KUALA LUMPUR (Jan 18): Mah Sing Group Bhd is buying two parcels of land measuring 8.2 acres in Puchong for RM85.86 million from Millennium Acres Sdn Bhd, an entity 50%-owned by Tanco Holdings Bhd’s managing director Datuk Seri Andrew Tan Jun Suan.
The remaining stake in Millennium Acres is held equally by Benjamin Tan Bock Suan, Christopher Tan Khoon Suan, Derrick Tan Teik Suan, Edwin Tan Kium Suan and Datuk Tan Lee Sing.
Mah Sing said the land parcels located in Puchong Perdana have a potential gross development value of about RM726 million. The group intends to develop one of the parcels into a residential project and the other into a mixed-used development.
Mah Sing’s wholly-owned subsidiary Supreme Springs Sdn Bhd will be buying the first parcel of 3.8 acres for RM40.19 million while another wholly-owned unit Legend Grand Development Sdn Bhd will be acquiring the second piece of 4.4 acres for RM45.67 million.
The property developer said it will fund the costs and expenses for the land acquisition and future development via a combination of internally-generated funds, bank borrowings and proceeds raised from disposal of undeveloped land.
The acquisition is expected to be completed in the second half of this year.
Shares of Mah Sing closed half sen or 0.9% higher at 58 sen on Wednesday (Jan 18), giving the group a market capitalisation of RM1.41 billion.
Tanco, meanwhile, closed half sen or 1.4% lower at 36 sen, valuing the company at RM641.6 million.