KUALA LUMPUR (March 14): Mah Sing Group Bhd, the country's second-largest property developer by sales value, will discuss with the vendor of a 85.43-acre piece of land in Sultan Salahuddin Abdul Aziz Shah Golf Course (KGSSAAS), Selangor, to renegotiate the terms of the sale and purchase agreement (SPA) for RM327.48 million or RM88 per sq ft.

In a statement today, Mah Sing said its wholly-owned subsidiary Enchanting View Development Sdn Bhd has proposed a time frame of six months starting today for the said discussion and renegotiation.

The discussion and renegotiation is in line with the terms of the SPA.

In a filing with Bursa Malaysia today, Mah Sing said Enchanting View has requested for a further meeting to discuss and renegotiate the terms and conditions of the sale and purchase transaction with a view to reach an amicable settlement or alternative arrangement on the transaction.

"Material developments from the discussion and renegotiation will be announced in due course," it added.

Under the SPA inked on March 12, 2014, the conditions precedent include the approval for the change of category of land use of the land, located within KGSSAAS, to residential within a year from the date of the agreement with an automatic extension of six months, as well as authoritative approval for the transfer of the land to Mah Sing.

This is dependent upon the company having obtained a separate title and re-zoning approval.

Mah Sing had proposed to develop the land into landed and high-rise residences including super link, linked semi-detached, semi-detached, bungalows and serviced apartments.

The proposed development was estimated to have a potential gross development value (GDV) of approximately RM2.5 billion and was slated for launch in 2016.

Mah Sing shares closed down one sen or 0.76% at RM1.31 today, with a market capitalisation of RM3.16 billion.