Matrix embarks on maiden property venture in KL

KUALA LUMPUR: Matrix Concepts Holdings Bhd (MCHB) has acquired a piece of prime land measuring 0.445ha near the Putra World Trade Centre (PWTC), for RM43.6 million for its maiden property project in the capital city.

The company intends to undertake a mixed development project worth RM250 million in gross development value (GDV), comprising high-rise serviced apartments with full facilities as well as retail and food and beverage outlets.

The venture will add to MCHB’s existing projects in Bandar Sri Sendayan in Seremban, Negeri Sembilan and Taman Seri Impian in Kluang, Johor.

In a statement to Bursa Malaysia yesterday, MCHB said the land was purchased by the group’s wholly owned subsidiary, Superb Approach Sdn Bhd (SASB), from Chong Hoe Realty Sdn bhd (CHRSB).

The two parcels of adjoining land are located in Jalan Ipoh Kecil, which is accessible via Jalan Putra, and within walking distance of PWTC’s LRT station and Chow Kit Monorail station. The area is surrounded by condominiums, hotels, shop-offices, office buildings and shopping malls.

MCHB said it expects development to commence next year, with  completion within the next three years.

The property developer said payment for the land purchase will be in cash. A total of RM39.3 million will be paid within three months from the date of the agreement, and RM3.5 million upon commencement of the agreement. The company had earlier paid RM872,606 to CHRSB.

Forty per cent of the RM43.6 million purchase consideration will be funded by internally generated funds and the balance 60% by bank borrowings.

MCHB recorded a net profit of RM30 million on the back of RM147.3 million revenue for the second quarter ended June 30 of 2013 financial year. There was no comparison for the corresponding quarter as the group was listed on the main market of Bursa on May 28 this year.

For the first six months, the group registered net profit of RM76 million on RM302.9 million in revenue.

“The group’s revenue for the current quarter was mainly contributed by sales from residential and commercial properties, comprising 77% while 18% was from the sale of industrial development properties,” it said.

This article first appeared in The Edge Financial Daily, on August 27, 2013.