Thursday, May 09, 2013

KUALA LUMPUR: Property developer Matrix Concepts Holdings Bhd, which is raising an initial public offer (IPO) later this month, says it is set to attract an additional RM1 billion of foreign investment to its Sendayan TechValley industrial development.

Chairman Datuk Mohamad Haslah Mohamad Amin said the group is at an "advanced" stage of negotiations with the investors from the US, Japan and Europe which he expects to be concluded within six months.

The company has attracted several international companies to its Sendayan TechValley. They have pledged to invest RM2.1 billion since it was launched at the end of 2010. These included companies in auto and aviation related industries.

The Sendayan TechValley is a 400ha industrial area within the group's flagship integrated township development of Bandar Sri Sendayan near Seremban, Negri Sembilan.

Mohamad Haslah said Sendayan TechValley contributed RM80 million in revenue, translating to 17% of Matrix Concepts Group's total revenue of RM465.1 million in financial year ended Dec 31, 2012.

Meanwhile, the company expects to raise RM137.5 million through its listing exercise on the Bursa Malaysia involving 62.5 million shares at RM2.20 each.

Mohamad Haslah said RM55 million of the capital raised will be used to build infrastructure and common facilities at Bandar Sri Sendayan, RM55 million for working capital and RM10 million to build a clubhouse facility for the township.

The remaining RM11 million and RM6.5 million will be allocated for repayment of bank borrowings and listing expenses.

"The sum raised via the IPO will be utilised for working capital, infrastructure and common facilities, construction of our clubhouse and repayment of bank borrowings, including listing expenses," he said.

The company has, to date, sold 15,000 residential and commercial properties which involves a gross development value (GDV) of RM1.3 billion.

On the other hand, it is also embarking on two flagship development projects, which will cater for the company's growth over the next 10 to 15 years with a combined GDV of RM4 billion.

He said that the company is optimistic about selling an estimated RM770 million worth of the balance landbank in Sendayan TechValley over the next five years.

As of financial year ended Dec 31, 2012, the Negri Sembilan-based property developer's industrial property sales registered at RM80 million or 17% of the total revenue of RM456.1 million.

"We are well aware of the industry and in the next two years the demand for property will be robust and we foresee this growth trend continuing," he said.

By https://www.freemalaysiatoday.com