Property

A real estate management unit of KKR & Co is planning a major expansion in Japan’s property market, targeting assets being divested by corporations in a sector it estimates to be worth around 450 trillion yen (US$2.8 trillion). KJRM Holdings, KKR’s Japan-based property arm, sees strong opportunities as companies increasingly sell non-core assets, including real estate, amid growing pressure from regulators and shareholders to improve capital efficiency. President Naoki Suzuki said demand for such disposals is expected to remain robust over the next three to five years, driven in part by shareholder activism and ongoing corporate reforms. The unit’s real estate portfolio grew 20% in 2025 to about 2.53 trillion yen, placing it among the largest players in Japan’s property market. Suzuki noted that KJRM intends to step up acquisitions of corporate-owned properties, although he did not disclose specific targets. The push to unlock value from underutilised assets has been supported by initiatives from the Tokyo Stock Exchange, which has encouraged companies to enhance shareholder returns. Many Japanese firms still hold substantial real estate assets, a legacy of heavy investment during the late-1980s asset bubble, as well as lending practices that historically favoured property-backed financing. According to KJRM data, real estate accounts for about 12.6% of total assets among Japanese companies, compared with around 10% in the United States and 4.4% in the United Kingdom. Suzuki also pointed out that Japan’s property market is attracting global investors, particularly as geopolitical concerns dampen interest in Chinese assets. With its scale and liquidity, Japan remains a key destination for relatively lower-risk investments in the Asia-Pacific region. He added that the sector is unlikely to face significant pressure from rising borrowing costs unless Japanese government bond yields climb to between 3.5% and 4%. As of last Friday, the 10-year yield stood at around 2.43%. More than half of the properties acquired by KJRM-managed real estate investment trusts (REITs) and private funds in recent years have come from corporate divestments. Notable transactions include the acquisition of 14 office buildings from Fuji Soft Inc for approximately 68.7 billion yen, as part of KKR’s takeover of the company. In another deal, linked to KKR’s acquisition of Logisteed Ltd in 2023, KJRM’s funds took over real estate assets worth more than 200 billion yen. While such investments carry risks — including rising interest rates and fluctuations in property values — Suzuki said rental growth can help offset higher costs in the current environment. Looking ahead, KJRM plans to focus on acquiring assets with strong inflation resilience and stable cash flow potential, particularly in major cities such as Tokyo, Osaka and Nagoya.

Nestcon Bhd has proposed to acquire three parcels of land in Johor Bahru for RM95 million, as part of its strategic move to diversify into property development beyond its core construction and renewable energy businesses. In a Bursa Malaysia filing, the group said the acquisition will be carried out by its 70%-owned subsidiary, Nestcon Iskandar Puteri Sdn Bhd. The deal involves three freehold land parcels located in Mukim Pulai, with a combined area of 8.348 acres, translating to an implied price of RM261.26 per sq ft. The vendor for the land is KLG Iskandar Puteri Sdn Bhd, which is owned by Chong Ngun Kin and Lee Siang Huat. Nestcon plans to develop the site into a mixed commercial and residential project, comprising serviced apartments and retail units to be executed in two phases. The development is expected to generate a gross development value (GDV) of RM1.37 billion, with an estimated gross development cost of RM1.03 billion, resulting in a projected gross development profit of RM336.97 million. The acquisition will be funded through a combination of internally generated funds and bank borrowings, with the exact financing structure to be finalised at a later stage. The group said the move marks its entry into property development as a new core business segment, alongside its existing building and infrastructure, as well as renewable energy divisions. Currently, Nestcon’s building and infrastructure segment remains its primary earnings driver, contributing approximately 98% of its net profit of RM11.5 million on revenue of RM723.8 million for the financial year ended Dec 31, 2025. The proposed diversification is expected to contribute at least 25% to the group’s future net profit or net assets, subject to shareholders’ approval at an extraordinary general meeting. The acquisition is targeted for completion in the second half of 2026. Nestcon’s board said the proposal is aimed at reducing reliance on its existing business segments while enhancing long-term growth prospects. As at Friday’s midday break, Nestcon shares were unchanged at 34 sen, giving the group a market capitalisation of RM264.87 million. Over the past year, the stock has declined by 11.7%.

