The sukuk is secured by assets owned by the company’s subsidiaries and designated accounts.
PETALING JAYA: Mah Sing Group Bhd
’s latest acquisition of a freehold land parcel in Kuala Lumpur is expected to strengthen its presence in the city’s premium residential market, says TA Research.
The property developer acquired the 1.485-acre prime land from MUI Group for RM260mil, which will be funded through internally generated funds and bank borrowings.
Mah Sing plans to redevelop the site into a premium serviced apartment project with an estimated gross development value (GDV) of RM1.28bil, of which 20.3% accounts for the land cost.
The land cost is said to be broadly aligned with the typical 20% land-to-GDV benchmark. The price also reflects a 9.6% discount to the property’s audited net book value of RM287.69mil as at June 30, 2024.
“At RM4,019 per sq ft, the acquisition price falls within the range of KLCC Golden Triangle land transactions over the past decade, which have generally ranged between RM1,700 and RM5,400 per sq ft,” the research house said.
TA Research said the pricing was further supported by the site’s location within the Transit Planning Zone under the Kuala Lumpur Local Plan 2040, which makes it eligible for a higher plot ratio.
The expanded development potential also enhances the land’s value proposition and project feasibility.
In terms of pricing, TA Research viewed the acquisition as fair and competitive given the site’s prime location, higher plot ratio potential and recent land benchmarks in the KLCC Golden Triangle.
“The indicative average selling prices of about RM2,000 per sq ft is attractively positioned compared to nearby luxury projects such as Pavilion Square, Armani Hallson, Conlay Signature Suites, and CloutHaus Residences,” it added.
Sales momentum is expected to be gradual during the development phase, as luxury buyers typically prefer to assess completed products.
“Nevertheless, with thoughtful execution and a clear product vision, we believe the project could strengthen Mah Sing’s presence in the city’s premium residential market,” the research house said.
TA Research maintained its earnings forecasts for the group from financial year 2025 (FY25) to FY27 unchanged, pending completion of the acquisition. It also kept a “buy” call on Mah Sing with an unchanged target price of RM1.72 per share.
