Property

Avaland Bhd is set to expand its footprint in the Klang Valley with the proposed acquisition of a 2.17-acre parcel of leasehold land in Section 13, Petaling Jaya. The property developer announced plans to undertake a high-rise commercial development on the site, with an estimated gross development value (GDV) of RM320 million. In a filing with Bursa Malaysia on Tuesday, Avaland disclosed that the acquisition will be made through its wholly owned subsidiary, Leisure Event Sdn Bhd. The land, situated adjacent to Plaza 33, will be acquired from Comit Communication Technologies (M) Sdn Bhd (CCT) for a cash consideration of RM49 million. CCT is a subsidiary of Warisan TC Holdings Bhd (75.5%) and Tan Chong Motor Holdings Bhd (24.5%). Avaland intends to fund the purchase through a combination of internally generated funds and bank borrowings. Completion of the transaction is targeted for the fourth quarter of 2025. An independent valuation by CBRE WTW Valuation & Advisory Sdn Bhd has placed the market value of the property at RM49 million. The land currently carries a net book value of RM45.5 million. While the acquisition is not expected to have a material impact on Avaland’s financial performance for the year ending 31 December 2025, it is anticipated to contribute positively to future earnings. Avaland Chief Executive Officer Apollo Bello Tanco described the acquisition as a strategic move aligned with the group’s growth plans in key urban locations. “We are excited about this acquisition as it represents a strategic step in expanding our presence within the vibrant and thriving township of Petaling Jaya. The encouraging response to our earlier developments across the Klang Valley reinforces our confidence in this location,” he said in a statement. In a separate announcement, Warisan TC Holdings noted that the divestment was a prudent step, citing the 50-year remaining lease tenure as a key factor. The company highlighted that the property’s value is expected to decline as the lease term shortens, unless renewed at potentially significant cost. Warisan TC added that it had held the land for over a decade and that the disposal allows it to unlock shareholder value by monetising the asset at prevailing market value. At market close, Avaland shares rose half a sen or 1.8% to 29 sen, giving the company a market capitalisation of RM422.5 million. The stock has declined nearly 10% year-to-date. Meanwhile, Warisan TC Holdings ended unchanged at RM1.05, with a market capitalisation of RM70.56 million. Its shares have fallen close to 30% so far this year. -The Edge

JOHOR BARU : Johor’s property sector is set to enter a new phase of expansion following the formalisation of the Johor-Singapore Special Economic Zone (JS-SEZ) agreement and ongoing progress on the Johor Baru–Singapore Rapid Transit System (RTS) Link. Real estate consultancy Nawawie Tie reported that residential property demand in Johor is anticipated to rise steadily, particularly in the rental segment. The increase is attributed to growing interest from local buyers, Malaysians working in Singapore, and Singaporean investors, with the JS-SEZ expected to heighten foreign interest in the region. Despite the positive outlook, Nawawie Tie noted that owner-occupiers are likely to adopt a wait-and-see approach until there is more clarity on the supporting infrastructure and policy frameworks tied to these developments. Landed residential properties remain the top choice among buyers, accounting for 65% of total property transactions in Johor. The Johor Baru district continues to lead the market, contributing 60% of these transactions, underscoring its position as a focal point for residential activity. On the industrial front, the market in the Johor Baru district is forecasted to strengthen, underpinned by robust manufacturing growth and increasing levels of foreign direct investment. The state is also rapidly positioning itself as a regional data centre hub, which is further intensifying demand for industrial property assets. In the first quarter of 2025, Johor recorded 353 housing unit transactions, with terraced and semi-detached homes representing the majority of sales. Johor Baru remains the location of choice for industrial players due to its strategic connectivity and infrastructure pipeline. -Bernama