Axteria Group Bhd has proposed to acquire an 80% stake in Niaga Sari Sdn Bhd (NSSB) for RM35 million in cash, as part of its strategy to strengthen construction capabilities and support its property development business. In a filing on Thursday, the group said it had signed a conditional share sale agreement with six vendors, including Datuk Chan Chee Hong, for the acquisition of 800,004 shares, representing an 80% equity interest in NSSB. Upon completion, NSSB will become a subsidiary of Axteria. The purchase consideration of RM35 million was arrived at on a willing-buyer-willing-seller basis, taking into account NSSB’s RM567.4 million order book and a RM9.2 million profit guarantee over two years. This implies a price-to-earnings multiple of about 9.5 times. The other vendors involved are Gwi Chin Fatt, Datuk Wong Gian Kui, Periasamy Ganapathy, Gwi Xian Yi, Gwi Huan Yi, and Chan Khai Young. Under the terms, RM5 million will be paid upfront, while the remaining RM30 million will be placed in an escrow account, subject to fulfilment of the profit guarantee. Incorporated in 1985, NSSB is engaged in building construction and has completed projects worth about RM1 billion to date, ranging from factories to high-rise residential developments. It currently has ongoing and upcoming projects worth a combined RM567.4 million, including developments in Kelantan and Kuala Terengganu. For the financial year ended June 30, 2025, NSSB recorded a net loss of RM2.13 million, with net assets of RM12.33 million. Axteria said the acquisition is expected to complement its property development and management business, supporting expansion through joint ventures and land acquisitions while leveraging NSSB’s existing order book. The group added that the move aligns with its strategy to pursue growth opportunities without significant upfront capital, and is expected to contribute positively to future earnings. Axteria shares closed unchanged at nine sen, giving the group a market capitalisation of about RM71 million.

Hong Seng Consolidated Bhd’s wholly-owned subsidiary AIMAX Capital Sdn Bhd has entered into debt settlement agreements totalling RM63.61 million with four borrowers. In a filing with Bursa Malaysia, the group said AIMAX Capital signed the agreements on Thursday with Datuk Liu Han Ming, Von Victory Sdn Bhd, Chia Yan Mei, and Nah Choon Jeck. The settlement involves the full and final discharge of the outstanding principal debt, which will be satisfied through the transfer of 184 serviced apartment units located in Kajang, Selangor. The properties carry an agreed total value of RM62.48 million. This results in a remaining differential sum of RM1.12 million under the overall RM63.61 million debt settlement. Liu Han Ming’s RM36.95 million debt will be settled with 109 units valued at RM36.40 million, leaving a balance of RM548,193.95. Von Victory Sdn Bhd’s RM6.17 million will be settled with 18 units worth RM6.06 million, with a RM114,570.27 differential. Chia Yan Mei’s RM6.24 million obligation will be settled with 14 units valued at RM6.11 million, leaving RM127,035.26 in difference. Meanwhile, Nah Choon Jeck’s RM14.24 million debt will be settled with 43 units worth RM13.91 million, resulting in a RM332,507.88 gap. Under the agreement, AIMAX Capital will assign its rights and interests in the properties to its wholly owned subsidiary AIMAX Assets Sdn Bhd. The unit, which is involved in investment holdings and property investments, will manage and streamline ownership of the assets.

