KUALA LUMPUR (April 5): Mah Sing Group Bhd has sealed its second land purchase within four months.

The property developer announced that its wholly-owned unit Venice View Development Sdn Bhd has entered into a conditional sale and purchase agreement with Amanah Raya Bhd to acquire a parcel of land in Pulai, Johor Bahru for RM103.75 million cash.

The tract is for a residential development project, named M Tiara 2, with a gross development value (GDV) of RM1.45 billion, according to the company’s bourse filing.

Notably, the newly acquired land is located in close proximity (approximately 400 metres away) to its existing M Tiara site.

In June last year, Mah Sing bought a 75.7-acre parcel of land for the M Tiara project.

The latest deal marks Mah Sing's second land purchase in just four months this year. In January 2024, Mah Sing proposed to buy a 185-acre land in Sepang for RM100.72 million, for the development of the Mah Sing Business Park, which could potentially span 561.65 acres with a projected GDV of up to RM2 billion.

Mah Sing plans to finance the costs and expenses of the latest acquisition and development through a mix of internally generated funds or bank borrowings, with the proposed acquisition scheduled for completion in the second half of 2024.

The group said this proposed acquisition is a strategic response to the growing demand in Johor's property market, driven by upcoming infrastructure projects like the Johor Bahru-Singapore Rapid Transit System (RTS) and the potential revival of the KL-Singapore high-speed rail project. Additionally, plans for the Johor-Singapore special economic zone (JS-SEZ) are expected to enhance economic activities between the two regions.

Mah Sing anticipates properties in Johor becoming more affordable and attractive to Singaporean homebuyers, potentially attracting more residents to the area.

Over the past three years, Mah Sing has completed five land acquisitions, including two parcels of land in Kuala Lumpur, as well as land in Selangor and Johor. The total purchase sum for these acquisitions amounted to RM397.4 million, with GDVs ranging from RM469 million to RM790 million each.

Additionally, Mah Sing is purchasing a four-acre plot in Mukim Setapak, Kuala Lumpur for RM74.3 million. This land is designated for the development of a transit-oriented development named M Azura, with a projected GDV of RM508 million.

The group also entered into inter-conditional SPAs with Petaling Garden Bhd, a subsidiary of S P Setia Bhd, on June 19 last year for the acquisition of freehold land in Hulu Langat, Selangor, intending to develop double-storey landed properties, well-planned amenities, and commercial lots under the name Glengowrie Estate, with an estimated GDV of approximately RM3.3 billion.

As of the end of December last year, Mah Sing's balance sheet remained healthy, with cash and cash equivalents of RM780.94 million. Its net gearing ratio stood at a low level of 0.08 times.

Shares in Mah Sing closed one sen or 0.8% higher at RM1.26, giving the group a market capitalisation of RM3.14 billion. Year to date, the stock has rallied by 51.81%.