Malton unit to acquire 3.72-acre Johor Bahru development site for RM97.2 mil as part of landbank replenish strategy

PETALING JAYA (June 3): Malton Bhd's wholly owned subsidiary, Bukit Rimau Development Sdn Bhd (BRDSB), has entered into a conditional sale and purchase agreement (SPA) to acquire a 3.72-acre freehold development parcel in Bandar Johor Bahru for RM97.23 million cash, as part of the group’s landbank replenishment strategy.

In a Bursa Malaysia filing today, Malton said BRDSB signed the SPA with Tanjung Nakhoda (M) Sdn Bhd (TNSB) to acquire the land, which forms part of a larger 35.25-acre master parcel held under HSD 640514 PTB 24790 and forms part of the integrated W City Larkinton development. 

The parcel, measuring about 3.72 acres (approximately 162,043 sq ft), is located near the Johor Golf & Country Club in Larkin and is strategically connected to Johor Bahru city centre via Jalan Tun Abdul Razak.

The purchase consideration of RM97.23 million, or roughly RM600 psf, was arrived at on a willing-buyer willing-seller basis and represents a marginal 0.08% discount to the market value of RM97.30 million ascribed by independent valuer Jones Lang Wootton in a report dated May 5, 2026. 

Malton said the price is considered reasonable in view of the site’s development potential, with a preliminary estimated gross development value (GDV) of about RM950 million for a serviced apartment–focused scheme based on the group’s internal assessment.

The company said its preliminary assessment indicates that the land could be developed into residential serviced apartments. However, details including the project name, number of units, development cost, funding structure and construction timeline have yet to be finalised pending the necessary development approvals. 

The site is located within the integrated commercial development of W City Larkinton, which comprises shopping malls, serviced apartments, retail and commercial lots as well as convention facilities, and is situated approximately 6km from Johor Bahru city centre, the Bangunan Sultan Iskandar Customs, Immigration and Quarantine Complex, and the Johor Bahru–Singapore Rapid Transit System (RTS) Link development in Bukit Chagar.

Payment for the land will be made in stages, including a RM19.45 million deposit upon signing, followed by two RM9.72 million instalments tied to the execution of a limited power of attorney and the securing of a 7.0 plot ratio approval, with the RM58.34 million balance due within three months of all conditions precedent being fulfilled, extendable by another three months with interest. 

The SPA is conditional on the issuance of a separate title for the land and, if required, state authority approval for the transfer from TNSB to BRDSB.

Malton said the proposed acquisition provides an opportunity to secure a prime site in Johor Bahru, which has seen increasing development activity in recent years. It added that the move complements the group’s recent project handovers and launches, including Mutiara Hilltop in Puchong, Nova Business Hub in Sungai Buloh, Mutiara Lake Puchong, Mutiara Kempas in Johor Bahru, The Hill Residences in Seremban and the upcoming Ukay Spring development in Ampang.

The group said it remains confident in the development prospects of the Johor Bahru market, citing the performance of its maiden Johor Bahru serviced apartment project, Mutiara Kempas, which has achieved a 70% take-up rate since its preview in April this year. Barring unforeseen circumstances, the transaction is expected to be completed by the first quarter of 2027.

According to Malton, the acquisition will be funded via a combination of internally generated funds and bank borrowings, and is not expected to have a material impact on the group’s earnings or net assets for the financial year ending June 30, 2026. 

However, it is anticipated to contribute positively to future earnings and strengthen its development land bank over the longer term. The board has deemed the deal to be in the best interests of the group after considering the purchase price, development potential and prospects of the land.

..........

EdgeProp brings you another month of data-driven insights, exclusive interviews, and market commentaries. Subscribe now for your free copy