Mah Sing Group Bhd is revising the master plan for its Southbay City development in Batu Maung, following approval to increase the plot ratio. The revision lifts the project’s gross development value (GDV) to about RM1.365 billion. Its property subsidiaries CEO, Yeoh Chee Beng, said the group received approval from local authorities in 2025 to amend key development parameters. A revised master plan for the remaining 17 acres will be submitted soon, aligned with current market conditions and the company’s evolving priorities. Yeoh said the updated plan will shift focus towards serviced apartments, replacing a larger office component in the original design, in response to stronger demand in this segment. He added that the remaining land is expected to unlock greater value through a more balanced and market-driven development mix, while tapping into Penang’s ongoing economic growth. Launched in 2009, Southbay City marked Mah Sing’s first integrated township. Its initial phase featured 284 three-storey superlink homes within a gated and guarded community. In 2025, the group introduced M Zenni, a freehold mixed development comprising 10 commercial shoplots and 494 serviced apartment units in a 33-storey tower. Across the group, Mah Sing is targeting RM2.76 billion in sales for 2026, up from RM2.51 billion in 2025, supported by new launches across key growth areas. These include projects in Setapak, Puchong, Penang, Johor, and Klang Valley, along with upcoming phases of existing developments. Yeoh noted that the group’s fast-turnaround model will support a robust pipeline of launches in 2026, including projects acquired as recently as last year.

Bandar Cassia is emerging as a new focal point for business activity on Penang’s mainland, underpinned by rising demand for quality office space and expanding industrial investments. The outlook was shared by industry players at a specially curated business forum, where discussions centred on the township’s evolving role within the northern region’s economic landscape. From left: Ho Chin Soon, Fellow of the Royal Institution of Surveyors Malaysia, and Chairman of Ho Chin Soon Research and Hong Onn Enlightens; Joanna Lim, PE Holdings’ CEO; Jacqueline Lim, Editor & Branding Head of EdgeProp; and Datuk Yong Soo Heong, the Editor-in-Chief of Weekly Echo, and Former CEO of BERNAMA during the business forum held today. The speakers were Ho Chin Soon, Fellow of the Royal Institution of Surveyors Malaysia, and Chairman of Ho Chin Soon Research and Hong Onn Enlightens; Jacqueline Lim, Editor & Branding Head of EdgeProp; and Datuk Yong Soo Heong, the Editor-in-Chief of Weekly Echo, and Former CEO of BERNAMA. They noted that the continued expansion of the Batu Kawan Industrial Parks (BKIP 1,2 & 3) and Bandar Cassia Technology Park (BCTP) has attracted multinational and high-value industries, driving the need for modern, well-connected office spaces to support business operations. Reflecting this demand, Capstone Corporate Suites, a 36-storey office tower development by PE Hospitality (Penang) Sdn Bhd, a member of PE Land is set to become Penang Mainland’s first Grade-A and GBS office tower. In her speech at the event, Joanna Ling, CEO of PE Holdings Group – the parent company of PE Land – announced an important milestone for Capstone, saying it will officially house the Regional Office of the PE Land Group, occupying 35,000 sq. ft. within the development. “This reflects our long-term commitment to Batu Kawan and our confidence in its future as a business destination”. “Capstone Corporate Suites is poised to be the crown jewel of Bandar Cassia, the first Grade A office tower on Penang Mainland, setting a new benchmark for workspace quality in the region.” She said Capstone has been also recognised as the first GBS-ready office building on Penang Mainland, positioning it to attract high-value service industries to the area. Built to GreenRE Gold standards, Capstone Corporate Suites reflects PE Land’s commitment to ESG-driven development. PE Land is also in discussions with International Workplace Group to bring Regus to Capstone, potentially establishing its 8th workspace in Penang, and its first in Bandar Cassia. Meanwhile, in her analysis of property transactions in Batu Kawan, Jacqueline Lim said the past decade pointed to a market that has been steadily moving up the value chain. “Data from 2016 to 2025 shows a gradual thinning of sub-RM300,000 deals, alongside a growing concentration in mid-tier price bands, indicating rising buyer purchasing power and a shift in product positioning. “Historically, landed demand was concentrated below RM400k. That is still an important base, but the market is no longer defined only by that range. The appearance of more transactions above RM500,000+ shows buyers are willing to pay for better products, better locations, larger homes, and more self-sustaining neighbourhoods.” Concurring with this growth for Batu Kawan, Ho Chin Soon said the growth from 1995 showed to 2025 indicated that Penang’s “locational centre of gravity for Penang is heading Southeast towards Bandar Cassia.” Datuk Yong Soo Heong, in his presentation, “Batu Kawan: From Backwater to Beacon” cited Penang Chief Minister Chow Kon Yeow’s statement that the “future of Penang is in Prai, and the future of Prai is in Batu Kawan“, underscoring its growth over the years in line with global supply chains in electronics, automotive and medical technology. In the last 12 years, foreign direct investment has poured in, transforming the landscape into Malaysia’s premier industrial cluster with Bandar Cassia as its crown jewel.    Capstone Corporate Suites will offer 395 office units with flexible layouts, catering to a range of occupiers from multinational corporations to small and medium enterprises, as well as startups. Complementing the office component are retail and lifestyle spaces designed to support a more integrated work environment. Ho Chin So, Fellow of the Royal Institution of Surveyors Malaysia, and Chairman of Ho Chin Soon Research and Hong Onn Enlightens, explaining the process of how an area develops into a gravitational centre. Strategically located within Bandar Cassia’s central business district, the development is connected via the Second Penang Bridge and the North-South Expressway, with access to key transport hubs including Penang Sentral and Penang International Airport, facilitating both domestic and international business connectivity. The building will also incorporate sustainability features aligned with green building standards, alongside digital infrastructure to support business continuity and technology-driven operations. Capstone Corporate Suites has a gross development value of approximately RM500 million and is targeted for completion in the second quarter of 2028, with units priced from RM828,000.  As Bandar Cassia continues to evolve into a live-work-play environment, demand for quality office space is expected to grow in tandem with its expanding economic base.  

