CHGP Provides More Detail On The NeX Kota Damansara
Chin Hin Group Property Bhd has outlined the development and funding plans for The NeX Kota Damansara, a proposed RM449.43 million integrated industrial-commercial hub that will mark the group’s first entry into the industrial property segment.
The project is planned on an approximately four-acre leasehold site currently occupied by a factory and office building owned by Signature Cabinet Sdn Bhd.
CHGP’s indirect wholly owned subsidiary, Boon Koon Capital Sdn Bhd, is proposing to acquire the property for RM66 million before redeveloping it into a nine-storey complex comprising 242 warehouse units.
The latest details were provided through a shareholder circular issued ahead of CHGP’s extraordinary general meeting on Aug 13, 2026.
For The NeX, the announcement provides more than another project introduction. It confirms the proposed development cost, application timeline, financing structure and corporate approvals required before CHGP can complete the acquisition and proceed with its first industrial project.
A RM449.43 Million Industrial-Commercial Development
The NeX has an estimated gross development value of RM449.43 million and a projected gross development cost of RM361.63 million.
CHGP plans to transform the existing factory property into a nine-storey integrated warehouse hub with 242 units.
The vertical format differentiates The NeX from conventional landed factories and warehouses found across older industrial areas.
Instead of relying entirely on large individual land parcels, a multi-level industrial development allows more businesses to operate within a relatively compact urban site.
This type of project may appeal to smaller manufacturers, distributors, e-commerce operators, storage users and businesses requiring a combination of warehouse, office and light-industrial space.
However, the success of a vertical industrial project depends heavily on its operational design.
Buyers and occupiers will need to assess vehicle ramps, loading access, floor loading, ceiling heights, goods lifts, turning areas and whether larger commercial vehicles can move through the building efficiently.
The number of units and the nine-storey structure make these details more important than conventional residential-style facilities or branding.
CHGP’s First Move Into Industrial Property
The project represents CHGP’s first industrial development, broadening its portfolio beyond its established residential focus.
This gives The NeX strategic relevance for the group.
Industrial property has received stronger attention in recent years, supported by e-commerce, logistics, manufacturing, digitalisation and businesses seeking newer managed facilities.
For CHGP, entering the sector provides exposure to a different buyer and occupier base from its residential projects.
Industrial demand is generally influenced by business expansion, operational suitability and logistics efficiency rather than lifestyle positioning.
That also means CHGP must execute The NeX differently from a serviced apartment or condominium project.
The group will need to understand occupier requirements, commercial vehicle movement, utility capacity, safety compliance and industrial management.
The project’s performance may therefore serve as an early test of whether CHGP can translate its development experience into a specialised industrial format.
September 2026 Launch Target
The NeX sales gallery opened in June 2026, while development order and building plan applications were submitted on July 15.
CHGP expects the approvals to be obtained by August 2026, with the formal project launch targeted for September.
Completion is scheduled for the third quarter of 2030.
The timeline shows that marketing activity has begun while the statutory applications are still being processed.
Buyers should therefore distinguish between the opening of a sales gallery and full regulatory approval.
The project remains dependent on the relevant development order, building plan and acquisition approvals being secured.
If the targeted timeline is maintained, The NeX will move relatively quickly from property acquisition and planning into launch and construction.
The four-year development period will give CHGP time to phase construction and sales, although actual progress will depend on approvals, site conversion and market demand.
RM66 Million Acquisition Close To Valuation
The industrial property has an appraised market value of RM66.36 million, based on an independent valuation by KGV International Property Consultants (M) Sdn Bhd.
CHGP’s proposed RM66 million purchase price is therefore close to the independent valuation.
The site is leasehold, with the tenure expiring on Oct 18, 2106. This leaves approximately 80 years remaining.
The remaining tenure should be sufficient for normal industrial ownership and financing, although businesses comparing The NeX with freehold alternatives may still consider tenure in their decision.
The existing factory and office buildings also mean the site is not undeveloped land.
CHGP will need to manage the transition from the existing use into a multi-level industrial hub, including demolition, site preparation and infrastructure requirements.
The acquisition price is only one part of the project economics. The much larger RM361.63 million development cost reflects the capital required to deliver the proposed nine-storey scheme.
Acquisition Funded Through Cash And Borrowings
Boon Koon Capital will fund the RM66 million acquisition through a combination of internally generated funds and bank borrowings.
Approximately 30%, or RM19.8 million, will come from internal funds. The remaining 70%, equivalent to RM46.2 million, will be financed through borrowings.
CHGP has also received an indicative, non-binding term sheet from AmBank Islamic Bhd for a 54-month financing facility of up to RM109.5 million.
The proposed facility is larger than the bank-funded portion of the acquisition and may provide additional flexibility around the transaction and early project requirements, subject to final terms.
For CHGP, debt funding allows the group to preserve part of its cash resources while adding a new development pipeline.
