PGF Capital buys land in Kulim Hi-Tech Park for RM600 mil GDV mixed development project

• The Penang-based insulation products manufacturer, through its indirect joint venture (JV) company Nexel Development KHTP Sdn Bhd, is purchasing the land from Kulim Technology Park Corporation Sdn Bhd (KTPC) for RM12.7 million.

KUALA LUMPUR (Dec 10): PGF Capital Bhd (KL:PGF) is acquiring two parcels of freehold land, totalling approximately 9.608 acres in Kulim Hi-Tech Park, Kedah, for a mixed development project — that will include a condominium, hotel, serviced residences, and several commercial elements — with a gross development value (GDV) of RM600 million.

The Penang-based insulation products manufacturer, through its indirect joint venture (JV) company Nexel Development KHTP Sdn Bhd, is purchasing the land from Kulim Technology Park Corporation Sdn Bhd (KTPC) for RM12.7 million.

Nexel Development is a wholly owned subsidiary of Nexel Group Sdn Bhd, a joint venture company in which PGF holds a 50.1% stake, while Penang-based property developer Malvest Group Sdn Bhd holds a 10% stake. Three individuals affiliated with Malvest hold the remaining shares.

According to PGF, the acquisition price of the land was determined on a "willing-buyer, willing-seller" basis and will be financed through a combination of internally generated funds and bank borrowings.

As of the end of August, PGF Capital reported cash and cash equivalents of RM43.94 million and total borrowings of RM26.75 million.

The proposed land acquisition is expected to be completed by early 2026, pending regulatory approvals, with the project to be developed in three phases over six years thereafter.

“This is a strategic move for our property development division, and we are excited for the opportunity to bring a vibrant mixed-use development that addresses both residential and commercial demands in this rapidly growing tech hub. There is currently a workforce of about 45,000 at Kulim Hi-Tech Park, and this figure is set to grow rapidly as more multinational companies establish operations at the industrial hub,” said PGF Capital executive director cum group chief executive officer Fong Wern Sheng in a statement.

Further, he said that the Kedah State Development Corporation-owned KTPC, the developer and manager of Kulim Hi-Tech Park, has announced plans to expand the industrial park’s area from 5,557 acres to 12,000 acres. This expansion is expected to generate significant demand for both housing and commercial spaces.

Fong added that there is currently a shortage of housing options in the area, particularly those tailored to the needs of a skilled workforce, including expatriates.

“Together with our partner, Malvest, the project will not only add valuable housing options but will also serve as a catalyst for business and leisure, strengthening Kulim Hi-Tech Park’s status as a high-tech economic hub,” he said.

PGF's share price closed up two sen or 0.93% at RM2.16 on Tuesday, valuing it at RM415.1 million.

Looking to buy a home? Sign up for EdgeProp START and get exclusive rewards and vouchers for ANY home purchase in Malaysia (primary or subsale)!