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Mah Sing plans RM7.5b township
By Levina Lim of theedgemalaysia.com
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.
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http://www.theedgeproperty.com/news-a-views/12967-mah-sing-plans-rm75b-township.html
By Levina Lim of theedgemalaysia.com
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.
http://www.theedgeproperty.com/news-a-views/12967-mah-sing-plans-rm75b-township.html