However, financing cost will affect the eventual project margin, especially if approvals, construction or sales take longer than expected.
The NeX will need to generate sufficient sales and development returns to cover the land, construction and financing commitments attached to the project.
A Related-Party Transaction Requires Shareholder Approval
The proposed acquisition is classified as a related-party transaction because of common directorships and shareholdings involving the parties.
The vendor, Signature Cabinet Sdn Bhd, is wholly owned by Signature International Bhd.
As a result, interested directors and major shareholders will abstain from deliberating and voting on the proposal.
Non-interested shareholders will decide on the acquisition at the Aug 13 extraordinary general meeting.
CHGP’s board, excluding the interested directors, has recommended that eligible shareholders vote in favour of the transaction.
BDO Capital Consultants Sdn Bhd has been appointed as the independent adviser to assess the proposal for non-interested shareholders.
This governance process is relevant because the acquisition involves an asset transferred from a company connected through common interests.
The independent valuation, adviser’s assessment and shareholder vote provide important checks around whether the price and terms are fair to CHGP’s minority shareholders.
Why Kota Damansara Fits A Vertical Industrial Hub
Kota Damansara is a mature urban location with access to residential communities, commercial areas, highways and a large Klang Valley customer base.
This gives The NeX a different positioning from industrial parks located farther from established population centres.
Urban industrial users may value proximity to customers, suppliers, employees and delivery routes.
The location can be relevant to e-commerce, distribution, design, renovation, food-related businesses, light manufacturing and companies serving the surrounding Petaling Jaya and Kuala Lumpur markets.
However, an urban location also creates challenges.
Land is more expensive, road congestion can affect deliveries and neighbouring land uses may limit the types of heavy industrial activity suitable for the site.
The NeX is therefore more likely to compete as a managed urban warehouse and light-industrial hub rather than a conventional heavy manufacturing estate.
Its success will depend on whether the unit designs and operating rules match the needs of that market.
The NeX Is Not A Conventional Landed Factory Project
The NeX should be evaluated differently from a standard detached or semi-detached factory development.
A landed factory normally gives an owner direct ground-level access, private loading space and greater control over operations.
A vertical industrial hub uses shared ramps, loading areas, access control and common management to accommodate more businesses on a smaller site.
The model can provide security, professional management and a more organised environment than some older industrial areas.
It can also offer a lower total entry cost than buying a large landed factory in a mature Klang Valley location.
The trade-off is greater dependence on shared infrastructure.
A problem with vehicle access, ramps, goods lifts or building management can affect multiple occupiers at once.
Buyers should therefore focus closely on the development’s technical specifications rather than treating it as a normal strata commercial purchase.
EmHub Provides A Useful Market Reference
The Klang Valley already has a completed reference point for this type of property through EmHub, which helped introduce the multi-level managed industrial concept to a wider group of business owners and investors.
The NeX is not identical to EmHub, but the comparison helps buyers understand the category.
Both concepts respond to the limitations of older landed industrial areas, where security, access control, maintenance and shared management may be inconsistent.
The NeX will need to show how its unit sizes, ramp system, loading capability, access and management proposition compare with completed alternatives.
A successful earlier project demonstrates that there is demand for modern managed industrial space, but it does not guarantee automatic take-up for every new launch.
Final pricing and operational practicality will remain decisive.
What Buyers Should Watch Before Launch
The detailed unit specifications will be the most important information at launch.
Buyers should review the warehouse sizes, floor loading, ceiling height, electrical capacity and whether individual units can support their intended business activities.
Vehicle access must also be assessed carefully.
The ramp width, gradient, turning radius, loading zones and allowable vehicle types will determine how practical the building is for logistics and industrial use.
Management charges, sinking fund and shared-facility costs should be included in the ownership calculation.
Businesses should also confirm the permitted use of each unit, licensing requirements and whether specific industries face operational restrictions.
Investors need to study the likely tenant market rather than relying only on general industrial property demand.
A warehouse unit may attract interest, but rental performance will depend on its size, loading access, location within the building and suitability for actual businesses.
Conclusion: A New Industrial Direction For CHGP
The NeX Kota Damansara is a significant project for CHGP because it marks the group’s first move into industrial property.
The proposed RM66 million acquisition will provide the four-acre site for a nine-storey hub containing 242 warehouse units, with an estimated GDV of RM449.43 million.
The development is targeted for launch in September 2026 and completion in the third quarter of 2030, subject to planning approvals and shareholder consent.
For CHGP, the opportunity is to diversify beyond residential development and capture demand for modern, managed industrial space in an established urban location.
The challenge will be proving that the vertical warehouse model works operationally for end users.
The acquisition and funding disclosures provide greater clarity on the corporate structure. The next meaningful test will come from the project’s final technical specifications, pricing and response from actual business occupiers.
https://klproperty.cc/the-nex-kota-damansara-review/
