By Sharen Kaur - August 28, 2025
KUALA LUMPUR: Property giant IGB Bhd has struck a RM214.97 million deal with Johor's Southkey City Sdn Bhd to snap up two massive parcels of land right next to Mid Valley Southkey.
IGB stated that the Southkey expansion has the potential to replicate the size and influence of Mid Valley City in Kuala Lumpur, potentially revolutionising Johor's property and retail landscape.
The project will be spearheaded by a new joint venture, Enrich Horizon Sdn Bhd (EHSB), where IGB's subsidiary holds 70 per cent and SCSB the remaining 30 per cent.
The 7.97 hectare land parcels to be acquired by EHSB sit strategically next to IGB's ongoing mixed-use development, which already features The Mall, Mid Valley Southkey, along with commercial and hospitality components.
IGB said in a filing with Bursa Malaysia that it will inject RM173.1 million to fund its share, while SCSB contributes RM74.2 million via the land sale proceeds.
The leasehold land, valued at RM250 psf and expiring in 2100, will be transformed into a mixed-use hub combining retail, hospitality, and commercial components. Crucially, the development is expected to ride on the momentum of the Johor-Singapore Special Economic Zone (JS-SEZ) and the Johor Bahru–Singapore Rapid Transit System (RTS) Link, slated for launch in 2026.
The deal still awaits Ministry of Economy approval, likely within six months. Completion is targeted for 1H2026, with construction to be financed through internal funds and borrowings.
Source: https://www.nst.com.my/property/2025/08/1266783/johor-set-its-own-mid-valley-city-boom
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