Seal Inc Bhd has announced a major restructuring of its 31.5-acre reclamation development in Bayan Mutiara, Penang, effectively relinquishing control of the project to a new strategic investor in order to ease financial strain and reduce long-term funding exposure.
Under the proposed arrangement, Titanium Greenview Sdn Bhd — a wholly owned subsidiary of GSD Land (M) Sdn Bhd — will emerge as the controlling shareholder of the project vehicle, Mutiara Waterfronts Habitats Sdn Bhd. Titanium Greenview will hold an 82.34% stake upon completion of the exercise, while Seal’s subsidiary, Daiman Majumas Sdn Bhd, will see its shareholding diluted significantly from 80% to 17.66%.
Titanium Greenview is backed by GSD Land, which is majority-owned (70%) by Datuk Seri Khor Chong Hai, with the remaining stakes held by Khor Chong Guan (20%) and Khoek Su Kiang (10%). With the new shareholder assuming control, future funding obligations for the reclamation project will primarily fall under Titanium Greenview’s responsibility.
Seal explained that the decision reflects a strategic effort to mitigate financial and resource commitments tied to the project’s long gestation period. The company has faced revenue volatility in recent years, largely influenced by pandemic disruptions, global economic uncertainty, and geopolitical tensions. Property development and investment have contributed between 43% and 97% of group revenue over the past five years.
To stabilise earnings, Seal diversified into renewable energy in 2024 through an investment in MSR Green Energy Sdn Bhd. The latest collaboration is seen as another move to streamline exposure and focus resources on segments offering stronger growth potential.
The Bayan Mutiara reclamation project spans approximately 31.5 acres. Upon completion, Mutiara Waterfronts is entitled to 40% of the net developable land — initially 9.15 acres — which later increased to 17.156 acres following an additional 8.006-acre allocation from Penang Development Corporation (PDC).
After the restructuring:
Titanium Greenview will be entitled to 14.126 acres of developer land
Daiman Majumas will retain 3.03 acres of net developable land
Although Seal’s stake will be reduced to 17.66%, it will obtain full ownership of its 3.03 acres upon completion of the reclamation works, allowing it to benefit from potential long-term value appreciation without bearing the majority of development risk.
The transaction involves Titanium Greenview subscribing to 9.325 million new shares in Mutiara Waterfronts at RM1 each, totalling RM9.325 million. Separately, Daiman Majumas will acquire Biopolis Group Sdn Bhd’s 20% stake in the project vehicle for RM15 million.
Part of the subscription proceeds — RM9.02 million — will be used to settle outstanding sums owed to Seal. In turn, Seal will partially redeem an equivalent amount of its redeemable preference shares (RPS) and subsequently undertake to redeem all remaining RPS without claiming additional entitlements.
Following completion, Mutiara Waterfronts will cease to be consolidated in Seal’s financial statements, thereby lowering balance sheet exposure and financial risk.
The collaboration is targeted to take effect by the second quarter of 2026. While shareholder approval is not mandatory under listing requirements, Seal intends to seek approval at an extraordinary general meeting on a voluntary basis.
Seal’s move reflects a broader pattern among Malaysian property players — recalibrating risk exposure, strengthening liquidity positions, and reallocating capital to sectors with clearer growth visibility.
For investors focused on commercial property in KL, industrial land in Selangor, and growth corridors such as Bukit Jalil, Puchong, and the Subang area, similar strategic repositioning can present opportunities. Companies reducing exposure to long-horizon, capital-intensive projects often redirect resources into segments with stronger cash flow stability.
In the Klang Valley, demand for industrial property in Subang area and a factory in Puchong continues to be supported by logistics expansion, manufacturing resilience, and SME growth. Likewise, decentralised business hubs are sustaining interest in office space in Bukit Jalil, particularly among companies seeking cost efficiency without compromising connectivity.
As developers rebalance portfolios and optimise capital structures, investors tracking industrial and office assets in Kuala Lumpur and Selangor may find improved clarity in market positioning and long-term value creation strategies.
Yao Mu Realty, based in Kuala Lumpur, Malaysia, specializes in industrial real estate for factories and land, delivering professional and efficient solutions.
Posted by Yao Mu Realty Sdn Bhd on 21 Feb 26
Malaysia