Mah Sing makes second land acquisition this year for RM21.7 million

KUALA LUMPUR: Mah Sing Bhd has made its second land acquisition this year – a 6.32-acre commercial tract next to its 115.25-acre Garden Residence (pictured) in Cyberjaya for RM21.7 million, or RM79 psf. This means Garden Residence’s land size will be increased to 122-acres while the project’s total gross development value (GDV) will reach almost RM1 billion.

The RM21.7 million for its second acquisition includes RM21.2 million for the land and RM495,000 for infrastructure.

In a statement released by the developer on Feb 22, it said the Sale and Purchase Agreement (SPA) was signed between its wholly owned subsidiary Myvilla Development Sdn Bhd, Cyberview Sdn Bhd (proprietor) and Setia Haruman Sdn Bhd (vendor).

“The acquisition of this additional parcel of land will allow us to plan commercial products including serviced suites from 250 sq ft onwards and retail units which will allow us to complement and enhance the overall appeal of the project,” Mah Sing’s group managing director cum CEO Tan Sri Leong Hoy Kum said. The land, located opposite Lim Kok Wing University as well as several other reputable institutions of higher learning, would mean a captive market of lecturers and students for the project.

The developer’s first acquisition of the year was on Feb 8 – a 19.18-acre tract for RM45.5 million in Hicom Industrial Estate for its iParc2@Shah Alam industrial development, with a GDV of RM143 million.

The group recorded a 1.2% growth y-o-y in profit after tax after minority interest (PATMI) to RM94.3 million for the FYE Dec 31, 2009, on the back of revenue of RM701.6 million. It’s revenue for 4Q2009 went up by 64% to RM249 million compared with RM152 million in 4Q2008, due to contributions from residential projects Aman Perdana, Kemuning Residence, Hijauan Residence and commercial projects The Icon Jalan Tun Razak and Southgate in Klang Valley, Southbay in Penang and Sierra Perdana, Sri Pulai Perdana 2 and Austin Perdana in Johor Baru.

Mah Sing is looking forward to a good year for the local property market, in tandem with the sustained economic growth. It stated that Malaysia continues to enjoy a conducive financing environment and increases in interest rates have historically proven to have low correlation to property sales, as the economic outlook and income growth have proven to be important.

“We believe this will contribute to higher demand for properties in the coming months, and this will bode well for innovative property developers with strong branding and healthy financial standing such as Mah Sing,” Leong said.

The group is confident about achieving its targeted sales of RM1 billion for 2010, 38% higher than the actual sales achieved in 2009 of RM727 million. It has more developments to launch this year comprising 10 new projects and in four existing projects. Among them are a commercial project on a 19.6-acre tract in Petaling Jaya comprising shopoffices, semi-detached offices, serviced apartments and retail units, One Legenda in Cheras, Garden Residence in Cyberjaya, Perdana Residence 2 in Selayang, Icon Residence@Mont’Kiara, Bayu Sekamat in Hulu Langat and Southbay City in Batu Maung in Penang.