Mah Sing acquires tract for RM705m GDV project

Mah Sing managing director Tan Sri Leong Hoy Kum (third from right) with representatives of the vendor, JL99 Holdings Bhd Bhd, at the signing ceremony.

KUALA LUMPUR: Mah Sing Group Bhd has acquired a 5.47-acre tract in Mukim Batu, Taman Metropolitan, in Kepong for the development of its RM705mil GDV M Luna serviced apartments.

Mah Sing said in a statement that the tract, purchased for about RM94.8mil, is ready for immediate development as it comes with an approved development order for serviced apartments.

"This is our second land acquisition for 2019, and this deal reflects Mah Sing’s ability to acquire reasonably priced prime lands which are ready for quick-turnaround," said Mah Sing founder and group managing director Tan Sri Leong Hoy Kum.

The acquisition falls in line with Mah Sing's strategy of launching "luxury you can afford" products for the mass and mid-range market.

"Our strategy is on the right track supported by the demand-supply gap in Malaysia, whereby there are 212,744 new households formed per year compared to 88,000 new houses completed per year (2012 to 2017)," said Leong.

According to the statement, the most affordable units in the development would have an indicative built up of 700 sq ft and an indicative starting price of RM385,000.

The project will be developed over four years with a registration of interest exercise planned for 4Q19, which would allow the group to ride on the extended timeline for the national Homeownership Campaign.

The development is situated 200m from the Kepong Metropolitian park and is 5km from Mah Sing's Lakeville Residence in Taman Wahyu, Batu Caves.

Residents will have good accessibility to the project as the MRR2 is located next to the project while Jalan Kuching is 2.3km away.

The upcoming Metro Prima MRT2 Station, scheduled for operation in 2021, is only 3.3km from the project while the Taman Wahyu KTM station is situated 4km away.

With the land purchase, Mah Sing's prime landbank has grown to 2,104 acres with total remaining GDV and unbilled sales of RM25.84bil to sustain growth over eight to nine years.

As at March 31, the group has cash and bank balances of RM1.3bil, which it says will drive its key strategy to replenish landbank, especially in the Klang Valley.