KUALA LUMPUR (Sept 19): Mah Sing Group Bhd said it is still shopping around to acquire land worth at least RM1 billion in gross development value (GDV) by the end of this year.
"So far we this year we have acquired land worth RM3.62 billion in GDV but we have set a target of at least RM5 billion by the end of the year. So we're still looking out for more land," said Mah Sing group managing director cum group chief executive Tan Sri Datuk Sri Leong Hoy Kum.
"Our business model is such that we have a quick turnaround so we must keep replenishing our landbank," Leong added.
The group currently has a landbank size of around 1,200 acres with GDV and unbilled sales of RM18.04 billion.
"This is enough to last us another seven to eight years without any land replenishments,"Leong told the media after Mah Sing's extraordinary general meeting (EGM) on Wednesday.
Leong said the group will also be looking to tap into the current market demand for more affordable housing.
"We are quite selective when it comes to certain property sectors, right now there is a demand for mass affordable housing," Leong said.
Shareholders unanimously approved the Bangi land acquisition today which the group intends to develop into Southville City, a mix township of residential and commercial properties.
"This will be the biggest township project ever for the Mah Sing group," said Leong.
The group announced earlier this year that it was acquiring the 412 acres of land from Boon Siew Development Sdn Bhd for RM333.04 million.
The freehold land has an estimated gross development value (GDV) of RM2.15 billion.
"We plan to meet market demand by exploring the feasibility of offering affordable SoHo and lifestyle suites from RM208,000,"Leong said.
Phase one of the development -- which will be launched in the first quarter of 2013-- will comprise of affordable lifestyle suites starting from RM208,000 and double storey link homes starting from RM530,000 onwards.
"This will be on top of our landed units and low rise commercial units, which will create diversity in the groups offering with emphasis on affordability."
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