KUALA LUMPUR (Feb 16): IGB Bhd (KL:IGBB) and its joint venture partner, Johor state-owned Southkey City Sdn Bhd, have agreed to extend the conditional period for their RM214.97 million purchase of two leasehold land parcels in Johor Bahru by three months.
The extension is to allow more time for the Ministry of Economy to review and approve the land deal, which was first announced in August 2025. All other terms in the sale and purchase agreement remain unchanged, the company said in its filing with Bursa Malaysia on Monday (Feb 16).
IGB’s subsidiary, IGB Corporation Bhd (IGBCB), has formed a joint venture company, Enrich Horizon Sdn Bhd (EHSB), with SCSB. IGBCB will hold a 70% stake in EHSB, with SCSB holding the remaining 30%. Under the plan, EHSB will take over the land currently owned by SCSB.
IGBCB will fund its RM173.1 million share using its own funds or borrowings. The money will be used to pay for the land. SCSB will use RM74.2 million from the land sale as its contribution.
The land, which is located next to IGB’s Mid Valley Southkey project, will be used for a mixed-use development along with existing and future assets in Southkey that could grow to match the scale of Mid Valley City in Kuala Lumpur.
IGB’s share price was up 1.61% at RM3.78 earlier, giving the group a market capitalisation of RM5.02 billion. Year to date, the stock is up 23.93%.