Wednesday 22 April 2015

Matrix Eyes Puchong

After proposing a 1:6 bonus issue with free warrant last week, Matrix delivers good news again to its shareholders by acquiring a piece of prime development land in Puchong.

Matrix has entered into an SPA with IRDK Ventures to acquire 5.76 acres of  leasehold land in Puchong next to Setia Walk for RM95mil (RM380 psf).

IRDK has earlier launched its project IRDK Residences@Puchong on the site since Sep 2014 and the construction is currently in progress at earthwork and piling level.

IRDK Residences@Puchong comprises 2 blocks of 23-storey condominiums with 318 units, and also 28 units of 4-storey Link Villa (townhouse).

       IRDK Residences@Puchong

Matrix plans to change the development plan a bit and increase its density to 80-90 units/acre from 60 units/acre, giving it at least RM500mil GDV. IRDK is responsible to obtain such approval from the authority.

As the land is narrow and located in a clouded area, its initial approval is just 60 units/acre and developer has to build a multi-storey car park for the public next to it.

SPA signed by existing buyers with IRDK will be terminated and they are entitled to get replacement from Matrix's development.

       The construction site

I think Matrix will reduce the built-up size of condominium units to make it more "affordable" for buyers. Previous development offered large built-up size in order to reduce the density.

The location of the land is quite strategic being close to LDP, Setia Walk, IOI Mall and the upcoming LRT station.

So, despite guarded property sector outlook, Matrix should be able to generate commendable sales from this project I guess.