Daily Digest · Wednesday, 17 June 2026· Updated: about 7 hours ago
UEM Sunrise brings in Kio Investment Management as capital partner for its A$315.4 mil Collingwood build-to-rent project, its first in Australia’s rental sector; HexTech and Widad end Nilai industrial land transaction
UEM Sunrise has brought in an institutional owner-operator for its largest Australian housing project to date, while a two-year attempt to move HexTech's Nilai land into Widad collapsed with no replacement deal. The window runs from the afternoon of 16 June through this morning. Two themes, plus briefs on a Bangi joint venture, a developer leadership change and the LRT3 opening
Quick takes
- UEM Sunrise secured Kio Investment Management, a joint venture of US private equity firm Warburg Pincus and Australian property specialist Sam Bisla, as investor and owner-operator for its A$315.4 million (about RM903.3 million) build-to-rent project in Collingwood, Melbourne, its first such venture in Australia.
- The Collingwood deal is structured as a land sale of about A$47.3 million plus a fund-through agreement of A$268.1 million, excluding goods and services tax, with construction from late 2026 and completion targeted for 2030.
- HexTech and Widad permanently terminated their proposed Nilai industrial land disposal, ending a transaction first floated in September 2024 and removing an expected RM25.97 million pro forma gain for HexTech.
- Gabungan AQRS restructured the landowner unit entitlement in its Bangi joint venture with Rising Charm to ease cash flow on a development carrying a RM600.47 million gross development value.
- Country Heights Holdings is seeking a new chief executive after Mohd Rizal Zubair resigned on 15 June, about two months after his appointment.
UEM Sunrise teams up with Kio Investment Management to back its A$315.4 million Collingwood build-to-rent development, its inaugural build-to-rent venture in Australia
UEM Sunrise Bhd has secured an institutional investor for its A$315.4 million build-to-rent development in Collingwood, Melbourne, formalising a partnership with Kio Investment Management at a signing ceremony in Melbourne on June 16, according to a company statement and filing reported by EdgeProp, and The Star the same day. The value is equivalent to about RM903.3 million. Kio is a joint venture between US private equity firm Warburg Pincus and long-term Australian property specialist Sam Bisla.
Under the arrangement, UEM Sunrise will act as developer and delivery partner through its wholly owned subsidiary UEM Sunrise (Collingwood Development) Pty Ltd, while Kio will be the investor and owner-operator, holding and managing the completed asset on a long-term basis. The Edge Malaysia reported that the transaction is structured as a land sale of about A$47.3 million to a Kio-owned trust together with a fund-through agreement worth A$268.1 million, excluding goods and services tax, for UEM Sunrise to design, develop and construct the scheme.
The project sits on a 0.54 hectare freehold site along Hoddle Street, about 3.5 kilometres from Melbourne's central business district, and will comprise two buildings with more than 400 studio to three-bedroom apartments, alongside retail and food and beverage space, a public town square and landscaped areas. The development received planning approval in December 2024, when the named investor was Greystar; the June 2026 agreement installs Kio in that role. Early construction works are expected to begin towards the end of 2026, with completion targeted for 2030. UEM Sunrise managing director and chief executive Shaharul Farez Hassan said the project forms a key part of the group's growth strategy in Australia, where it has delivered more than 1,600 units across two completed Melbourne high-rise projects and expanded into Perth with the 342-unit One Oval in Subiaco in 2025.
Why it matters
Securing an institutional owner-operator turns a planned overseas project into a funded one and lets UEM Sunrise recycle capital, taking development and delivery fees while Kio carries long-term ownership. The deal marks the group's first entry into Australia's build-to-rent segment and signals continued offshore diversification for a Malaysian developer at a time when domestic margins face cost pressure.
HexTech and Widad end Nilai industrial land deal, shelving a September 2024 transaction with no intention to revive it.
Hextar Technologies Solutions Bhd (HexTech) and Widad Group Bhd have permanently ended their proposed disposal of vacant freehold industrial land in Nilai, Negeri Sembilan, with both parties releasing each other from all further obligations, according to a Bursa Malaysia filing on June 16 reported by EdgeProp the same day. HexTech said its wholly owned subsidiary Guper Bonded Warehouse Sdn Bhd and Widad Development (Nilai) Sdn Bhd, formerly Widad Rail Sdn Bhd, agreed to terminate the conditional sale and purchase agreement and to cease all further negotiation.
