To build approximately 12,000 affordable homes in new Mukim Tebrau township
SHAH ALAM: Global packaging manufacturer and leading property developer Scientex Berhad is proposing to acquire 960 acres of freehold land in Mukim Tebrau, Johor Bahru for RM547.7 million, further expanding its presence in affordable housing townships across the state.
The Group’s subsidiary Scientex Lestari Sdn Bhd had today entered into a Sale and Purchase Agreement (SPA) with the land vendor Pelangi Sdn Bhd, a subsidiary of SP Setia Berhad. The land acquisition will significantly 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 Johor Bahru city centre, and is under the jurisdiction of Majlis Bandaraya Johor Bahru. Additionally, the land is accessible from major highways such as the Senai Desaru Expressway.
Scientex Berhad CEO Lim Peng Jin said, “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.”
He added Johor holds great significance as the starting point for their journey in developing affordable housing, with six townships established to date. The upcoming addition of Mukim Tebrau in their portfolio will enhance their 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 township in Mukim Tebrau and contribute to Johor’s development, said Lim.
The proposed land acquisition is subject to approval by the Estate Land Board and the Economic Planning Unit of the Prime Minister’s Department, 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 Sdn Bhd due to non-fulfilment of conditions precedent.
Upon completion of the proposed land purchase, the Group’s total landbank across Johor, Melaka, Negeri Sembilan, Selangor, Perak, Penang, and Kedah would expand from approximately 6,700 acres to around 7,660 acres.
Since 1995, the Group has completed development projects worth more than RM8.3 billion in GDV across Peninsular Malaysia. The Group’s affordable properties are priced below RM500,000 each, with the majority below the RM300,000 mark. Scientex’s ongoing property development projects have total GDV of RM3.7 billion as at April 30, 2023.
