KUALA LUMPUR (June 19): Mah Sing Group Bhd announced that it has signed a sale and purchase agreement with Petaling Garden Sdn Bhd, a subsidiary of S P Setia Bhd, on Monday (June 19) to acquire a 500-acre freehold land in Semenyih for RM392.04 million.

The land has an estimated gross development value (GDV) of RM3.3 billion and will be planned as an integrated township to be named Glengowrie Estate, Mah Sing's largest township in the Klang Valley.

This is Mah Sing's most significant land acquisition in recent years, said Mah Sing founder and group managing director Tan Sri Leong Hoy Kum in a statement, and the scale of the project will allow for "very good master planning".

"The acquisition will increase our township lands which will cater for demand for landed residential properties in the suburbs... Glengowrie Estate will build on the success of our affordable landed and township developments such as M Senyum in Salak Tinggi; M Aruna, M Panora and M Residence 1 and 2 in Rawang; Southville City in Bangi; and Meridin East in Johor.

"Glengowrie Estate is envisioned as an integrated and sustainable township in Semenyih where residents' lifestyles are self-contained and do not require them to travel far to fulfil their daily needs. With its strategic location in Semenyih and approximately 30 minutes from Kuala Lumpur, we believe this development will appeal to first-time home buyers who prefer to live in a self-contained township development away from the city. The development is also suitable for young families who live with their children and parents," Leong said.

In a separate statement, S P Setia said the disposal of the 500-acre land is part of its strategic plan to improve capital efficiency by monetising identified land banks and to align with its long-term plan of a lighter asset structure.

"The sale of this land is a good move for us. The sale proceeds will be used for investment into strategic projects developments as well as debt repayment. We are confident that this sale will contribute positively to S P Setia's profits and is a step towards achieving the company's long-term goals. S P Setia remains committed to delivering high-quality projects and creating value for its stakeholders,” said S P Setia Bhd president and chief executive officer Datuk Choong Kai Wai.

The land deal will increase Mah Sing's landbank to 2,418 acres, with a total remaining GDV and unbilled sales of RM26.86 billion.

"This is Mah Sing's third land acquisition this year, following the acquisition of M Tiara, a 75.7-acre freehold land in Mukim Pulai, Johor Bahru, with an estimated GDV of approximately RM480 million on June 13. In January, the group also acquired an eight-acre plot of land in Puchong to develop M Hana and M Terra, a transit environment district (TED) development with a total estimated GDV of approximately RM726 million," Leong said.

The development charge, improvement service fund and part of the integrated water supply scheme costs have been paid by the vendor, and part of the external infrastructure has also been completed. "An undulating land form allows Mah Sing the opportunity to explore unique designs and creative opportunities while maximising land use," Mah Sing's statement read.

According to preliminary plans, Glengowrie Estate will be developed with two-storey landed homes, amenities and commercial lots. The residential homes will be priced starting from RM446,800 indicatively.

The proposed development is expected to commence by 3Q2024 and to be developed over eight to 10 years. Registration of interest for the project, which is aimed at potential buyers living in Semenyih, Kajang, Seri Kembangan, Bangi and Seremban, is expected to start in 2024.