Mah Sing Group Berhad (Mah Sing), one of Malaysia’s leading integrated property developers, continues to strengthen its presence in Penang as part of its long-term strategic expansion. Established over three decades ago by Tan Sri Leong Hoy Kum, the group has grown into a key player in the Malaysian property landscape, offering a diverse range of residential, commercial, retail, hospitality and industrial developments nationwide. In 2024, Mah Sing achieved RM2.41 billion in property sales – its highest annual performance since 2015 – signalling strong market confidence in its offerings. Building on this momentum, the group has set an ambitious sales target of at least RM2.6 billion for 2025. This target is supported by RM3.3 billion in planned new launches, RM2.7 billion in unbilled sales and a strategy centred on accelerating project completions to expedite revenue recognition. The group also plans to introduce more developments under its premium M Grand Series, aimed at the upmarket segment. This complements the company’s successful M Series, which focuses on affordable housing, thus expanding Mah Sing’s reach across multiple buyer demographics. With 63 active projects as of May 2025, Mah Sing maintains a strong footprint in Greater Kuala Lumpur, the Klang Valley, Johor, Sabah and Penang – the latter being a strategic northern growth region identified by the group nearly 20 years ago. Mah Sing’s entry into Penang began in 2009 with the launch of Southbay City in Batu Maung. The initial development, Residence @ Southbay, featured 284 strata superlink homes in a gated and guarded community. This was followed in 2010 by Legenda @ Southbay, comprising low-density, high-end bungalows offering panoramic views of the Penang Bridge. In 2012, the group unveiled Southbay Plaza, its first mixed-use development in the state, followed by The Loft in 2013, a seafront luxury serviced suite project featuring two 30-storey towers. In 2017, the M Vista project added 237 serviced residences to Southbay City’s portfolio. All five phases in the master development have been successfully sold and completed. The group continued to diversify in Penang with the 2014 launch of Ferringhi Residence in Batu Ferringhi. Its success prompted the subsequent launch of Ferringhi Residence 2 in 2016. Currently, Tower B is 85% sold, while Towers A and C are scheduled for future release. The development stands to benefit from the upcoming North Coastal Paired Road project, expected to enhance regional accessibility. Further bolstering its position in the northern corridor, Mah Sing will introduce M Zenni in Southbay City in Q4 2025. This freehold, mixed-use development with a GDV of RM309 million offers 494 residential units in a single 33-storey tower, with layouts designed for first-time buyers, professionals and families. Unit sizes range from 688 sq ft to 1,184 sq ft, with prices starting from RM480,000. According to Yeoh Chee Beng, CEO of Mah Sing’s property subsidiaries, M Zenni’s design draws from the natural mountain landscape, integrating split-level platforms and earth-toned materials to harmonise with the environment. The project also targets provisional GreenRE Gold certification, reinforcing Mah Sing’s ESG commitments. Amenities include barrier-free access, wellness areas, co-living lounges, and work pods, reflecting a community-focused, family-friendly ethos that aligns with contemporary living trends. As at May 2025, Mah Sing retains approximately 18.4 acres of undeveloped land in Southbay City, with an estimated GDV of RM1.7 billion. This provides ample opportunity for future developments that align with the group’s vision of delivering well-designed, sustainable urban environments. In a move to enhance customer engagement and brand visibility, Mah Sing will relocate its Penang office and sales gallery to a 7,000 sq ft space within Southbay Plaza by July. The new gallery has been designed to offer a more accessible, modern and customer-centric experience. The group continues to explore strategic land acquisitions across Penang and the northern region to support future projects, in line with its broader expansion agenda. Beyond Penang, Mah Sing sees sustained demand across central, southern and northern Malaysia, with its diversified portfolio – from affordable M Series homes to aspirational M Grand offerings – positioned to address varying market needs. According to Yeoh, Mah Sing’s strong brand presence, combined with supportive macroeconomic trends such as stable employment, rising wages and policy initiatives including EPF flexible withdrawals and the Johor-Singapore Special Economic Zone, will help sustain demand across its core markets. As the property market evolves, Mah Sing remains committed to delivering developments that not only meet current demand but also contribute to shaping Malaysia’s future urban landscape. -The Edge

