yet be determined", the filing said

The real land cost

• Nearby deals: RHB Research said recent land deals around Kulai were RM15 to RM20 psf. Hong Leong Investment Bank (HLIB) named two: the land for Mah Sing and KLK's MS Industrial Park @ Kulai, also in Tempat Sengkang, at about RM15 psf in December 2025, and a Sime Darby Property purchase at RM17.25 psf in August 2026
• After conversion and infrastructure: management puts the effective cost at about RM25 psf, RHB said, as reported by BusinessToday. BIMB Securities estimates RM34 to RM35 psf, depending on the approved plan and the conversion premium
• Location: HLIB said the less developed site may need more infrastructure spending and draws on a smaller buyer catchment. Competition is rising as Sime Darby Property, Genting and Paragon Globe also develop in Kulai

What analysts said

• HLIB: Buy, target price RM1.83. It estimates average net profit of RM47.3 million a year over eight years from financial year 2029
• RHB: Buy, target cut to RM1.45 from RM1.65. About RM145 million of new borrowing lifts net gearing to about 0.40 times from 0.33, so cash-flow planning matters with a hospital and commercial centre also planned
• BIMB: Buy, target RM1.49. Johor's share of revenue could rise from about 5% to 15–20% over time
• MBSB Research: Buy, target RM1.33