Matrix Concepts gets RM512mil financing

Deal sealed: Sulaiman (third from left) and Haslah (third from right) witnessing the changing of documents between AmBank Group managing director, business banking, Christopher Yap (second from left) with Lee. With them are AmBank head, commercial banking region, Chua Bang Lee (left) and Matrix Concepts managing director Ho Kong Soon.

KUALA LUMPUR: Matrix Concepts Holdings Bhd has secured over half-a-billion ringgit in financing from AMMB Holdings Bhd (AmBank) to facilitate the development of its land bank in Malaysia Vision Valley 2.0, located between Selangor and Negri Sembilan.

Matrix Concepts founder and group executive deputy chairman Datuk Seri Lee Tian Hock said RM512mil had been secured and will be allocated for about 80% of the acquisition cost of the land, which is valued at RM460mil.

The remaining funds from the financing will be utilised for infrastructure development costs within the township, Lee added.

“Our balance sheet indicates that we are in a cash-positive position and therefore, the remaining 20% of the land price will be covered from our own cash,” he told the press during the signing ceremony of the financing agreement.

The development, spanning almost 1,400 acres, is a joint venture (JV) between Matrix Concept’s subsidiary N9 Matrix Development Sdn Bhd and Negri Sembilan state-owned company NS Corp.

It is anticipated to yield a gross development value of RM7bil within the next decade.

Lee added that the group aims to launch the first project within the township development as early as 2025.

On earnings contribution, he anticipates the development will contribute between 10% and 20% in its financial year ending March 31, 2026 (FY26) and FY27.

Beyond that, he said the group believes the development will contribute over 60% of its earnings.

As for its sales target of RM1.3bil for FY24, Lee noted that it is on track.

AmBank group chief executive officer Datuk Sulaiman Mohd Tahir said Matrix Concepts, which has traditionally focused on developments within Negri Sembilan, has expanded its footprint not only to different states within the country but also abroad.

Locally, Matrix Concepts has developments in Johor, Kuala Lumpur and Negri Sembilan.

Additionally, the company has expanded internationally with three developments in Australia and one in Indonesia.

Sulaiman said AmBank appreciates Matrix Concepts as a property developer due to its emphasis on affordable housing with an added touch of green initiatives, which is well aligned with the bank’s ambitions of green financing.

Providing an update on its project in Indonesia, Lee said the development of Menara Syariah Twin Towers, an Islamic financing centre, is earmarked to be completed early next year.

Menara Syariah Twin Towers will be developed by PT Fin Centerindo Satu, a JV company between Matrix Concepts and three other Indonesian companies – Agung Sedayu Group, Salim Group and PT Fin Centerindo Dua.

The JV company is 30% owned by Matrix Concept’s PT Matrix Perkasa Indonesia, while Agung Sedayu Group and Salim Group’s PT Bangun Kosambi Sukses have 40%, with the remaining 30% owned by PT Fin Centerindo Dua.

Matrix Concepts chairman Datuk Mohamed Haslah Mohamad Amin emphasised the longstanding relationship between the bank and the group since October 2004.

Haslah said future development would be incorporating green elements, extending beyond just housing construction, in tandem with the bank’s green financing initiatives.

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