KUALA LUMPUR (May 25): Matrix Concepts Holdings Bhd is on track to achieve its sales target of RM1 billion for its 2018 financial year ending March 31.

“We target sales of RM1 billion this year, meaning that each quarter we have to achieve an average of RM250 million sales. But as of last week, we have touched close to RM450 million before the end of the first quarter,” said its group managing director and CEO Datuk Lee Tian Hock.

“And I’m very confident that by the end of this month, we would have achieved our target for the first two quarters [of our financial year],” said Lee.

“This year, we have lined up about RM1.5 billion worth of launches. So I think even though we have set a sales target of RM1 billion, it is not beyond our reach to achieve RM1.2 billion sales instead,” he told reporters after a signing ceremony between Matrix Concepts and Maybank Investment Bank Bhd (Maybank IB) today.

Matrix Concepts signed the agreeement in relation to the establishment of Islamic Commercial Papers and/or Islamic Medium Term Notes (sukuk) programme with a combined programme limit of up to RM250 million in nominal value.

The inaugural sukuk offering is expected to be launched with the first issuance taking place as early as June this year. Proceeds raised may be used for shariah-compliant purposes comprising, among others, the financing of Matrix Concepts future investments, working capital requirements, capital expenditure and other general corporate purposes.

“This is a very momentous occasion because it is the first time we are entering the debt market since our listing in 2013. This sukuk programme will definitely create a war-chest for us to move forward in terms of landbanking.

“There has been a lot of uncertainty in the market but we are confident in our operations. This is a very positive development in terms of the financing structure for Matrix Concepts,” said its chairman Datuk Mohamad Haslah Mohamad Amin.

“Our market capitalisation when we went public in 2013 was about RM600 million, and as of today, the figure has grown to RM1.5 billion,” he added.

Mohamad Haslah expected growth to continue up to at least 2020. Matrix Concept’s landbank stands at about 2,000 acres across Malaysia.

The developer is planning to launch residential projects in the Klang Valley in the near future, depending on the market situation.

“We have 100% take-up rate in a few hours for our property launches in Seremban. It’s a question of buyers wanting value, so it’s how we create our product. There’s always demand for housing,” said Mohamad Haslah.

Lee concurred, saying the demand for housing is always there, depending on the location and affordability.

“We are always delivering affordable homes, which are not short on demand. We are very confident with our landed properties because we know that our products are within the affordable range,” Lee said.

As of last week, the developer’s total unbilled sales stands at RM1.1 billion.

This story first appeared in TheEdgeProperty.com pullout on May 26, 2017. Download TheEdgeProperty.com pullout here for free.

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