Mah Sing unit buys 2.83-acre land in George Town from Penang Dev Corp for RM51.8 mil

• Mah Sing said it believes the land price is reasonable given its prime location, potential gross development value, and contribution to expanding the group’s presence in Penang.

KUALA LUMPUR (Nov 10): Mah Sing Group Bhd’s (KL:MAHSING) unit Enchanting View Development Sdn Bhd is buying 2.83 acres of land in George Town from state development arm Penang Development Corporation for RM51.8 million.

The land, 450m from the upcoming Mutiara LRT Line Bandar Sri Pinang station, will be developed into a RM528 million mixed project with condominiums and commercial suites, the group said in a filing with Bursa Malaysia. The development targets young professionals, first-time buyers, upgraders, and investors.

Mah Sing said it believes the land price is reasonable given its prime location, potential gross development value, and contribution to expanding the group’s presence in Penang.

No formal valuation was done since the group is familiar with the market value of nearby properties, it said in the filing. This deal is Mah Sing’s fourth in Penang.

Mah Sing entered the Penang property market in 2009 with the Southbay township in Bayan Lepas, which included fully sold projects like Residence@Southbay, Legenda@Southbay, Southbay Plaza, The Loft, and M Vista. The company later expanded to Batu Ferringhi with Ferringhi Residence (2014) and Ferringhi Residence 2 (2016). These northern projects are set to benefit from the North Coastal Paired Road (NCPR) and the upcoming Mutiara LRT Line.

Funding will come from a mix of internal funds and bank loans, with the exact mix decided later based on the group’s finances.

The site fronts the Tun Dr Lim Chong Eu Expressway and is surrounded by established residential and commercial areas.

The property development’s share price closed 0.97% or one sen higher at RM1.04 at the noon break on Monday, valuing the group at RM2.66 billion. The stock is down 42.22% this year.

As Penang girds itself towards the last lap of its Penang2030 vision, check out how the residential segment is keeping pace in EdgeProp’s special report: PENANG Investing Towards 2030.