This article first appeared in The Edge Malaysia Weekly on November 9, 2026 - November 15, 2026

Country Heights Holdings Bhd (KL:CHHB) has failed to draw bidders for two of its forced auctions this year. The latest was for a 667,147 sq ft leasehold parcel in Mukim Petaling owned by Mines Waterfront Business Park (in liquidation) that had a reserve price of RM152.77 million.

This came after the unsuccessful auction of a piece of the company’s land in Kajang for RM69.85 million in March last year. Even when the reserve price was lowered to RM55 million in September this year, the sale of the 2.6ha freehold plot attracted no one and the auction was cancelled.

The latest auction was initiated by MBSB Bank Bhd while the first was called by CGS International Capital Singapore Pte Ltd to recover defaulted loans. These properties were being sold through a court-ordered process.

So why are potential buyers staying away?

Country Heights, which has been in default to MBSB since August 2023, has largely been loss-making over the last few years. The group has also slipped into penny stock category and had a market capitalisation of only RM45.2 million based on its share price of 12 sen at market close last Thursday.

Potential buyers would be concerned about delays in securing vacant possession and inheriting existing encumbrances.

The leasehold land involves a bundle of completed office blocks, unsold units, unfinished buildings and vacant land. So any prospective buyer would need to complete the construction and sell the stock in a soft office market.

Buyers may also be holding out for a deeper discount as reserve prices in Malaysia’s forced auctions typically fall in later rounds. The lease for the Mukim Petaling land, which is said to end in 2091, may also play a role this time around.

These failed auctions also suggest a mismatch between lender expectations and what buyers are willing to pay for troubled and complex assets. Unless reserve prices fall meaningfully or a strategic buyer is found through a private sale, it would not be surprising to see more failed auctions involving CHHB assets.

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