The deal dates to September 2024, when the two groups disclosed a heads of agreement covering five adjoining parcels within the Nilai Inland Port area. A conditional sale and purchase agreement signed in April 2025 covered four parcels on the roughly 10.4-acre site at a disposal consideration of RM31.3 million, to be settled entirely through 993.65 million new Widad shares at 3.15 sen each, a structure that would have made HexTech the largest shareholder in Widad at about 23 percent of the enlarged capital, as reported by The Edge Malaysia at the time. The parties terminated that agreement in August 2025, citing economic changes, but framed the move as a precursor to a fresh deal.
The June 2026 filing contains no reference to renegotiation or a replacement transaction. For HexTech, the decision removes a RM31.3 million monetisation event and an expected pro forma gain of about RM25.97 million, though the company said the termination is not expected to have a material effect on its earnings or net assets for the year ending March 31, 2027. For Widad, the collapse halts a planned commercial development with an estimated gross development value of RM135.29 million, along with a targeted land conversion in the third quarter of 2026 and a construction start in the second quarter of 2027.
Why it matters
The clean break ends a two-year attempt to convert HexTech's idle Nilai land into a strategic shareholding in Widad and removes the land bank Widad had earmarked for its move into property development. The all-share structure had implied a steep premium to Widad's traded price, and the final termination leaves both companies to redeploy the asset and capital elsewhere.
Also on the radar today
Gabungan AQRS eases Bangi joint venture cash flow
Gabungan AQRS Bhd signed a new joint venture agreement with landowner Rising Charm Sdn Bhd for its integrated commercial development on a 7.92-acre former college site in Bangi, Selangor, superseding the December 2025 agreement, according to a Bursa Malaysia filing on June 15 reported by EdgeProp on June 16. The revision splits the 44 units owed to the landowner into two tranches, with 37 tied to the unconditional date and seven to completion of the group's E'island Lake Haven project in Puchong, which has already obtained its certificate of completion and compliance. The company said the change is expected to ease the project's cash flow. The development carries an estimated gross development value of RM600.47 million and a targeted launch in the third quarter of 2027.
Country Heights chief executive resigns after two months
Country Heights Holdings Bhd said chief executive Mohd Rizal Zubair has resigned to pursue personal interests, effective June 15, less than two months after his appointment on April 15, according to a Bursa Malaysia filing reported by The Star and Bernama on June 15 and 16. The loss-making developer said the resignation was not due to any disagreement with the board and that operations continue under the senior management team pending a successor. The stock last traded at approximately 17 sen, based on last traded price.
LRT3 Shah Alam line set to open by end of June
Transport Minister Anthony Loke Siew Fook said the Light Rail Transit 3 (LRT3) Shah Alam line, which runs from Bandar Utama in Petaling Jaya to Johan Setia in Klang, is expected to begin operations by the end of June, with the exact date to be announced within two weeks, speaking after a Malaysian Road Safety Council meeting on June 15 as reported by The Edge, Malay Mail and The Sun. The line is in its final trial operations. The long-delayed project, earlier slated for September 2025 and then December 2025, had its cost revised to about RM16.63 billion after several stations were shelved. Developers along the alignment are watching the opening for its effect on transit-linked catchments.
Today's roundup
UEM Sunrise secured Kio Investment Management as funding partner for its A$315.4 million Collingwood build-to-rent project, marking its entry into Australia’s rental housing sector. HexTech and Widad Group Bhd abandoned their Nilai industrial land deal, ending a two-year effort and shelving a RM135.29 million development. Gabungan AQRS Bhd restructured its Bangi joint venture to ease cash flow pressures, while Country Heights Holdings Bhd initiated a fresh search for a chief executive. The LRT3 Shah Alam line moved closer to completion, with opening targeted by end-June.
Follow Us
Follow our channels to receive property news updates 24/7 round the clock.
Telegram
