Property developer IGB Bhd has obtained approval from the Ministry of Economy Malaysia for its proposed RM214.97 million acquisition of two leasehold land parcels in Johor Bahru. The acquisition is being carried out through a joint venture with a Johor state-linked entity.
According to a filing with Bursa Malaysia, the approval letter from the ministry was received on March 6, allowing the previously conditional sale and purchase agreement (SPA) to become unconditional as of March 11.
The regulatory clearance comes after the parties earlier agreed in February to extend the SPA’s conditional period by three months, providing additional time for the government to review and approve the transaction.
The acquisition will be executed via Enrich Horizon Sdn Bhd, a special purpose joint venture company formed between IGB Corporation Bhd, a wholly owned subsidiary of IGB, and Southkey City Sdn Bhd, a company owned by the Johor state government.
Under the arrangement:
IGB Corporation Bhd will hold 70% equity in the joint venture vehicle.
Southkey City Sdn Bhd will retain the remaining 30% stake.
The joint venture company will acquire the two land parcels, which are currently owned by Southkey City.
IGB Corporation plans to finance its RM173.1 million equity contribution through internally generated funds and potentially bank borrowings. Meanwhile, Southkey City’s RM74.2 million contribution will be funded through proceeds from the land disposal.
The two land parcels are strategically located adjacent to the group’s existing Mid Valley Southkey development in Johor Bahru.
IGB intends to incorporate the newly acquired land into a future mixed-use development, which will complement the existing commercial, retail, and hospitality assets within the rapidly developing Southkey precinct.
The company has previously outlined its ambition to transform the Southkey area into a major integrated urban destination comparable to Mid Valley City, one of the largest mixed-use developments in the capital.
Large-scale mixed-use projects often serve as catalysts for surrounding property markets. Developments that combine retail, office, hospitality, and residential components typically stimulate economic activity and improve urban connectivity.
Similar integrated developments have supported demand for commercial property in Kuala Lumpur, particularly in emerging business districts offering modern office space in Bukit Jalil.
Meanwhile, the broader Selangor market continues to see strong interest in industrial land in Selangor, especially from logistics, manufacturing, and technology companies expanding their operations in Malaysia.
Industrial hubs such as Puchong remain attractive for businesses searching for factory space in Puchong, while the Subang area continues to attract companies seeking well-connected industrial property in the Subang area due to its proximity to highways, airports, and established business clusters.
Following the announcement, shares of IGB Bhd closed 11 sen higher at RM3.86, representing a 2.93% gain for the day. The property group currently holds a market capitalisation of approximately RM5.24 billion, with its share price rising more than 27% since the beginning of the year.
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 12 Mar 26
Malaysia