KUALA LUMPUR (Dec 3): Mah Sing Group Bhd (KL:MAHSING) is acquiring 59.12 acres (23.93 hectares) of prime land in the Pulai district of Johor Bahru for RM62.98 million, on which it wants to develop super-linked homes with an estimated gross development value (GDV) of RM463 million.

Mah Sing said its wholly owned Loyal Sierra Development Sdn Bhd had inked sale and purchase agreements with Hau Enterprise Sdn Bhd and its shareholders — Chia Kim Heng, Chia Teck Heng, Low You Chone and Wong Moi Yong — to acquire the freehold land.

“Named M Tiara 3, the township will feature spacious super-linked homes, with indicative home prices starting from RM780,000. The commencement of M Tiara 3 is expected to follow as a continuation of M Tiara 2,” Mah Sing said in a filing on Tuesday.

The acquisition marks the group’s fifth land purchase this year and third acquisition in Pulai, after it bought land for M Tiara 2 (100.4 acres) in April 2024, and M Tiara (75.7 acres) in June 2023.

The proposed acquisition and development will be funded through a combination of internal funds and bank borrowings. As at end-September, the group’s cash and bank balances totalled RM747.43 million, while borrowings stood at RM1.60 billion.

The project's development cost and expected profits are yet to be ascertained at this juncture, Mah Sing said, as it will need to submit the proposed plan to the relevant authorities for approval. 

Mah Sing said the acquisition, expected to be completed in the first half of 2025, will further expand its footprint in the region, as the land is strategically positioned to benefit from strong demand for M Tiara.

Both M Tiara projects saw over 14,000 registrations of interest and a 100% take-up rate for international lots, noted Mah Sing.

“This outlook is further supported by market growth potential from transformative projects such as the Johor-Singapore Rapid Transit System (RTS) and the Johor-Singapore Special Economic Zone,” it said.“The proposed acquisition is expected to contribute positively to future earnings of the group, and enhance net assets of the group in the future, in view of the potential future profit contribution arising from the development of the land,” it added.

At Tuesday's noon break, shares in Mah Sing were traded one sen or 0.59% higher at RM1.71, valuing the group at RM4.51 billion.