Thursday 28 Mar 2024
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This article first appeared in The Edge Financial Daily on July 24, 2019

KUALA LUMPUR: Mah Sing Group Bhd is acquiring a 5.47-acre (2.21ha) prime land in Mukim Batu, Taman Metropolitan, Kepong here for about RM94.8 million. The land is earmarked for development of an estimated RM705 million worth of serviced apartments known as M Luna, the property developer said.

In a statement yesterday, Mah Sing said the land is located about 200m from the Kepong Metropolitan Park. The land is also next to the Middle Ring Road 2, which will provide residents direct access to the project.

Mah Sing’s wholly-owned subsidiary Vienna Home Sdn Bhd yesterday entered into a conditional sale and purchase agreement with JL99 Holdings Sdn Bhd for the proposed acquisition, which it expects to be completed by the fourth quarter of this year.

“The land is ready for immediate development as it comes with an approved development order (DO) for serviced apartments.

“Based on preliminary plans, M Luna will have a GDV (gross development value) of approximately RM705 million and is planned for two blocks of serviced apartments with a ‘luxury you can afford’ concept. The most affordable units would have an indicative built-up from 700 sq ft and indicative starting price of RM385,000,” the group said.

Mah Sing founder and group managing director Tan Sri Leong Hoy Kum said the acquisition is the group’s second in 2019, and that the deal reflects Mah Sing’s ability to acquire reasonably priced prime land ready for a quick turnaround.

“The land is ready for immediate development as it comes with [the] DO obtained and the vendors had paid charges pursuant to the DO to the relevant authorities. The strategic location will be even better enhanced with some proposed infrastructure improvements in the vicinity. This is a good location for a niche development,” Leong said.

The acquisition will raise the group’s prime land bank to 2,104 acres, with a total remaining GDV and unbilled sales of RM25.84 billion, which can sustain the group’s growth over the next eight to nine years.

“The group currently sits on a healthy balance sheet with cash and bank balances of RM1.3 billion [as of] the quarter ended March 31, 2019, which will allow the group to drive its key strategy in replenishing its land bank, especially in the Klang Valley area,” Mah Sing added.

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