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KUALA LUMPUR: Mah Sing Group Bhd yesterday announced that the sale and purchase agreement (SPA) has gone unconditional for its purchase of 1,352 acres (547ha) freehold land near Pasir Gudang, Johor intended for a township project called Bandar Meridin East.
The purchase of the large tract of land by Mah Sing from the vendor, Bistari Land Sdn Bhd, had gone through some hiccups since the deal was first announced in October last year.
However, in a statement yesterday, Mah Sing said the SPA has become unconditional following the Estate Land Board’s approval of the vendor’s application for the disposal of the land, as well as the completion of due diligence on the land.
Mah Sing’s shareholders approved the acquisition of the land on March 14, and the transaction was carried out for a total of RM401.16 million or RM6.81 per square foot — to be paid over a period of 24 months.
Bandar Meridin East, which is located between Pasir Gudang and Tanjung Langsat, has an estimated gross development value of RM5 billion.
Neighbouring Bandar Meridin East are two mega projects namely, the redevelopment of Desaru by Khazanah Nasional Bhd and the Pengerang Integrated Petroleum Complex led by national oil giant Petroliam Nasional Bhd.
“Such projects are expected to further increase the demand for residential properties in the surrounding area,” said Mah Sing in its statement.
Mah Sing also said the the proposed infrastructure upgrades including road widening of Jalan Kong Kong, Johor-Singapore connections such as the Rapid Transit System and the third bridge from Desaru to Changi will benefit the project.
“Such upgrades will prompt further growth of the area, especially those related to ecotourism and agriculture where it will benefit Bandar Meridin East,” said the group.
The indicative prices for houses in Meridin East are: double-storey link homes from RM300,000, linked semi-detached homes from RM400,000 and semi-detached homes from RM500,000. A preview of the project is targeted for the second half of 2014.
This article first appeared in The Edge Financial Daily, on June 6, 2014.
