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KUALA LUMPUR: Matrix Concepts Bhd has received the nod from its shareholders for the proposed acquisition of new land in Negri Sembilan and a joint venture to develop the land, along with the provision of financial assistance.
The property developer said it secured shareholders’ approval at its AGM yesterday for its subsidiary N9 Matrix Development Sdn Bhd to acquire a 1,382-acre tract in the Malaysian Vision Valley 2.0 development corridor for RM460mil.
The acquisition will be satisfied in cash, and financed via internally-generated funds and borrowings.
Also approved by shareholders was the proposal to develop the acquired land into a RM7bil gross development value (GDV) township, in collaboration with Negri Sembilan state development arm, NS Corp under a joint venture, with N9 Matrix serving as the special-purpose vehicle.
Matrix Concepts has a 85% stake in N9 Matrix via wholly-owned subsidiary MCHB Development (NS) Sdn Bhd, with the remaining 15% equity interest held by NS Corp.
Following the shareholders’ approval, the group will also provide financial assistance to N9 Matrix to fund the future development cost over the land.
According to Matrix Concepts, its balance sheet as at June 30, 2023, reflected a net cash position of RM92mil.
Chairman Datuk Mohamad Haslah Mohamad Amin in a statement said, “We are excited to embark on a long-term collaboration with the state government, advancing Negri Sembilan’s development through the visionary and transformative MVV2.0 initiative.
“Leveraging our extensive expertise in township development and sustainable planning, we are committed to extending our positive economic impact within the state,” he added.
Mohamad Haslah also noted “we are positive of our prospects in financial year 2024. We are on a good momentum, underlining a departure from the industry-wide issues that hampered our construction activities previously.
“We have fully shifted our attention from being defensive, considering unprecedented market challenges in recent years, to returning the group to an accelerated growth trajectory.”
The group shall continue to strengthen the growing acceptance of the Matrix Concepts as a major property developer in Malaysia and the recognition for its products.
Over the years, Matrix Concepts has also been proactive in developing and incorporating its environmental, social and governance (ESG) ethos in its strategic growth plan.
Mohamad Haslah said, “Our efforts have been rewarded with the group being upgraded to the top 25% by ESG ratings among listed companies in the FTSE Bursa Malaysia EMAS Index as of June 2023.
“In ensuring the group’s sustainable growth, we are pleased to receive shareholder support for the acquisition of a 1,382-acre land in Malaysian Vision Valley 2.0.
“The projected RM7bil development will spearhead the group’s next phase of expansion, while bringing transformative growth to the state and local communities,” he added.
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