TSR Capital Bhd’s wholly-owned unit, TSR Bina Sdn Bhd, has secured a RM34 million contract for a flood mitigation project along the East Coast Expressway, the company said in a Bursa Malaysia filing. The contract, awarded by AFA Construction and Engineering Sdn Bhd, is set to commence this month and is expected to be completed by the fourth quarter of 2027. The project covers earthworks and other associated civil engineering works under Package 3B of the East Coast Expressway Phase 1 flood mitigation project. TSR Capital said the contract is anticipated to boost the group’s earnings and net assets for the financial year ending June 30, 2026, and throughout the project’s duration. In a statement, TSR Capital Executive Director Lim Dian Ping said the award highlights the group’s expertise in infrastructure and civil engineering projects. “Flood mitigation is a key part of Malaysia’s infrastructure development, and we are proud to contribute to initiatives that improve environmental sustainability and public safety,” he said. Lim added that the group is committed to delivering the project efficiently and to the highest standards of quality, safety, and environmental compliance. He noted that the contract also strengthens TSR Capital’s position in the infrastructure sector and provides momentum to pursue similar projects in the future.

Topmix Consolidated Bhd has acquired a parcel of land in Johor for RM19 million, marking a strategic expansion of its property portfolio in the southern region of Peninsular Malaysia. The land acquisition is part of Topmix’s ongoing efforts to strengthen its presence in key growth areas and supports its medium- to long-term development plans. The company did not disclose the size of the land or the specific development plans but indicated that the acquisition aligns with its strategy to enhance its property development and investment footprint. Industry analysts said such acquisitions allow developers like Topmix to secure prime land for future projects, taking advantage of Johor’s growing industrial, residential, and commercial demand driven by its proximity to Singapore and rising local economic activity. Topmix’s management noted that the purchase will be funded from internal cash reserves and bank borrowings, ensuring a balanced capital structure while allowing flexibility for future development initiatives. The move comes amid increasing investor interest in Johor’s property market, supported by infrastructure projects and strong cross-border economic activity.

