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Discussion Starter · #1 ·
Mah Sing plans RM7.5b township

By Levina Lim of
Tuesday, 12 August 2014 15:21

KUALA LUMPUR: Mah Sing Group Bhd, the country’s second-largest property developer by sales value, plans to develop a gated- and-guarded township with a potential gross development value (GDV) of RM7.5 billion on a 960-acre (388.5ha) tract of prime freehold land in Seremban, Negeri Sembilan.

The proposed township will be its biggest project in the south of the Klang Valley.

“Based on preliminary plans, the proposed development shall comprise a gated-and-guarded lifestyle township with offerings that appeal to the mass market, and will consist of terraced homes, superlink homes, semi-detached homes, bungalows, commercial elements and a clubhouse,” Mah Sing said in a filing with Bursa Malaysia yesterday.

Prices of the landed residences will start from RM350,000 per unit.

“The land is strategically located along the North-South Expressway and is a mere 8km from the Senawang toll plaza with a frontage of 2.5km along the North-South Expressway,” it said.

To enhance the proposed township’s accessibility and connectivity, Mah Sing plans to build an interchange connecting the land to the North-South Expressway and the proposed Senawang-KLIA Highway.

In the same filing, Mah Sing said its unit Grand Prestige Development Sdn Bhd yesterday signed an agreement with three individuals to acquire the Seremban land for RM359.56 million, or RM8.60 per sq ft, cash. The vendors, Poh Yong Cak, Lim Kim Chong and Sam Chien [email protected] Choy Cheong, are the surviving trustees of the land.

Currently, a big portion of the land is planted with oil palm trees.

The proposed acquisition is expected to be completed in the first half of 2015.

“Grand Prestige will be submitting the proposed development plans to the relevant authorities for approval. Therefore, it is too preliminary at this stage to ascertain the total development cost and the expected profits to be derived from the proposed development,” said Mah Sing.

Subject to securing the authorities’ approval, the project is expected to commence in 2015 and will be developed over a span of seven to eight years.

Mah Sing intends to fund the proposed acquisition of the land and the development through a combination of internal funds and/or bank borrowings.

“The proposed acquisition is timely as it allows the Mah Sing group of companies to amass some 1,400 acres of land (inclusive of the group’s remaining land) for the expansion of its existing presence [in the] south of Kuala Lumpur and be better positioned to reach out to a broader range of customers by offering products suitable for the mass as well as the upgrader market,” the property developer said.

“We are excited about this new project. The North-South Expressway is the main artery that connects the west coast of Peninsular Malaysia. Traditionally, developments along this highway have always done well,” Mah Sing group managing director and chief executive Tan Sri Leong Hoy Kum said in a statement yesterday.

“We see a lot of similarities between this new project and our well-received Southville City project which is also sited, and has a long frontage, along the North-South Expressway,” he added.

He noted that the proposed township stands to benefit from the Klang Valley National Key Economic Area transformation plan due to its location at the entrance of the Klang Valley corridor.

The land acquisition will see Mah Sing’s land bank increasing by more than 35% to 3,670 acres with total GDV and unbilled sales of more than RM41 billion.

The group said it will continue to actively search for strategic land banks which fit well with market demand trends.

Mah Sing shares closed up one sen or 0.42% at RM2.38 yesterday, bringing its market capitalisation to RM3.47 billion.

In a note to clients yesterday, CIMB Research viewed the acquisition positively, saying the land price is “fair” and that Seremban is a new growth region at the outer reaches of Greater Kuala Lumpur.

“We are positive on the acquisition as the land cost appears attractive at only 4.8% of GDV, while Seremban can be considered an untapped and lucrative property market.

“A new link house in Seremban costs RM300,000 to RM500,000, while a similar link house in Kuala Lumpur costs RM1 million to RM2 million,” the research house added.

13,787 Posts
Discussion Starter · #2 ·
Mah Sing finds caveat lodged on Seremban land

28 August 2014

KUALA LUMPUR: Mah Sing Group Bhd said it has discovered that a caveat has been lodged on the piece of freehold land measuring 1,051 acres (425ha) in Mukim Rantau, Seremban that the group is in the process of acquiring for RM359.557 million in cash.

In a filing with Bursa Malaysia yesterday, Mah Sing said the solicitors of its wholly-owned subsidiary, Grand Prestige Development Sdn Bhd, had conducted a land search on Aug 15, 2014 and subsequently discovered that a caveat was lodged on Aug 8 this year.

Mah Sing said a further instrument search on the details of the said caveat was carried out on Aug 22, 2014.

“The company is currently seeking clarification from the vendors and concurrently [we are] evaluating our options. The company will decide on its next course of action and will make the necessary announcements, where applicable,” it said.

To recap, Grand Prestige on Aug 11, 2014 signed the sale and purchase agreement (SPA) with the respective vendors for the proposed acquisition of the 1,051-acre land in Seremban.

Mah Sing proposes to develop a township there with a potential gross development value (GDV) of RM7.5 billion. Subject to the authorities’ approval, work is expected to commence in 2015, while the township will be developed over a span of seven to eight years.

The land is freehold and the terrain is generally flat. Currently, a major portion of the land is planted with oil palm trees.

A land search conducted earlier on Aug 7, 2014 showed that there was no caveat lodged on the land.

Furthermore, the vendors had assured Mah Sing that there were no encumbrances on the land, except for the intended acquisition and the right of way for electricity lines.

The vendors, namely Poh Yong Cak, Lim Kim Chong and Sam Chien Kiong, are the surviving trustees appointed by all the registered and beneficial owners of the land as their sole and absolute trustees.

According to Mah Sing, the proposed land acquisition will result in the group’s first foray into Negeri Sembilan.

Its proposed gated and guarded lifestyle township will comprise terrace and superlink houses that are aimed at first-time home buyers, and an exclusive selection of semi-detached houses and bungalows for upgraders.

Last year, Mah Sing also faced hiccups in the purchase of a 1,351-acre land in Pasir Gudang, Johor for RM401.2 million cash, due to caveats lodged on the land. The issue has since been resolved.

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