MUI Properties to Acquire RM605 Million Ijok Land to Rebuild Development Pipeline

KUALA LUMPUR (Nov 27) — MUI Properties Bhd (KL:MUIPROP) is set to replenish its development pipeline with the acquisition of eight freehold parcels in Ijok, Selangor, for RM605 million. The move follows the group’s disposal of industrial land in Bandar Springhill earlier this year, which significantly reduced its land resources for future projects.

According to its Bursa Malaysia filing, the land — spanning 730.99 acres and zoned for industrial use — will be acquired by its indirect subsidiary, MUI Industrial Estates Sdn Bhd, through a conditional sale and purchase agreement (SPA). The tract enjoys strategic connectivity via the Kuala Lumpur–Kuala Selangor Expressway (LATAR) and the West Coast Expressway, positioning it well for large-scale industrial, logistics, or commercial development.

The group noted that the purchase is aimed at rebuilding its land bank after completing the RM424.43 million sale of industrial land in Bandar Springhill, which had been a major component of its previous development pipeline. Currently, MUI Properties has only 133 acres in Negeri Sembilan and 0.45 acres in Selangor earmarked for future projects.

Funding Structure and Transaction Conditions

The Ijok acquisition will be financed through a combination of internal funds and bank borrowings, with management expecting to pay 25% in cash and the remaining 75% through financing.

Of the 19 co-owners of the land, 13 — holding 69% of the undivided shares — have agreed to the SPA. MUI Industrial Estates will need to secure a court order to compel the remaining co-owners to sell their shares under identical terms.

Completion of the acquisition is contingent on several conditions, including the granting of the court order, removal of caveats, and approval from MUI Properties’ shareholders. The deal is expected to be finalised by the second half of 2027.

Long-Term Industrial Development Potential

The group said the land offers strong long-term value, particularly for industrial and logistics development due to its accessibility to Kuala Lumpur, Shah Alam, and Port Klang — three key demand drivers for industrial property in Selangor. The site is also near established industrial parks such as Eco Business Park V and Nouvelle Industrial Park, supporting potential synergies and sustained investor interest.

The sizeable acreage also enables phased development roll-outs, aligning with MUI Properties’ strategy to expand its property portfolio, diversify recurring income, and capitalise on rising demand for industrial land in the Klang Valley.

Returns from Previous Land Sale and Special Dividend

From the earlier Bandar Springhill disposal, the group received RM63.4 million in dividends through its subsidiary West Synergy Sdn Bhd. Part of this was used to fund an eight-sen special dividend totalling RM59.27 million in August.

MUI Properties remains 72.26% owned by Malayan United Industries Bhd (KL:MUIIND). Its shares closed unchanged at 26 sen on Thursday, valuing the group at RM198.7 million.

MUI Properties Swings to Profit in 1Q on Springhill Land Disposal

In a separate filing, MUI Properties announced a return to profitability for the first quarter ended Sept 30, 2025 (1QFY2026). The group recorded a net profit of RM108.61 million versus a net loss of RM11.8 million a year earlier, driven primarily by gains from the Bandar Springhill land sale.

Revenue surged more than tenfold to RM367.14 million from RM34.74 million previously, while earnings per share improved to 14.66 sen compared with a loss per share of 1.59 sen in 1QFY2025.

Looking ahead, the company expects further value creation at Bandar Springhill through ongoing land transactions, including the RM80.8 million sale to Antmed Malaysia Sdn Bhd and additional parcels sold to Gamuda.

“These milestone transactions will help transform Bandar Springhill into a dynamic high-tech hub, unlocking significant growth potential through rising industrial land values,” the group said.

MUI Properties' shares ended the day unchanged at 26 sen, with a market capitalisation of RM198.7 million.