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KUALA LUMPUR: Mah Sing Group Bhd seems to have suffered another setback in its landbanking expansion plan. A petition has been presented to the High Court of Johor Baru to wind up Bistari Land Sdn Bhd, with which Mah Sing is in talks to acquire 1,352 acres (547ha) of agricultural land for RM411.2 million.
The petition was presented by Lembaga Lebuhraya Malaysia on Sept 30, 2013, according to a source.
In a filing with Bursa Malaysia yesterday, Mah Sing said it is seeking legal advice in respect of its position under the sale and purchase agreement (SPA) with Bistari Land.
When contacted, an official of Mah Sing said the company could not furnish more details as it is still in the midst of gathering more information.
On Oct 1, a day after it terminated its earlier deal in Senibong, Mah Sing announced that it was acquiring from Bistari Land the 31 pieces of adjoining freehold land in the area between Pasir Gudang and Tanjung Langsat, key components of Flagship D: Eastern Gate of Iskandar Malaysia.
Mah Sing said that it would develop them over eight to 10 years into a township with an estimated gross development value (GDV) of RM5 billion.
Work was supposed to begin in the second half of next year.
The original price tag was RM429.9 million, which has since been reduced to RM411.2 million, or RM7 per sq ft. The amount was to be paid over four years.
The land is located 80km from oil and gas hub Pengerang and 5km from the Pasir Gudang town centre with its established commercial facilities. The land is also adjacent to Taman Kota Masai and other existing townships.
The project in Pasir Gudang would increase the remaining GDV and unbilled sales from Mah Sing’s projects in Iskandar Malaysia to about 26% of the group’s RM28.4 billion in remaining GDV and unbilled sales.
Without it, booming Iskandar Malaysia would only make up about 10% of the group’s remaining GDV and unbilled sales.
The RM5 billion township is meant to be Mah Sing’s biggest township so far and its fifth in Johor since 2000.
Of Mah Sing’s seven projects in the south, including the Pasir Gudang township, five are township projects (79.5% of Iskandar Malaysia (IM) GDV), one is an industrial project (6.8% of IM GDV) where most purchasers buy for their own use, and one is an integrated project, namely Meridin@Medini, which is in a special economic zone (13.7% of IM GDV).
This article first appeared in The Edge Financial Daily, on November 13, 2013.
