Mah Sing still seeking more land

KUALA LUMPUR (Sept 20): With only three more months to go this year, Mah Sing Group Bhd said it is still shopping around to acquire land for projects worth at least RM1 billion in gross development value (GDV).

“So far this year, we have acquired land worth RM3.62 billion in GDV. But since we have set a target of at least RM5 billion by the end of the year, we’re still looking out for more land,” said Mah Sing’s group managing director cum group chief executive Tan Sri Leong Hoy Kum.

“Our business model is such that we have a quick turnaround, so we must keep replenishing our landbank,” he added.

The group currently has a landbank of around 1,200 acres with a potential GDV of RM18.04 billion.

“This is enough to last us for another seven to eight years without any land replenishment,” Leong said after Mah Sing’s EGM yesterday.

He said the group will also be looking to tap 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,” he said.

Shareholders unanimously approved the group’s acquisition of some 412 acres in Bangi which the group intends to develop into Southville City, a mixed 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 from Boon Siew Development Sdn Bhd for RM333.04 million.

The freehold land has an estimated 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 affordable lifestyle suites starting from RM208,000 and double-storey link homes starting from RM530,000.

“This will be on top of our landed units and low-rise commercial units, which will create diversity in offering with emphasis on affordability,” said Leong.

This article is appeared in The Edge Financial Daily on Sept 20, 2012.