PETALING JAYA: In its first land-banking exercise this year, Mah Sing Group Bhd has bought 6.55 acres in Sungai Buloh for RM85mil.
The land, adjacent to the Rubber Research Institute of Malaysia, will be used for an RM800mil integrated development called D'sara Sentral.
According to a statement, the project, with three components, will be developed over three to five years and linked to an upcoming MRT station via a pedestrian bridge.
This would be the first station after the Sungai Buloh terminal, and D'sara Sentral would be one of the first developments in the Klang Valley with a direct link to a MRT station, the company said.
D'sara Sentral is located in Seksyen U19 at the junction of Jalan Welfare along the main thoroughfare of Jalan Sungai Buloh-Shah Alam.
Its components include SoVo (small office versatile office), which forms 20% of the development and retail space which takes up 15%. The largest portion will be the serviced residence.
Mah Sing said phase 1, comprising the SoVo and retail, would start from 750 sq ft and RM650 per sq ft, while the registrations of interest for the residences will be opened in the third quarter of this year and preview in the fourth quarter.
The firm acquired the land through its wholly-owned unit Intramewah Development Sdn Bhd yesterday. At RM85mil, the land cost translates to 10.6% of D'sara Sentral's gross development value (GDV) and about RM298 per sq ft.
Some 15%, or RM12.75mil, of the transaction will be paid upon the signing of the sale and purchase agreement, and the balance in three tranches over a period of between six and 16 months based on the timing of specified milestones in the project's planning approvals, Mah Sing said.
With this acquisition, the company has 41 projects with remaining GDV and unbilled sales of approximately RM19.7bil spread across the Klang Valley, Penang, Iskandar Malaysia and Kota Kinabalu, Sabah.
“We see pent-up demand from the large pool of local upgraders, as well as investors from the nearly half a million ridership of the upcoming MRT line.
“With the scarcity of development land along the MRT line, we are confident that buyers will recognise the area's potential and how this will translate into value and returns in the near future,” group chief executive Tan Sri Leong Hoy Kum said.