Malaysia must urgently adopt structural reforms, including the introduction of a vacancy tax, to resolve its persistent housing overhang and improve homeownership access for the B40 and M40 income groups, according to Dr Muhammad Najib Razali, Associate Professor of Property Economics at Universiti Teknologi Malaysia. Dr Najib highlighted the entrenched mismatch between residential developments and actual housing demand, underscoring that current market inefficiencies are contributing to affordability challenges. “Malaysia’s price-to-income ratio reached 9.78 in 2022—more than triple the global affordability benchmark of 3.0,” he said. “This clearly indicates that homeownership remains out of reach for many low- and middle-income households.” He noted that structural constraints are exacerbated by limited access to mortgage financing, with many families facing difficulties due to unstable incomes or poor credit profiles. To address the problem, Dr Najib proposed the implementation of a vacancy tax on unoccupied residential units. Such a measure would discourage speculative hoarding by developers and investors, and incentivise the release or repurposing of unsold properties into more accessible housing types. “Cities such as Vancouver, Melbourne and Singapore have successfully employed vacancy-related taxes to suppress speculative behaviour and accelerate the release of idle housing stock,” he said. Dr Najib also emphasised that affordability must be aligned with liveability. Many low-cost homes remain unsold not due to pricing, but because they are located in remote or poorly connected areas, deterring prospective buyers. He recommended that housing policy be integrated with urban transport planning to ensure accessibility. “The expansion of public transport—particularly rail and bus networks—into high-demand corridors will improve the attractiveness and uptake of affordable homes,” he said. To enhance mortgage accessibility, Dr Najib called for the development of tailored financing schemes for lower-income households. These would include capped monthly repayments tied to household income and government-backed guarantees or housing funds to reduce banking sector risk. He further encouraged regulatory support for banks to adopt flexible credit assessment models. These may include evaluations based on employment stability, rental payment history or utility bill records, rather than traditional credit scores. Dr Najib cited international models such as Colombia’s Mi Casa Ya, India’s Credit-Linked Subsidy Scheme, and Singapore’s HDB concessionary loans as potential templates for adaptation in Malaysia. Strengthening public-private partnerships is also critical, he noted. Government-led initiatives such as land provision, tax incentives and infrastructure support could spur the development of affordable, well-located homes priced under RM300,000 without sacrificing quality. Dr Najib also called for the revamp of the National Property Information Centre (NAPIC) to deliver granular, real-time data on regional housing demand, income levels, and consumer preferences. “The current overhang reflects a systemic disconnect between supply and actual needs at the local level,” he said. He proposed the incorporation of predictive analytics within NAPIC’s framework to improve demand forecasting and prevent future oversupply in unsuitable segments. “Robust data governance is essential for ensuring that housing development remains demand-driven, efficient and equitable,” he added. Lastly, Dr Najib recommended repurposing unsold units into alternative housing formats, such as rental properties, co-living spaces, student housing or age-friendly residences. Incentivisation through refurbishment grants or tax relief could facilitate this transition and align supply with Malaysia’s evolving demographic landscape. -NST

SD Guthrie Bhd is advancing its transition from a traditional plantation-based entity towards a diversified industrial developer, underpinned by a comprehensive land monetisation strategy. Over the past year, the group has entered into a series of joint ventures, memoranda of understanding (MoUs), and land sale agreements covering over 2,387 hectares across strategic sites in Malaysia. Industry analysts highlight that this strategy marks a deliberate effort by SD Guthrie to unlock value from its extensive land bank while aligning with national goals to attract investment, generate employment, and promote sustainable industrialisation. “SD Guthrie owns significant tracts of plantation land nationwide. Repurposing selected plots for industrial use allows the group to monetise underutilised assets, diversify income sources, and improve capital efficiency,” said one analyst, who requested anonymity. The group’s pivot towards joint venture-led developments is particularly noteworthy, as these projects provide recurring income streams and signal a clear shift from reliance on core plantation operations. The company is aligning its industrial projects with government-endorsed corridors such as Malaysia Vision Valley 2.0 (MVV 2.0) and Carey Island’s port-centric development, amid strong demand for industrial real estate driven by growth in e-commerce, renewable energy, logistics, and manufacturing sectors. On 24 June 2025, SD Guthrie formalised a landmark