In a bold move set to reshape southern Malaysia’s commercial horizon, IGB Bhd has inked a RM214.97 million deal to acquire two prime land parcels adjacent to its Mid Valley Southkey development in Johor. The acquisition signals the group’s ambition to build a retail and commercial powerhouse mirroring the iconic success of Kuala Lumpur’s Mid Valley City. This expansion aims to capitalize on Johor’s rising economic prominence and its deepening ties with Singapore.
The strategic 7.97-hectare site will be developed by a newly formed joint venture, Enrich Horizon Sdn Bhd, in which an IGB subsidiary holds a 70% stake. IGB will inject RM173.1 million to fund its portion, while partner Southkey City Sdn Bhd contributes RM74.2 million through land sale proceeds. Valued at RM250 per square foot, the leasehold land expires in 2100 and is slated for a dynamic mixed-use hub featuring retail, hospitality, and commercial spaces.
Crucially, the project is positioned to benefit from major regional infrastructure developments, including the upcoming Johor-Singapore Special Economic Zone and the Rapid Transit System Link expected to launch in 2026. These initiatives promise to enhance cross-border connectivity and stimulate economic activity, providing a strong tailwind for the development. Pending approval from the Ministry of Economy—anticipated within six months—construction is targeted to begin by the first half of 2026.
Financed through a mix of internal funds and borrowings, the project underscores IGB’s confidence in Johor’s long-term growth trajectory. Investor sentiment appears optimistic, with IGB’s shares surging 17.54% year-to-date, though the stock remained unchanged at RM3.15 in the latest trading session, valuing the group at RM4.18 billion. This expansion not only reinforces IGB’s market leadership but also promises to redefine the retail and property landscape of the region.