Matrix Concepts to seal KL land deal

By THE STAR

PETALING JAYA: Newly-listed Matrix Concepts Holdings Bhd is close to securing a piece of land near the Putra World Trade Centre. This will be the Negri Sembilan and Johor-based developer’s first purchase of land in Kuala Lumpur, sources said.

StarBiz learnt that Matrix intends to fork out more than RM40mil or roughly RM1,000 per sq ft for the acquisition, which will be financed by internal funds and bank borrowings.

Assuming a plot ratio of between five and 10 times and an average selling price of RM700 to RM1,000 per sq ft, the gross development value (GDV) for the land could top out at RM300mil, sources said.

Matrix is planning a high rise project there.

According to property sources, the deal was likely to be sealed today by Matrix and the landowners. The company has yet to submit its plans to the local authorities, they added.

Funding for the purchase is not expected to be a stretch for Matrix given its net cash position. Its latest accounts as of March 31 showed that the company had cash and equivalents totaling RM38.51mil versus total borrowings of RM33.91mil, of which only RM17.02mil were due in the short-term.

The property firm, which raised RM137.5mil in its initial public offering on May 28 at RM2.20 a share, has been on an active landbanking drive of late.

It bought 431 acres of land just last month at its flagship Bandar Sri Sendayan, Negri Sembilan, which is near Seremban, for residential and commercial developments worth RM1.6bil.

The acquisition expanded its undeveloped landbank in Bandar Sri Sendayan to 1,350 acres and pipeline GDV to RM4.8bil.

Bandar Sri Sendayan has a GDV of around RM5bil and is slated for completion by 2019.

The firm’s unbilled sales at end-March stood at RM445.1mil. Matrix had said it aimed to roll out RM680mil worth of properties this year.

In a statement to the press at the time of its listing, the company had hinted that it was in the midst of identifying suitable land to undertake its maiden venture in the Klang Valley in the “near future”.

Its shares were last done at RM2.60 apiece, up one sen, giving it a market capitalisation of RM780.92mil. The stock opened with a bang on its debut, finishing 35 sen above the IPO price at RM2.55 after jumping to RM2.70.

Matrix has a policy to pay out 40% of its net profit as dividends annually.

– Malaysia Real Estate News

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