KUALA LUMPUR (Oct 27): Matrix Concepts Holdings Bhd (KL:MATRIX) has entered into various sale and purchase agreements for 57 parcels of agricultural land for RM169.31 million cash.

In a filing with Bursa Malaysia, the Seremban-based property developer said the acquisition aims to expand the group’s land bank and support its long-term growth strategy. 

Located in the Kulai-Sedenak growth corridor, the land will be used for mixed development with an estimated gross development value (GDV) of RM2.1 billion.

At an average price of RM9.00 per sq ft, the acquisition is expected to strengthen the group’s presence in a growing industrial area, create business and employment opportunities, and contribute to local economic growth.

All parcels of land, which make up a total area of 174.77 hectares, are all located in Johor, between Kulai and Sedenak Industrial Growth Corridor, connected to the North-South Expressway and Senai International Airport.

The agreements are between the group’s wholly owned subsidiary Matrix Concepts (Southern) Sdn Bhd and various vendors, including individual landowners, corporate landowners, and executors of the estates of deceased landowners.

Matrix Concepts said it intends to use the land to expand its existing land bank and support the group’s long-term growth strategy for a sustainable pipeline of future developments.

An independent valuation of the land was conducted by Henry Butcher Malaysia, a real estate consultant, who said the land’s market value was at least RM11 per square foot and is being acquired at a purchase price of about RM9 per square foot.

Should the deals go through, Matrix Concepts expects these acquisitions to bring a slight increase in the gearing ratio of the group’s financial year ending March 31 2027, from 0.45 times to 0.49 times, as the purchase is intended to be financed mainly through bank borrowings.

Matrix Concepts Holdings’ shares fell by 2.91% on Tuesday to RM1 per share, valuing the company at RM1.88 billion.