THE MALAYSIAN RESERVE. 12TH JULY: Scientex Bhd plans to acquire 960 acres (388.5ha) of land in Johor Baru ( JB) for RM547.7 million. The acquisition is part of its strategy to expand its presence in affordable housing townships and align with its vision to build 50,000 affordable homes by 2028.
The group’s subsidiary, Scientex Lestari Sdn Bhd, had last week entered into a sale and purchase agreement (SPA) with the land vendor, Pelangi Sdn Bhd, a subsidiary of SP Setia Bhd.
The land acquisition will expand the group’s property development footprint in Johor, adding on to its six existing townships located in Pasir Gudang, Kulai, Skudai, Senai, Pulai and Kota Tinggi.
The group intends to launch a new mixed township development project on the land with an estimated 12,000 affordable homes to be built. The project’s gross development value (GDV) is yet to be determined.
The land is located within close proximity of the JB city centre and is under the jurisdiction of the JB City Council. Additionally, the land is accessible from major highways such as the Senai Desaru Expressway.
“Scientex is committed to fulfilling the growing demand for affordable housing by the local communities. We have built a solid reputation since 1995 synonymous with promoting homes affordability and we continue to identify strategic locations throughout Malaysia to launch new township developments,” said its CEO Lim Peng Jin in a statement.
He said Johor holds great significance as the starting point for the company’s journey in developing affordable housing, with six townships established to date.
He said the upcoming addition of Mukim Tebrau in its portfolio will enhance Scientex’s ability to meet local population needs.
“The anticipated new mixed township development in Mukim Tebrau aligns with our vision of constructing 50,000 affordable homes across Peninsular Malaysia by 2028.
“As at June 30, 2023, we have reached the milestone of delivering 29,000 homes, which reflects our steady
progress. This strategic expansion enables us to create a vibrant town-ship in Mukim Tebrau and contribute to Johor’s development,” he said.
The proposed land acquisition is subject to approval by the Estate Land Board and the Economic Planning Unit of the Prime Minister’s Department of Malaysia and, if required, the approval of Scientex’s shareholders.
The acquisition will be financed by internally generated funds and bank borrowings, with completion targeted for the first half of 2024.
Tha same land was previously proposed for acquisition by the group’s subsidiary Scientex Quatari Sdn Bhd in 2021, but was terminated in March 2023 following a lapse in the SPA with Pelangi due to non-fulfilment of conditions precedent.
Upon completion of the proposed land purchase, the group’s total landbank across Johor, Melaka, Negri Sembilan, Selangor, Perak, Penang and Kedah would expand from approximately 6,700 acres to around 7,660 acres.