PGF Capital Berhad announced that its indirect joint venture company, Nexel Development KHTP Sdn. Bhd., has entered into a Sales and Purchase Agreement to acquire two parcels of freehold land measuring an aggregate area of approximately 9.608 acres, located at Kulim Hi-Tech Park, Bandar Kulim, Kedah from Kulim Technology Park Corporation Sdn. Bhd for a purchase consideration of RM12.7 million in cash and a consideration in kind.
NDK is a wholly-owned subsidiary of Nexel Group Sdn. Bhd. a joint venture company in which PGF Capital holds a 50.1% stake; alongside Penang-based developer Malvest Group Sdn. Bhd. with a 10.0% stake; and three individuals affiliated with Malvest holding the remaining shares. The plan is to build a mixed-use development with a Gross Development Value of RM600 million on the Land at Kulim Hi-Tech Park.
The development is to comprise of a condominium, hotel, serviced residence, and several commercial elements. The proposed hotel aims to cater to business travellers visiting the tech hub, and Nexel is in discussions with a few international brands to operate it.
The purchase consideration for the Land was arrived at on "willing buyer, willing seller" basis, taking into consideration the planned Project, and shall be funded via a combination of internally generated fund and bank borrowings, in accordance with PGF's 50.1%-stake in NDK. The Proposed Land Acquisition exercise is slated for completion by early 2026, with the Project to be developed in three phases over a six-year period thereafter.
