Matrix Concepts to focus on Malaysian property market

KUALA LUMPUR (April 13): Matrix Concepts Holdings Bhd is putting its plans to expand its property development business overseas on hold, as it strives to cater to existing demand for properties in Malaysia.

Its group managing director said the property developer will consider whether to conduct more projects outside Malaysia, upon completion of its sole overseas development called “M.Carnegie” in Melbourne, Australia.

Lee cited differing financial planning structures between countries as a concern. 

“Construction of M. Carnegie is in progress and to date, we have achieved close to 80% sales. We aim [to achieve full] vacant possession by the first quarter of 2018 (1Q2018),” Lee told reporters after a joint venture (JV) and shareholders agreement signing ceremony with Japanese companies Nissin Ex Co Ltd (NECL) and Nihon House Corp (NHC) today.

“After this project, we’ll see if we want to continue expanding here. Financial planning [for property projects] in Malaysia and Australia are different,” he said.

“For now, we will concentrate on the Malaysian market. The demand here still exceeds supply. For example, in developed countries such as the UK, the US, Australia and Singapore, the average number of people per household is between 2½ to three, whereas in Malaysia, it is six,” he added.

Meanwhile, the Negeri Sembilan developer is teaming up with NECL and NHC to set up a plant in Sendayan TechValley in the state to manufacture pre-fabricated building materials using the Industrialised Building System (IBS) method.

The partnership sees the formation of a JV company called Matrix IBS Sdn Bhd, in which Matrix Concepts holds a 80% stake, NECL a 12% stake and NHC the remaining 8%.

The plant, which is set to commence operations in the third quarter of 2018 and has capacity to supply materials to 700 terrace houses a year, will produce pre-cast IBS products mainly for the group’s future housing development projects.

At 3.15pm, Matrix Concepts’ share price was down one sen or 0.39% at RM2.54, with 394,600 shares done, valuing the group at RM1.46 billion. — theedgemarkets.com

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