Sentoria Group Bhd has confirmed that it will exit its long-delayed mixed development in Morib, Selangor, after admitting it is no longer financially able to complete the project. The 204-acre site will now be taken over by property developer Masteron Sdn Bhd.
In a filing to Bursa Malaysia, Sentoria said its wholly owned unit, Sentoria Harta Sdn Bhd, has entered into a takeover agreement with Hartanah Masteron Sinar Suria Sdn Bhd, a subsidiary of Masteron, following verification with the Companies Commission of Malaysia.
The Morib project, located on land owned by Seriemas Development Sdn Bhd, originated from a joint venture formed in 2012. Despite its scale and strategic location within Selangor, only one phase has been completed over the past decade, leaving large portions of the development stalled.
Under the agreement, Masteron will assume responsibility for outstanding liabilities tied to the project and will lead the revival of incomplete phases, as well as future development of the remaining land. The only exception is Plot L, known as RSKu Morib Anggun, an affordable housing component that will remain under Sentoria’s responsibility.
As part of the takeover, Masteron will pay RM5.25 million, with RM5 million directed to settle claims from two creditors that previously financed parts of the development. The remaining RM250,000 will be paid to Sentoria Harta as a non-refundable earnest deposit.
Sentoria’s withdrawal from the Morib project comes amid mounting financial pressure. The group was classified under Practice Note 17 (PN17) in December 2024 after its shareholders’ equity dropped to 33% of its issued and paid-up capital. For the financial year ended Sept 30, 2024, Sentoria recorded a net loss of RM89.04 million, with revenue standing at just RM7.55 million.
Further compounding its challenges, Sentoria Harta recently received a winding-up petition from Al Rajhi Banking & Investment Corporation (Malaysia) Bhd over outstanding debts amounting to RM8.69 million. Earlier this month, Bursa Malaysia granted Sentoria a six-month extension until June 3, 2026 to submit a regularisation plan to address its PN17 status.
From a broader real estate market standpoint, the takeover reflects continued interest by financially stronger developers in unlocking underutilised land assets across Selangor. While residential projects face execution risks, demand remains resilient in other segments such as industrial land in Selangor, factory developments in Puchong, and industrial property in the Subang area, supported by logistics growth and manufacturing activity. At the same time, stable occupancy in commercial property in KL and emerging demand for office space in Bukit Jalil continue to shape investment strategies across the Klang Valley.
Sentoria shares closed unchanged at 1.5 sen, giving the group a market capitalisation of approximately RM9.34 million.
