Mah Sing to sell Southville City land for RM617.9m, expands digital push

PETALING JAYA (Aug 20): Mah Sing Group Bhd has agreed to sell approximately 78.8 acres of commercial land within Mah Sing DC Hub @ Southville City in Selangor to WG Malaysia X Sdn Bhd for RM617.9 million, as the property developer expands into digital infrastructure.

In a statement on Thursday (Aug 20), Mah Sing said the consideration works out to about RM180 psf. It described WG Malaysia X as a wholly owned subsidiary of an international digital-infrastructure group.

The group said the transaction would allow it to monetise development-ready land and recycle capital into other opportunities.

Mah Sing is also assessing a proposed colocation data centre at the hub, potentially with an experienced colocation operator. The group said the proposal remains at a preliminary stage and is subject to further assessment.

Under its digital-infrastructure strategy, Mah Sing said it intends to selectively monetise development-ready land, develop enabling infrastructure and core-and-shell facilities, and pursue ownership of income-generating digital-infrastructure assets alongside experienced operators.

Founder and group managing director Tan Sri Leong Hoy Kum (pictured) said digital infrastructure could complement the group's property-development business and become a second growth engine over time.

Mah Sing said parties associated with the buyer had indicated interest in bringing NeoCloud and advanced Nvidia GPU computing capabilities together with data-centre development and operating capabilities to support high-performance artificial intelligence (AI) workloads at Southville City.

Mah Sing DC Hub @ Southville City is within the group's 428-acre freehold Southville City township. Mah Sing said the site has access to power and water infrastructure, high-speed fibre connectivity and transport links to support large-scale digital infrastructure.

The group has also identified Meridin East in Johor Bahru and MS Industrial Park @ Kulai within the Johor-Singapore Special Economic Zone (JS-SEZ) as potential sites for future hyperscale, AI and colocation developments.

MS Industrial Park @ Kulai has an estimated gross development value of RM2.26 billion and is being developed to target sectors including electrical and electronics, food and beverage, maintenance, repair and overhaul, semiconductors, pharmaceuticals and AI-related industries.

Mah Sing said the Kulai industrial park could eventually incorporate recurring-income assets supporting data-centre operations, logistics and warehousing, as well as related digital infrastructure and services.

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