PETALING JAYA (July 2): Nestcon Bhd has received shareholder approval for its acquisition of three land parcels in Iskandar Puteri, Johor, as well as its proposed diversification into the property development sector, following resolutions passed at its extraordinary general meeting (EGM).

According to the company’s Bursa filing, all resolutions tabled at the EGM held on June 30 at DoubleTree by Hilton Shah Alam i-City were approved via poll voting and verified by an independent scrutineer.

Johor land acquisition approved

The first resolution covers the acquisition by Nestcon Bhd through its 70%-owned subsidiary Nestcon Iskandar Puteri Sdn Bhd of three freehold commercial land parcels in Mukim Pulai, Johor Bahru.

The land, measuring approximately 33,782 square metres, is located along Jalan Persiaran Afiat in Iskandar Puteri and is currently vacant with an approved plot ratio of 1:6. The purchase price is RM95 million, based on an independent valuation by Khong & Jaafar Sdn Bhd using market comparison and income approaches.

The resolution was passed with overwhelming support, recording 99.9974% approval from voting shareholders.

The acquisition will be funded through a mix of internally generated funds and bank borrowings, including RM80.8 million in term loans.

Following completion, Nestcon Iskandar Puteri plans to develop a mixed commercial and residential project comprising serviced apartments and retail units. The project carries an estimated gross development value (GDV) of RM1.37 billion and gross development cost (GDC) of RM1.03 billion, with development planned in two phases between 2027 and 2032.

Diversification into property development approved

The second resolution approves Nestcon’s diversification into property development, in addition to its existing construction, infrastructure and renewable energy businesses.

The proposal received near-unanimous shareholder support at 99.9999%.

Under the plan, the group expects the new property development segment to generate an estimated gross development profit of approximately RM336.97 million over time, subject to market conditions and project execution.

The board noted that the diversification could eventually contribute at least 25% of the group’s net profit or net assets, depending on the scale of future developments.

The move is expected to reduce reliance on its existing core businesses while creating synergies between construction capabilities and property development activities.

However, the company also highlighted key risks, including financing exposure, market conditions in Johor Bahru and execution risks related to large-scale development projects.

SPA conditions fulfilled

Separately, Nestcon confirmed that all conditions precedent under the conditional sale and purchase agreement (SPA) dated April 10, 2026 have been fulfilled as of June 30, 2026, making the agreement unconditional.

The company expects to complete the land acquisition by the fourth quarter of 2026, with diversification into property development taking effect immediately following shareholder approval.

Key Takeaways

Nestcon’s strategic move into property development marks a significant shift towards a more diversified business model, leveraging its construction expertise to capture value across the development lifecycle. The RM95 million land acquisition in Johor signals confidence in Iskandar Puteri’s long-term growth potential, while the planned RM1.37 billion GDV project highlights the scale of its development ambitions. At the same time, the group is balancing growth opportunities with financing and market risks typical of large-scale property ventures.