agreement involving a 242-hectare industrial development within its Sengkang Estate in Port Dickson. The agreement, signed with Menteri Besar Incorporated Negeri Sembilan (MBINS), comprises the first two phases of the Port Dickson Free Zone (PDFZ), a flagship component of MVV 2.0. Once complete, the PDFZ will encompass 574 hectares and feature logistics hubs, warehouses, manufacturing facilities, and associated infrastructure. The site is strategically located adjacent to Tanco Holdings Bhd’s upcoming Smart AI Container Port (Midport), enhancing Negeri Sembilan’s prospects as an emerging logistics and maritime hub. The master development plan is expected to be finalised in the first quarter of 2026, with construction targeted to begin in the following quarter. According to CIMB Securities Sdn Bhd, the site benefits from connectivity to the North-South Expressway via the Seremban–Port Dickson Highway and the Port Dickson–Linggi road network, providing seamless access to MVV 2.0. In a separate development, SD Guthrie recently entered into a significant partnership with Sime Darby Property Bhd to jointly develop 809 hectares on Carey Island—approximately 7 per cent of the group’s 11,592-hectare landholding there. The joint venture will be structured through a special-purpose vehicle and is intended to complement existing palm oil operations while supporting the Selangor government’s industrial ambitions. The shareholding structure has not been publicly disclosed, though PNB is expected to appoint the chairman of the new SPV. In Mukim Jimah, Negeri Sembilan, SD Guthrie formalised a key joint venture in May 2025 with Eco World Development Group Bhd and Negeri Sembilan Corporation (NS Corp) to develop 483.6 hectares. The group will retain a 30 per cent stake in the RM2.95 billion gross development value (GDV) project, with the land transacted at RM11 per square foot. The group’s industrial expansion is not confined to central Malaysia. In Johor, it has partnered with AME Elite Consortium Bhd to develop a 259-hectare green industrial park in Kulai, which will include a dedicated solar park. Meanwhile, a partnership with TH Properties is advancing a 187.7-hectare industrial project in Bukit Pelandok, Negeri Sembilan, valued at RM220 million or RM10.89 per square foot. In northern Malaysia, SD Guthrie and PNB launched the 404.7-hectare Kerian Integrated Green Industrial Park (KIGIP) in Perak in May 2024. With a 267-hectare solar farm, KIGIP is positioned to become one of the largest integrated green industrial zones in the region. CIMB estimates that, assuming a conservative average land sale price of RM10 per square foot, total proceeds from the 2,387.6 hectares under agreement could reach RM2.57 billion. With a 30 per cent retained stake in joint ventures, a low cost base, and Malaysia’s 24 per cent corporate tax on gains, potential net profit could amount to RM1.3 billion—substantially surpassing the company’s annual land sale target of RM500 million. The research house has maintained a ‘Hold’ rating on SD Guthrie with a sum-of-parts target price of RM5.06 per share. Kenanga Research estimates the Port Dickson development alone may carry a GDV of RM1 billion to RM3 billion over a potential development horizon exceeding five years. Despite the scale of the project, Kenanga is maintaining its current earnings forecasts for FY2025 and FY2026, noting that SD Guthrie has already incorporated RM500 million in land disposal gains into its 2025 projections. The group has achieved approximately RM300 million in disposal gains year-to-date, with RM200 million remaining to meet its target. For FY2026, Kenanga has revised its earlier disposal gain forecast upwards from RM50 million to RM200 million. However, it is keeping the core net profit forecast for FY2025 and FY2026 unchanged, citing execution timelines and earnings realisation lag. Kenanga has reiterated its ‘Market Perform’ rating, with a target price of RM4.60. It also flagged several risks, including continued scrutiny of palm oil sustainability, labour constraints, climate variability, soft commodity pricing, and rising input costs. Nevertheless, it views SD Guthrie’s industrial property pivot as a strategically sound long-term move with potential to enhance return on equity. “SD Guthrie remains asset-rich and resilient, with modest earnings growth. Investors may look forward to occasional extra dividends from land sales,” the research house concluded. -NST

