KUALA LUMPUR (July 3): Mah Sing Group Bhd (KL:MAHSING) is acquiring land in Taman Desa, Kuala Lumpur for RM108 million which will be developed into serviced apartments and affordable housing units.
The planned development is estimated to have a gross development value of RM1.01 billion.
Mah Sing plans to develop the land in two phases, the first being 1,600 serviced apartments spread over 3.7 acres dubbed as M Aspira and the second phase, Residensi Madani, under the affordable housing programme, will offer around 800 units on a 2.47-acre plot.
M Aspira, which will have three different layouts, is targeted to open for registration in 3Q2024 and is indicatively priced at RM448,800.
The acquisition marks Mah Sing’s third land deal in 2024, after it acquired the Sepang land for RM100.72 million and Pulai land for RM103.7 million.
“We aim to maintain this momentum and continue acquiring strategic lands in Kuala Lumpur, Klang Valley, Johor and Penang as suitable opportunities arise,” said its founder and group managing director Tan Sri Leong Hoy Kum in a statement.
As of March 31 2024, Mah Sing has a net gearing ratio of 0.06 times and RM966 million in cash and bank balances, the group is well-positioned to continue pursuing strategic land acquisitions, prioritising assets capable of delivering efficient returns.
Meanwhile, Leong believed there is strong pent up demand for this project as this is one of the last pieces of development land in this matured location in Kuala Lumpur. The target market includes working professionals, young investors, small families and the M40 (Middle 40%) income group.
“The surrounding neighbourhoods have mainly older residential projects and it is timely for us to offer well-designed homes with good concepts and facilities for the up-graders as well as first time home buyers from the surrounding established townships,” he said.
At 3.30pm, Mah Sing’s share price was traded two sen or 1.1% higher at RM1.81, bringing the group a market capitalisation of RM4.63 billion. The stock has more than doubled since the beginning of this year.