Wednesday 17 Apr 2024
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KUALA LUMPUR (March 21): Property developer Mah Sing Group announced that the conditions precedent of the sale and purchase agreements (SPAs) for its proposed acquisition of a freehold land in Hulu Langat, Selangor have been fulfilled.

The acquisition, which involves a total purchase consideration of RM392.04 million, was proposed by three of Mah Sing’s wholly-owned subsidiaries — Mestika Bistari Sdn Bhd, Grand Prestige Development Sdn Bhd and Elite Park Development Sdn Bhd. 

The group had entered into inter-conditional SPAs with Petaling Garden Bhd, a subsidiary of S P Setia Bhd on June 19 last year for the proposed land acquisition, Mah Sing’s bourse filing showed. 

The land, measuring 500 acres in total, includes a part of Lot 41 and Lot 1807 in its entirety. The freehold land is undulating and planted with old palm trees and other trees, Mah Sing said.

The estimated gross development value (GDV) of the proposed development land is approximately RM3.3 billion.

Mah Sing added that the proposed acquisition is expected to be its largest township development in the Klang Valley, with the development of double-storey landed properties, well-planned amenities and commercial lots to be named Glengowrie Estate. 

"Glengowrie Estate is aimed at attracting potential buyers who are currently residing in Kajang, Seri Kembangan, Bangi, and Seremban, looking for more affordable alternatives away from the congested Kuala Lumpur city, as well as those looking for countryside living with ready amenities and infrastructure," Mah Sing added. 

The proposed development is expected to commence by the third quarter of 2024 and to be developed over a span of eight to 10 years. 

It will be funded by internally generated funds and bank borrowings, said the company, with the exact funding mix to be decided at a later stage after considering its net gearing level, interest costs and internal cash requirements for its business operations.

Previously, Mah Sing has completed five land acquisitions for the past three years that included two parcels of land in Kuala Lumpur, as well as land in Selangor and Johor. The total purchase considerations for these acquisitions amounted to RM397.4 million, with gross development values ranging from RM469 million to RM790 million each.

In addition to these acquisitions, Mah Sing has also purchased a four-acre plot in Mukim Setapak, Kuala Lumpur for RM74.3 million. This land is slated for the development of a transit-oriented development, (TOD) named M Azura, which has a projected GDV of RM508 million.

Furthermore, in January 2024, Mah Sing proposed another land acquisition — a 185 acre-land in Sepang for RM100.72 million. This land is intended for the development of Mah Sing Business Park, which could potentially span 561.65 acres and has a projected GDV of up to RM2 billion.

Mah Sing’s shares closed two sen or 1.85% higher at RM1.10 on Thursday, valuing the company at RM2.67 billion. 

Edited ByEsther Lee
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