KUALA LUMPUR: IGB Real Estate Investment Trust (IGB REIT) has announced its intention to acquire The Mall, Mid Valley Southkey (MVS Mall) in Johor Bahru for RM2.65 billion, marking a significant expansion of its retail property portfolio. In a filing with Bursa Malaysia, IGB REIT stated that the acquisition will be undertaken by MTrustee Bhd, acting as trustee for and on behalf of IGB REIT, from Southkey Megamall Sdn Bhd. The proposed transaction encompasses the five-storey MVS Mall, which includes a mezzanine floor, an eight-storey standalone car park and two underground parking levels, along with all operating assets, lease agreements, key contracts and related components. The consideration of RM2.65 billion will be satisfied through a combination of RM1 billion in cash and RM1.65 billion via a new issuance of IGB REIT units. The acquisition is not expected to have a material effect on IGB REIT’s revenue, earnings per unit or distributable income for the financial year ending 31 December 2025, as the completion of the deal is scheduled for the fourth quarter of 2025. In a separate statement, IGB REIT said the addition of MVS Mall will strengthen its portfolio by contributing stable recurring income and offering potential for long-term growth. The mall is strategically located within the Mid Valley Southkey integrated development, a prominent economic zone in Johor Bahru. MVS Mall boasts a robust tenant mix that includes anchor tenants such as Sogo, Village Grocer, Golden Screen Cinemas, Aurum Theatre and MVEC Exhibition Hall. -Bernama

SD Guthrie Bhd and Menteri Besar Incorporated Negeri Sembilan (MBINS) have formalised a strategic collaboration to develop the Port Dickson Free Zone (PDFZ), a major industrial development spanning 242.8 hectares in Pasir Panjang, Port Dickson. The project, which carries a projected gross development value (GDV) exceeding RM1 billion, marks a significant milestone in Negeri Sembilan’s long-term industrial and economic agenda. Situated in Ladang Sengkang on land owned by SD Guthrie, PDFZ is expected to serve as a critical component in the region’s transformation into a high-tech industrial and logistics hub. Infrastructure works are anticipated to commence in the second quarter of 2026, following the establishment of a joint venture entity and the finalisation of the master plan in the first quarter of the same year. Negeri Sembilan Mentri Besar, Datuk Seri Aminuddin Harun, stated that the free zone will be constructed directly opposite the upcoming Midport Smart Artificial Intelligence Container Port, acting as a catalyst for its growth. The integration between the two developments is set to create strong synergies in logistics, light processing, and manufacturing activities, enhancing operational efficiency and strengthening the region’s supply chain capabilities. The PDFZ master plan will include warehousing facilities, high-technology factories, and essential support infrastructure, pending approvals from the relevant authorities. According to Aminuddin, the initiative is expected to significantly enhance the state’s industrial sector and investment landscape, attracting global strategic investors and reinforcing Port Dickson’s position within the international maritime and logistics network. “This integration will not only support Midport’s operations but will also optimise container transportation and maritime services,” he said during the signing ceremony for the land sale agreement and memorandum of understanding between MBINS and SD Guthrie. Also in attendance was SD Guthrie Group Managing Director, Datuk Mohamad Helmy Othman Basha. In the project’s initial phase, emphasis will be placed on the transfer of land for basic infrastructure development and investor engagement. Over the longer term, PDFZ is envisioned to evolve into a high-technology industrial hub underpinning the region’s broader economic ambitions. Construction of the Midport terminal is scheduled to begin imminently and is projected to take several years to complete. The port is targeted to commence operations as early as 2027, with the first phase of PDFZ to be ready in time to support its launch. Looking further ahead, Aminuddin expressed confidence that Port Dickson could emerge as a “new port city” by 2035, in line with the state government’s target of achieving an annual gross domestic product (GDP) growth rate of 8.1% until 2045. -Bernama

Oriental Kopi Holdings Bhd has announced plans to acquire a leasehold parcel of land in Kuala Langat, Selangor, for RM23 million. The land, measuring 5,260.8 square metres, is being purchased from Icon Facade Sdn Bhd, according to the company’s filing with Bursa Malaysia. The property currently houses Oriental Kopi’s head office and warehousing operations, both of which are presently under a rental arrangement. By acquiring the site, the food and beverage group aims to generate long-term cost efficiencies through reduced rental and logistics expenditure. The move also serves to mitigate the risk of operational disruption due to potential loss of tenancy rights. The proposed acquisition is expected to be financed through a combination of internally generated funds and bank borrowings. -The Star