Mah Sing expects better sales in 2015, driven by RM5.96b launches

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KUALA LUMPUR (Jan 7): Mah Sing Group Bhd, the country's second largest property developer by sales value, expects to post higher sales this year, driven by pipeline launches worth RM5.96 billion in gross development value (GDV).

"We are targeting a minimum of RM3.43 billion in sales in 2015, same as the amount of sales in 2014, but of course we are aiming to do better," its group managing director and chief executive officer Tan Sri Leong Hoy Kum told a press conference after the group's extraordinary general meeting (EGM) today.

New launches will come from its Bandar Meridin East township in Iskandar, Johor Baru, M Residence 3 in Rawang, Selangor, Icon Residence in Georgetown, Penang and Star Residence in Subang Bestari, Selangor.

The launches have a combined GDV of RM5.96 billion.

Earlier at the EGM, Mah Sing shareholders approved its proposed rights issue with warrants to raise up to RM630 million, out of which RM530 million has been earmarked for the acquisition of landbanks and property development activities in Puchong and Seremban.

Going forward, Leong said the focus will be on the affordable housing segment, in line with the government's initiative to encourage home ownership, under the Malaysian Youth Housing Scheme outlined in Budget 2015.

"Our strategy this year is to keep it affordable. This is in line with market needs and also in response to the government's move for affordable housing," said Leong.

For 2015, about 84% of Mah Sing's residential launches will be priced below RM1 million, 80% below RM700,000, and 44% of its launches priced below RM500,000.

Mah Sing shares were unchanged at RM2.28 at the morning close, bringing a market capitalisation of RM3.37 billion.