Matrix Concepts Holdings Bhd, a prominent property developer based in Seremban, has successfully secured a financing facility worth RM512 million from AMMB Holdings Bhd (AmBank Group). The funding will play a pivotal role in facilitating the development of a prime housing project spanning 1,382.2 acres within the Malaysia Vision Valley 2.0 (MVV 2.0) located in Sendayan, Negeri Sembilan.
This ambitious project, boasting a gross development value of RM7 billion, is set to be developed through an 85:15 joint venture arrangement between Matrix Concepts’ indirect subsidiary, MHCB Development (NS) Sdn Bhd, and NS Corporation, under the banner of N9 Matrix Development Sdn Bhd. The development is expected to comprise a diverse mix of residential, commercial, and retail elements, making it a significant addition to the property landscape in the region.
During a recent press conference, Datuk Seri Lee Tian Hock, the Executive Deputy Chairman of Matrix Concepts, outlined the utilization of the financing facility. Approximately 80% of the RM512 million will be allocated towards funding the RM460 million land acquisition exercise. This strategic land acquisition, situated within the MVV 2.0 corridor, is slated for completion in the financial year ending March 31, 2024 (FY2024).
Matrix Concepts had previously obtained approval from shareholders in August to acquire the 1,382.2-acre land parcel from NS Corp, which had taken control of the land from Sime Darby Bhd. Notably, the land forms part of the expansive 8,796-acre landholding owned by Sime Darby within the broader 379,087-acre MVV2.0 development area.
In his remarks during the press conference, Datuk Seri Lee Tian Hock emphasized the strategic importance of the financing in advancing the MVV 2.0 project. He highlighted that the project’s inaugural launch is projected to take place in FY2026. During the initial years of FY2026 to FY2028, the MVV 2.0 development is expected to contribute between 10% and 30% of the company’s earnings, with a significant increase to 60% to 70% anticipated from FY2029 onwards.
Furthermore, Datuk Seri Lee shared that Matrix Concepts is confidently on track to achieve its ambitious target of RM1.3 billion in new property sales for FY2024. This target surpasses the RM1.2 billion achieved in FY2023, reflecting the company’s optimism in capturing the favorable demand trends in the market. A substantial portion of this demand is expected to emanate from the flagship Sendayan Developments, which encompass Bandar Sri Sendayan, Ara Sendayan, and Tiara Sendayan in Negeri Sembilan, as well as Bandar Seri Impian in Kluang, Johor.
Notably, Matrix Concepts secured property sales amounting to RM305.3 million during the first quarter ending June 30, 2024 (1QFY2024). This marked a significant 48% increase in net profit for 1QFY2024, which surged to RM47.03 million from RM31.69 million in 1QFY2023. Revenue also experienced a notable uptick, rising by 40% to RM229.3 million from RM163.4 million.
As of June, the company maintained a robust net cash position of RM92 million, positioning it favorably for the challenges and opportunities in the evolving property market landscape.
