Mah Sing to launch two new projects in 2H2010

KUALA LUMPUR: Mah Sing Group Bhd plans to launch two new projects – Icon Residence Mont’Kiara and M Suites @ Jalan Ampang - in the second half this year, its managing director and chief executive officer Tan Sri Leong Hoy Kum said on Friday, June 25.

Speaking at a press conference, he added that these two will be the group’s maiden launches of high-rise residential products in the Klang Valley. The gross development value (GDV) of Icon Residence Mont’Kiara is worth RM298 million, while M Suites @ Jalan Ampang is worth RM257 million.

“Icon Residence Mont’Kiara will offer 260 semi-furnished units from 900 sq ft, with an average price of RM903,000. It will be previewed by the middle of next month. Meanwhile, M Suites @ Jalan Ampang will offer semi-furnished serviced residences from 430 sq ft, tagged from RM398,800,” he said.

The group currently have developments worth RM5.2 billion in Klang Valley, Penang Island and Johor Bahru. It is also looking to buy tracts of over 200 acres for landed residential township developments in Klang Valley.

It is also exploring opportunity to be part of the redevelopment of the 3,000-acre land in Sungai Buloh as well as the Royal Malaysian Air Force site, located just near to its headquarter in Sungai Besi.

Mah Sing Group is targeting at RM1 billion sales for its financial year ending December 31, 2010 (FY10), and it has achieved RM600 million sales from its projects in its first quarter (1QFY10) alone. Its currently has unbilled sales of RM1.1 billion.

Leong said the developer is targeting 30% sales and revenue contribution from its overseas projects in a five-year timeframe, and it is in the midst of evaluating proposals in Indonesia, Vietnam, Singapore and Australia. Currently, the group's current sales and revenue contribution comes solely from its local projects.

"We are looking at opportunities abroad like China, Vietnam, Singapore, Indonesia and Australia. For our project in China, we are obtaining the land-use rights. We should be able to lock in the revenue contribution from 2011 onwards as we expect to start the project by early next year," he noted.

Its project in China is the group’s first overseas project.

Mah Sing Group and Danlong Realty (Beijing) Ltd had on December last year entered into a letter of intent with Wujin District People's Government, Changzhou City, to develop a mixed development project on a 87.31-acre land, dubbed Plot 1, on the west of Wuyi Road which is in the central area of Wujin District.

The group and Danlong plan to establish a 51:49 joint-venture (JV) company to develop the said land into medium- to high-end residential and commercial properties with an estimated total investment cost of US$620 million (RM2 billion).

The Wujin Government has also given the JV company the opportunity to explore additional lands, namely Plot 2 of 53.13 acres in the north of Wujin High-New Zone of Changzhou City at the south intersection of Wunan Road and Wuyi Road; as well as Plot 3 of 82.37 acres at the north intersection of Wunan Road and Wuyi Road.