Chin Hin Group Property Secures RM394m Nilai Project in Negeri Sembilan

Chin Hin Group Property Bhd (CHGP) has announced a significant expansion of its development pipeline with the acquisition of a 55% controlling stake in Sunrich Victory Sdn Bhd. The deal, valued at RM9.37 million in cash, positions CHGP to lead a RM394.3 million mixed-use project in Nilai, Negeri Sembilan, adding depth to its growing property portfolio.

Details of the Acquisition

Acquired Company: Sunrich Victory Sdn Bhd
Stake: 55% controlling interest
Acquisition Value: RM9.37 million (cash, from internal funds)
Vendor: PP Chin Hin Realty Sdn Bhd
Relationship: Related-party transaction involving common directors and shareholders, including Datuk Seri Chiau Beng Teik (founder of Chin Hin Group Bhd), his son Datuk Wira Chiau Haw Choon, and daughter Shelly Chiau Yee Wern.

The acquisition underscores the strong linkages between Chin Hin Group Property and its parent, Chin Hin Group Bhd (KL:CHINHIN), a leader in building materials distribution and manufacturing. With Chin Hin already holding a 50.8% stake in CHGP, the deal represents a natural synergy within the group’s expansion strategy.

The Nilai Project: A Mixed-Use Development

Sunrich Victory owns a 16,606 sq m freehold commercial parcel in Mukim Labu, Seremban, earmarked for a major mixed-use development.

Key Project Facts:

Gross Development Value (GDV): RM394.3 million
Gross Development Cost (GDC): RM329.3 million
Development Mix:
- 1,266 serviced apartments
- 10 retail units
Timeline: Slated to begin in Q4 2025
Status: Development order and building plan approvals secured

This project, referred to as the “Nilai Project”, is expected to become a new residential and lifestyle landmark in Negeri Sembilan.

Strategic Rationale for CHGP

CHGP explained the acquisition aligns with its broader growth agenda:

“This proposed acquisition is in line with the CHGP Group’s overall strategy to expand its property development segment. The project is expected to generate future revenue streams for the group.”

With Malaysia’s property market showing signs of steady recovery, particularly in urban growth corridors outside Greater Kuala Lumpur, Nilai offers a strategic entry point.

Why Nilai?

Nilai has emerged as a property hotspot in Negeri Sembilan, thanks to:

Connectivity: Proximity to KLIA, Putrajaya, Cyberjaya, and Seremban, with access to the North-South Expressway and the ELITE Highway.
Education Hub: Home to INTI International University, Nilai University, and Manipal International University, supporting rental demand from students and staff.
Population Growth: Rising migration from Klang Valley residents seeking more affordable housing.
Industrial and Commercial Expansion: Nilai’s role as a logistics and light industrial hub has boosted local employment and housing demand.

For CHGP, the Nilai Project taps into this growth corridor, balancing affordability with lifestyle elements.

Property Market Impact

Serviced Apartments Demand

With 1,266 serviced apartments, the Nilai Project will add substantial new supply to the local market. Target buyers include:

Young professionals commuting to Klang Valley or KLIA.
Families looking for affordable alternatives to Klang Valley property.
Investors seeking rental income from students and expatriates in Nilai’s education hub.

Retail Component

The 10 retail units embedded in the project provide lifestyle convenience for residents while creating long-term rental yield opportunities for CHGP.

Investment Implications for KL Property

While this development is in Negeri Sembilan, its effects are felt in the Kuala Lumpur property ecosystem:

Klang Valley Spillover: As KL property prices climb, buyers are increasingly drawn to satellite cities like Nilai, Seremban, and Kajang for affordability. This broadens the property investment map.
Commuter Market Strength: With strong road and rail links, Nilai is functionally part of Greater KL, creating opportunities for investors priced out of central KL.
Portfolio Diversification: Developers like CHGP balance prime KL projects with suburban growth areas, giving investors a hedge against market cycles.
Future Appreciation: With ongoing government infrastructure investments (such as the East Coast Rail Link and airport expansions), Nilai stands to benefit from stronger long-term demand.

CHGP’s Growing Footprint

This acquisition builds on CHGP’s efforts to grow beyond its current portfolio. In recent years, Chin Hin Group Property has been active in:

Residential high-rise developments in Klang Valley.
Strategic land banking to secure future growth pipelines.
Partnerships and related-party synergies within the Chin Hin ecosystem, leveraging the group’s expertise in construction and materials.

By adding Nilai to its mix, CHGP demonstrates a strategy that blends urban luxury projects with affordable suburban townships.

Financial Considerations

Acquisition Cost: RM9.37 million — modest relative to the GDV of RM394.3 million, showing high potential upside.
Funding: Entirely from internal funds, reflecting financial discipline and confidence.
Stock Market Reaction: CHGP’s shares closed unchanged at RM1.19, with a market cap of RM1.55 billion.

This suggests that investors are adopting a wait-and-see approach, monitoring execution of the project before pricing in growth.

Challenges Ahead

While the Nilai Project holds promise, CHGP must navigate:

Market Absorption Risk: Ensuring demand keeps pace with supply of over 1,200 units.
Construction Costs: Managing costs against a backdrop of inflation and supply chain challenges.
Competition: Nilai hosts numerous developers; differentiation through quality, pricing, and branding will be critical.
Timeline Execution: Starting in late 2025, the project’s timely delivery will influence financial returns.

Conclusion

Chin Hin Group Property’s RM9.37 million acquisition of Sunrich Victory Sdn Bhd marks a strategic expansion into Negeri Sembilan with a RM394 million mixed-use Nilai Project. Featuring over 1,200 serviced apartments and 10 retail units, the project is well-positioned to capture demand in a growing corridor that benefits from Klang Valley spillover, educational institutions, and industrial expansion.

For CHGP, the Nilai Project represents more than a property venture—it is a long-term growth driver, strengthening the group’s revenue streams while balancing its portfolio across regions and price points.

For property investors, Nilai’s development boom underscores an important truth: as KL property prices rise, satellite cities like Nilai are set to become the next frontier for growth and investment.