(Photo by Patrick Goh/The Edge)

KUALA LUMPUR (Nov 14): Seremban-based property developer Matrix Concepts Holdings Bhd has secured a RM512 million financing facility from AMMB Holdings Bhd (AmBank Group) to facilitate the development of 1,382.2 acres of prime housing in Malaysia Vision Valley 2.0 (MVV 2.0) located in Sendayan, Negeri Sembilan.

The project, which has a gross development value of RM7 billion, will be developed through an 85:15 joint venture between Matrix Concepts’ indirect subsidiary MHCB Development (NS) Sdn Bhd and NS Corporation called N9 Matrix Development Sdn Bhd. It will feature a mix of residential, commercial and retail elements.

At a press conference on Tuesday, Matrix Concepts’ executive deputy chairman Datuk Seri Lee Tian Hock said about 80% of the financing will be used to fund the RM460 million land acquisition exercise — located within the MVV 2.0 corridor — which is expected to complete in the financial year ending March 31, 2024 (FY2024).

The group had in August secured shareholders’ approval to buy the 1,382.2-acre land from NS Corp which had taken over the parcel from Sime Darby Bhd. The land is part of the 8,796 acres Sime Darby owns in the 379,087-acre MVV2.0.

“We will use 80% of the financing to fund the land purchase, and the remaining for infrastructure development in the township as well as standby funds.

“The first launch of the MVV 2.0 project is anticipated in FY2026. For FY2026 to FY2028, the project will contribute about 10% to 30% of our earnings, and then contribute more than 60% to 70% from FY2029 onwards,” said Lee.

Lee also shared that Matrix Concepts is on track to achieve the RM1.3 billion new property sales target in FY2024, higher than RM1.2 billion achieved in FY2023. The group anticipates ongoing advantages from the favourable demand trend, particularly at its flagship Sendayan Developments —comprising Bandar Sri Sendayan, Ara Sendayan and Tiara Sendayan in Negeri Sembilan, and Bandar Seri Impian in Kluang, Johor.

Worth noting that the group secured RM305.3 million worth of property sales in the first quarter ended June 30, 2024 (1QFY2024).

Matrix Concepts posted a 48% increase in its 1QFY2024 net profit to RM47.03 million from RM31.69 million in 1QFY2023, as revenue climbed 40% to RM229.3 million from RM163.4 million.

As at the end June, the group had a net cash position of RM92 million.

Shares of Matrix Concepts closed up three sen or 1.9% to RM1.61 on Tuesday, giving it a market capitalisation of RM2.01 billion.