Malaysia Court Auctions Two Country Heights Subsidiary Assets With RM207.8 Million in Reserve Prices

Two properties held by subsidiaries of Bursa Malaysia-listed Country Heights Holdings Bhd are going to court-ordered public auction with combined reserve prices of RM207.77 million, the first of them on 21 September 2026. The Kajang land carries a reserve price of RM55 million and the Mines Waterfront Business Park in Petaling a reserve price of RM152.77 million, with the second auction set for 4 November 2026.

What is being sold

The 21 September lot is roughly 2.5957 hectares, or 6.4141 acres, of freehold commercial land at Jalan Sinar Pagi, Country Heights, Kajang, in Selangor. It is owned by Country Heights Commercial Development Sdn Bhd (CHCD), a subsidiary of the listed parent. The land was charged as security for a S$11.5 million term loan facility, equivalent to about RM35 million, extended by CGS-CIMB Capital Pte Ltd.

The reserve price on that lot has already been cut once. At the March 2025 attempt it stood at RM69.85 million. The RM55 million reserve now set is RM14.85 million lower, a reduction of roughly 21 percent on a property that has failed to clear at auction before.

The larger asset is the Mines Waterfront Business Park in Petaling, Selangor, a leasehold property of approximately 667,147 square feet. It is held by Mines Waterfront Business Park Sdn Bhd, which is in liquidation, and was charged to MBSB Bank Bhd as security for financing facilities. Its reserve price is RM152.77 million and the auction is scheduled for 4 November 2026.

The mechanism

These are judicial auctions, not developer sales. Both are being conducted through the Malaysian courts' e-Lelong electronic auction system, each starting at 9am on its scheduled date. The sale of the Kajang land proceeds under High Court orders dated 19 November 2024 and 21 July 2026.

The route matters because it determines who controls the process and what a buyer actually receives. In a judicial auction the chargee bank enforces its security through the court rather than the borrower marketing the asset, the reserve price is set by the court rather than negotiated, and the property transfers by court order. Country Heights Holdings told the market it only became aware of the Kajang auction on 9 September 2026, through an advertisement, rather than through the process itself. That is a useful indicator of how little control a borrower retains once enforcement has started.

The company said the scheduled auction is not expected to have an immediate material impact on the group's day-to-day operations, apart from the potential loss of ownership of the property should the auction be successfully completed.

What it means for a foreign buyer

For anyone holding or considering a unit in a Country Heights scheme, the relevant fact is not the auction itself but what it says about the group's balance sheet. A listed developer whose subsidiaries are losing charged assets to bank enforcement, with one of those subsidiaries already in liquidation, is a different counterparty risk from one funding completions out of sales. Off-plan exposure to any developer in that position deserves a direct check on which legal entity is signing the sale and purchase agreement, whether that entity is the same one that owns the land, and whether the land is encumbered.

For a buyer looking at the auctions as an acquisition route, the discount is real and so is the friction. The Kajang land is commercial, not residential, and a foreign acquisition of Malaysian property requires state authority consent and clears a minimum purchase price set at state level, which is a separate approval track from the auction itself. A successful bidder at a judicial auction typically pays a deposit on the day and completes within a fixed period set by the auction conditions, which leaves little room to sequence a consent application behind the bid.

Bektu (https://bektu.com) tracks which corporate entity sits behind a Malaysian development and what that entity has actually delivered, which is the check this kind of enforcement action should trigger.

Context

Malaysia allows foreign freehold ownership of most residential and commercial property, which distinguishes it from Thailand, Vietnam and Indonesia, where foreigners are restricted to strata titles, long leases or use rights. That openness is the reason the market attracts foreign buyers at all, and it is also why counterparty risk sits at the centre of the decision: a foreign buyer holds the same title as a Malaysian buyer, so the exposure is to the developer rather than to the ownership structure.

Approval sits with state authorities rather than the federal government, and minimum purchase prices differ by state, which is why Johor, Penang and Selangor do not present the same entry requirements. Verification of the selling entity is the step that most often gets skipped, and enforcement actions like these are where the cost of skipping it shows up.