HUME Cement Industries Bhd is exploring ways to diversify its revenue streams beyond cement, following its decision to exit the loss-making concrete segment. The company is in the process of selling Hume Concrete Sdn Bhd to YTL Corp Bhd for RM215 million, a move aimed at focusing on core operations and reallocating capital to its cement business. Tan: We have consistently demonstrated our commitment as a reliable business partner, having supported several major national projects, including The Exchange 106, Merdeka 118 and the ECRL [East Coast Rail Link].  The sale, approved by shareholders on March 4 and expected to close by the second quarter of 2026, will generate a disposal gain of RM185.74 million. Of this, RM148.9 million is earmarked for investment and expansion within Hume Cement, while RM63.8 million will strengthen working capital. The divestment also reinforces the group’s net cash position, which stood at RM87.27 million at the end of December 2025. William Tan Kok Siang, newly appointed group managing director, said the company is exploring opportunities in non-cement segments, including niche technologies that could mark its entry into new business areas. “The traditional precast business has low barriers to entry. We’re looking at innovative technologies to diversify the group’s business,”. Hume Cement operates a fully integrated plant in Gopeng, Perak, with an installed capacity of three million tonnes of clinker and five million tonnes of cement per year, currently running at 60–70% utilisation. The company is the third-largest cement producer in Malaysia, behind Malayan Cement Bhd and Cement Industries of Malaysia Bhd (UEM Group). The group’s profitability has improved steadily, with net earnings of RM210.94 million in FY2024 and RM223.17 million in FY2025, up from RM60.03 million in FY2023. For 6MFY2026, net profit fell slightly 2.7% to RM125.46 million, affected by the absence of a one-off gain recorded in the previous year. Tan expects FY2026 to be stronger, supported by robust market demand and higher margins. Hume Cement is also investing in sustainability initiatives, including two new green cement products expected by year-end, which will account for 30–40% of future sales. Additionally, the company is spending RM100 million on a waste heat recovery system, anticipated to cut electricity use by 20% and reduce Scope 2 CO2 emissions by 50,000 tonnes annually. The group continues to prioritise high-margin projects over volume-driven work, with past contributions to major national projects like The Exchange 106, Merdeka 118, and the East Coast Rail Link (ECRL). Tan also highlighted efforts to optimise costs, including a hands-on approach to managing coal and electricity expenses. Currently focused on the domestic market, Hume Cement has stepped back from exports due to higher manufacturing costs and taxes. The group is 72.77% owned by Tan Sri Quek Leng Chan’s Hong Leong Group and trades at a price-to-earnings ratio of 11.1 times, compared to 12.2 times for larger peer Malayan Cement. Analysts at UOB Kay Hian have set a target price of RM4.87, implying a 44% upside. Hume Cement’s share price has risen 32.4% over the past year.

IJM Corporation Bhd has secured a second contract from Sime Darby Property Bhd to develop a hyperscale data centre at Elmina Business Park in Selangor, with the latest award valued at RM658.01 million. In exchange filings, the companies said the contract covers construction, completion, testing and commissioning of the data centre, including ancillary facilities, on a site spanning approximately 77 acres. The project forms part of the broader data centre development at Elmina. Construction is scheduled to commence in the second quarter of 2026, with completion targeted for the third quarter of 2027. With this latest award, IJM’s total contract value for works at the Elmina project now exceeds RM1.9 billion. According to Sime Darby Property, IJM was selected after competing against three other contractors in the final stage of the tender, following a pre-qualification process that involved nine companies. The winning bid was evaluated based on commercial considerations, capacity, technical expertise, and performance in the earlier Package 1 works. Shares of IJM rose four sen, or 1.83%, to RM2.23 at the midday trading break on Wednesday, giving the group a market capitalisation of about RM8.13 billion ahead of the announcement.