KUALA LUMPUR: Mah Sing Group Bhd
is accelerating its digital infrastructure strategy with the disposal of approximately 31.89ha (78.8 acres) of commercial land within Mah Sing DC Hub @ Southville City. The land will be sold to WG Malaysia X Sdn Bhd, a wholly owned subsidiary of an established international digital infrastructure group, for RM617.9mil, or RM180 per square foot (psf).
The transaction represents a significant monetisation of Mah Sing’s development-ready digital infrastructure landbank and validates Mah Sing DC Hub @ Southville City as a destination for large-scale digital infrastructure investment. It also allows the group to recycle capital into higher-value opportunities.
Mah Sing founder and group managing director Tan Sri Leong Hoy Kum said: “This transaction demonstrates our ability to identify emerging growth sectors early and unlock value from our landbank.
“Digital infrastructure represents a natural extension of our development capabilities, and we intend to build this into a meaningful second growth engine for Mah Sing over time.”
From land monetisation to digital infrastructure
The group’s digital infrastructure strategy is built around three complementary pathways:
- monetise: selectively monetising development-ready land
- development: building enabling infrastructure and core-and-shell facilities
- owning: pursuing income-generating digital infrastructure assets alongside experienced operators.
The transaction also has the potential to support the next phase of artificial intelligence (AI) infrastructure development at Mah Sing DC Hub @ Southville City.
The buyer has received strong interest from its associates in bringing NeoCloud and advanced Nvidia GPU computing capabilities to the development. These would complement its data centre development and operating capabilities to support high-performance AI workloads.
This further reinforces Mah Sing DC Hub @ Southville City’s potential as a significant AI and digital infrastructure ecosystem in Malaysia, while providing further evidence of demand for scalable, AI-ready data centre capacity and reliable power infrastructure to support the growth of AI workloads.
Leong says digital infrastructure is set to become a meaningful second growth engine for the group, building on its ability to unlock value from its landbank.
Mah Sing’s deputy group chief executive officer Lionel Leong Jihn Haur said: “We see a strong opportunity to bring international AI and cloud players into Malaysia.
“The demand for next-generation AI computing infrastructure creates opportunities for Mah Sing to move further up the digital infrastructure value chain.
“The data centre is an important foundation for a broader AI infrastructure ecosystem.
“By working with experienced international technology and infrastructure partners, Mah Sing can build new capabilities and position itself for the next phase of digital infrastructure growth.”
In addition to unlocking land value through the transaction, Mah Sing is planning to develop a colocation data centre within Mah Sing DC Hub @ Southville City through a strategic partnership with an experienced colocation operator.
While still at a preliminary stage and subject to further assessment, the proposed development would mark a further step in Mah Sing’s expansion from land development into ownership of digital infrastructure assets.
By developing the core infrastructure and working with an experienced operator, Mah Sing aims to create recurring-income opportunities.
Beyond Southville City, Mah Sing has identified further opportunities at Meridin East in Johor Baru and MS Industrial Park @ Kulai within the Johor-Singapore Special Economic Zone (JS-SEZ).
MS Industrial Park @ Kulai has an estimated GDV of RM2.26bil and is positioned to support high-growth sectors including electrical and electronics (E&E), semiconductor, pharmaceutical and AI-related industries, with potential for digital infrastructure and related supporting assets.
The strategy provides Mah Sing with an additional avenue to unlock and recycle landbank value, diversify its earnings base and progressively build recurring-income opportunities, while retaining property development as the group’s core business.
The group aims to scale its digital infrastructure platform by leveraging its landbank, development capabilities and strategic partnerships to capture long-term opportunities arising from the continued expansion of cloud computing, AI and digital infrastructure investment in Malaysia and the region.
