10 Dec 2024 PGF Capital’s JV to undertake RM600mil development in Kulim Hi-Tech Park
The company’s indirect joint venture company, Nexel Development KHTP Sdn Bhd, has signed a sale and purchase agreement to acquire the land in Kulim Hi-Tech Park from Kulim Technology Park Corporation Sdn Bhd for RM12.7 million.
Source: https://www.nst.com.my/property/2024/12/1146505/pgf-capitals-jv-undertake-rm600mil-development-kulim-hi-tech-park
KUALA LUMPUR: PGF Capital Bhd is acquiring two parcels of freehold land in Kedah, which will be developed into a mixed-use project with a gross development value (GDV) of RM600 million.
The company’s indirect joint venture company, Nexel Development KHTP Sdn Bhd, has signed a sale and purchase agreement to acquire the land in Kulim Hi-Tech Park from Kulim Technology Park Corporation Sdn Bhd for RM12.7 million.
Nexel Development, a wholly owned subsidiary of Nexel Group Sdn Bhd, is a joint venture where PGF Capital holds a 50.1 per cent stake, Penang-based property developer Malvest Group Sdn Bhd owns 10 per cent, and three individuals affiliated with Malvest hold the remaining shares.
The RM12.7 million purchase price was negotiated on a “willing buyer, willing seller” basis, factoring in the planned project.
The acquisition will be funded through internally generated funds and bank borrowings, aligned with PGF’s 50.1 per cent stake in Nexel Development.
The land acquisition is expected to be finalised by early 2026, with the project developed in three phases over six years, PGF said in a statement.
The intended development will feature a condominium, hotel, serviced residences, and various commercial components.
The proposed hotel is intended to cater to business travellers visiting the tech hub, with Nexel Group currently in discussions with several international brands to manage the property.
PGF Capital’s executive director and group chief executive officer, Fong Wern Sheng, highlighted the strategic significance of the acquisition.
“This will certainly create significant demand for both housing and commercial spaces as well,” he said.
He noted that Kulim Hi-Tech Park’s strategic location, proximity to Penang, and established infrastructure make it highly attractive to multinational companies (MNCs), especially amid trade shifts like the China+1 strategy.
Fong emphasised that the rise in industrial activities has led to a population increase, creating a demand for housing 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 added.
The project is targeted to launch in early 2026 upon receipt of regulatory approvals.
