KUALA LUMPUR (July 23): Mah Sing Group Bhd said today it is acquiring a 5.47-acre (2.19ha) 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 today, Mah Sing said the land is located about 200 metres 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.
In a separate Bursa Malaysia filing today, Mah Sing said its wholly-owned subsidiary Vienna Home Sdn Bhd had today entered into a conditional sale and purchase agreement with JL99 Holdings Sdn Bhd for the proposed acquisition.
"Barring any unforeseen circumstances, the proposed acquisition is expected to be completed in the fourth quarter of 2019," Mah Sing said.
In the statement, Mah Sing said : "The land is ready for immediate development as it comes with 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 from RM385,000," the group said.
Mah Sing founder and group managing director Tan Sri Leong Hoy Kum said in the statement the land acquisition is the company's second for 2019, and the deal reflects Mah Sing's ability to acquire reasonably priced prime land which are ready for quick turnaround.
"The land is ready for immediate development as it comes with 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 improvement in the vicinity. This is a good location for a niche development," Leong said.
According to Mah Sing's statement, the land acquisition will increase the company's prime landbank to 2,104 acres (841.6ha), with total remaining GDV and unbilled sales of RM25.84 billion, which can sustain the company's growth over the next eight to nine years.
"The group currently sits on healthy balance sheet with cash and bank balances of RM1.3 billion for the quarter ended March 31, 2019, which will allow the group to drive its key strategy in replenishing landbanks especially in the Klang Valley area," Mah Sing said.