Mah Sing calls off purchase of KL land for RM650m project

KUALA LUMPUR: Mah Sing Group Bhd has cancelled its proposed purchase of 3.56 acres of land near Taman Titiwangsa where it had earlier proposed to build affordable condominiums with a gross development value (GDV) of RM650mil.

The property company said on Thursday its unit Mah Sing Properties Sdn Bhd had terminated the conditional sale and purchase agreement (SPA) with Saw Shiuo Shyong @ Sonny Saw for the proposed acquisition of five pieces of adjoining freehold land.

It said the termination on Tuesday was “due to non-fulfillment of the conditions precedent within the CP (conditional purchase) period”.

Mah Sing said upon the termination, the vendor would refund the deposit of RM6mil, of which RM4.8mil has already been received and the balance RM1.2mil to be refunded by the Vvndor’s solicitors, together with interest earned thereon, within seven days from the date of receipt of the termination notice.

“Following the termination, the group still has 34 on-going projects which are spread out across various stages of development cycle providing growth and earnings visibility for at least the next eight years,” it said.

Mah Sing said the termination will not have any material effect on the earnings per share, net assets per share and gearing of the Group for the financial year ending Dec 31, 2017.

To recap, Mah Sing Properties had on May 17 signed the SPA under its affordable housing objective one step further with a condominium near the Taman Titiwangsa here, indicatively priced from RM485,000 per unit with built-up from 850 square feet.

The site, which is 3.7km away from Kuala Lumpur City Centre and the Petronas Twin Towers, is zoned for residential development and fronts Titiwangsa Lake Garden.  

Mah Sing had expected an estimated GDV of up to about RM650mil for the development, with purchase consideration of up to RM60mil assuming density of 350 per acre or more is obtained for the development order.