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 MATRIX 5236 MATRIX CONCEPTS HOLDINGS BERHAD buys 1,382-acre land in Sime Darby’s MVV2.0 for RM460 mil for joint development with NS Corp

KUALA LUMPUR (Aug 24): Matrix Concepts Holdings Bhd is buying 1,382.2 acres of land in Malaysia Vision Valley 2.0 (MVV2.0), Negeri Sembilan from NS Corporation (NS Corp), which had taken over the parcel from Sime Darby Bhd, for RM460 million.

Matrix Concepts, via its indirect subsidiary MCHB Development (NS) Sdn Bhd, will also set up a joint venture company with NS Corp on a 85:15 basis called N9 Matrix Development Sdn Bhd to develop the land, it said in a bourse filing.

In the filing, the developer said it had entered into a sale and purchase agreement (SPA) with NS Corp on Wednesday (Aug 24).

It will pay the purchase consideration through a mix of internally-generated funds and bank borrowings.

In a separate statement, Matrix Concepts said it plans to build a township with a gross development value of RM7 billion that is similar to its Sendayan brand of developments.

The land, located in Mukim Labu, Seremban, will feature a “balanced mix of residential, commercial, and retail elements to fulfil the growing demand from Klang Valley, attracted by the value proposition Seremban offers and increased flexibility for work-from-home arrangements.

“The group aims to introduce components of hospitality, education, healthcare and support services attributes at the township, slated to be developed over a 10-year period, with the first property launch expected in three years’ time,” it said.

The land is part of the 8,796 acres Sime Darby owns in the 379,087-acre MVV2.0.

NS Corp had on Wednesday also entered into an SPA with Sime Darby’s indirect wholly-owned subsidiary Kumpulan Sime Darby Bhd (KDSB) to purchase the land for RM460 million cash, Sime Darby said in a filing with Bursa Malaysia.

Sime Darby noted that the disposal is expected to be completed in the financial year ending June 30, 2024 (FY24), barring any unforeseen circumstances.

“KDSB is expected to record a net gain on disposal of approximately RM57 million [in] FY24. Sime Darby group is expected to record a net gain of disposal of approximately RM412 million (which translates into a gain per share of six sen) in FY24.

It said that proceeds from the sale will be utilised for the group’s working capital requirements, capital expenditure and repayment of borrowings.

Matrix Concepts closed 5 sen or 2.18% higher at RM2.34 on Wednesday, valuing the group at RM1.95 billion.

Shares in Sime Darby finished four sen or 1.7% lower at RM2.31, giving it a market capitalisation of RM15.73 billion.

http://www.theedgemarkets.com/article/matrix-concepts-buys-1382acre-land-sime-darbys-mvv20-rm460-mil-joint-development-ns-corp

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