PETALING JAYA: Property developer Matrix Concepts Holdings Bhd is expanding its footprint in the Klang Valley with a proposed acquisition of 2.3 ha land cum approved residential development project in Puchong, Selangor for a purchase consideration of RM95 million.
The land purchase is the group’s second landbanking in the Klang Valley, following its acquisition of a land near the Putra World Trade Centre in Kuala Lumpur in December 2013.
The new land is situated beside SetiaWalk, a prominent integrated development comprising a shopping mall, offices and serviced apartments along the Damansara-Puchong Expressway (LDP). A notable hypermarket is also at close proximity.
Following the acquisition, Matrix Concepts intends to enhance the development project’s residential density and gross development value (GDV) beyond the current RM500 million, subject to the relevant regulatory approvals.
“Banking on our experience in developing highly sought after properties in Negri Sembilan and Johor, Matrix Concepts seeks to extend our product offerings to communities in the Klang Valley,” chairman Datuk Mohamad Haslah Mohamad Amin said in a press release yesterday.
“The new acquisition in Puchong not only allows us to further tap into the Klang Valley’s rapid urbanisation and corresponding population growth, but also gives us an affordable entry point to a highly successful township,” he added.
The said approved residential project, comprising 318 units of high-rise condominiums and 28 units of four-storey link villas, had been earlier commenced by the original vendor, and is currently undergoing preliminary earthworks and piling works.
The acquisition is being undertaken by Matrix Concepts (Central) Sdn Bhd (MCCSB), a wholly owned subsidiary of Matrix Concepts, which entered into a sales and purchase agreement with the vendor IRDK Ventures Sdn Bhd yesterday.
The total purchase consideration of RM95 million will be funded via 40% internally generated funds and 60% bank borrowings. The acquisition is targeted for completion by the third quarter of 2015.
Upon obtaining subsequent approvals for the upwards revision in residential density and GDV, the project will have an estimated development timeline of four years.
“Puchong has gained repute as a rapidly growing suburban township in the Klang Valley, strategically located midway between Kuala Lumpur and the Putrajaya administrative capital. The township’s increasing vibrancy also derives from continued expansion of suburban communities in tandem with Selangor’s economic growth.
“In this regard, we anticipate long term demand for new residential properties in Puchong to remain intact. We are confident that our planned project would add on positively to the group’s prospects in the coming years,” Mohamad Haslah concluded.