Country Heights scraps RM55m Kajang land auction after no bidders

KAJANG, SELANGOR, 23 SEPTEMBER 2026 —

A forced auction of Country Heights Holdings Bhd’s six-acre commercial land in Kajang, Selangor, was cancelled after failing to attract any buyers, the company confirmed in a filing Tuesday.

The land in Jalan Sinar Pagi, collateral for a S$11.5 million (RM35 million) loan from CGS International Capital Singapore Pte Ltd, was listed at a reserve price of RM55 million via e-Lelong on September 21, but the judicial auction collapsed due to a lack of bids. This follows a failed attempt in March 2025 to sell the same plot at RM69.85 million.

The cancellation underscores the deepening financial strain on Country Heights, which reported a net loss of RM6.99 million on RM6.53 million in revenue for the quarter ending August 31. The company has also extended its financial year-end from June 30 to December 31, stretching its current reporting period to 18 months.

The land’s repeated auction failures reflect broader challenges in Malaysia’s commercial property market, where distressed assets—particularly in the Kajang-Seremban corridor—have struggled to attract buyers amid softening demand and high interest rates. Bank Negara Malaysia has warned of rising loan defaults in the property sector, with non-performing loans (NPLs) for property development climbing to 4.1% in the first half of 2025, up from 3.6% a year earlier.

Country Heights’ troubles extend beyond the land sale. The company has defaulted on payments to MBSB Bank through its subsidiary Mines Waterfront Business Park Sdn Bhd, with arrears dating back to August 18, 2023. The bank has since initiated legal action, further pressuring the developer’s liquidity.

The failed auction marks the second attempt in six months to offload the Jalan Sinar Pagi parcel, which sits on prime land in Kajang—a key growth node in the Kuala Lumpur-Selangor metropolitan area. At RM55 million, the reserve price equates to roughly RM9.2 million per acre, below the RM11.5 million per acre valuation from the March auction.

Industry sources suggest the price cut failed to spur interest, citing weak investor sentiment toward distressed commercial land amid lingering uncertainty over economic recovery.

Analysts note that Country Heights’ struggles mirror those of other mid-tier developers grappling with high debt levels and shrinking margins. The company’s RM6.99 million loss in the latest quarter—despite revenue—highlights its inability to generate sustainable cash flow, raising questions about its ability to service debt or pursue new projects. With no immediate alternative buyers in sight, the land may now face a prolonged period of stagnation, further dragging down the developer’s balance sheet.

The auction’s collapse also signals potential risks for lenders, including CGS International Capital and MBSB Bank, which may need to explore alternative recovery strategies, such as restructuring or asset repossession. For Kajang’s property market, the development underscores the challenges of monetizing distressed commercial land in a slowdown, where even prime locations struggle to attract bids at depressed valuations.

Related: Country Heights Holdings Bhd · Kajang, Selangor