KUALA LUMPUR (Dec 19): Mah Sing Group Bhd (KL:MAHSING) and Kuala Lumpur Kepong Bhd’s (KL:KLK) subsidiary have entered into a joint venture to acquire and develop 419.15 acres of freehold industrial land in Kulai, Johor, within the Johor-Singapore Special Economic Zone (JS-SEZ).

In a bourse filing, Mah Sing said its wholly owned subsidiary, Nova Legend Development Sdn Bhd, will hold a 60% equity interest in the joint venture company named M Industrial Development Sdn Bhd, while KLK Land Sdn Bhd will hold the remaining 40%.

According to a joint statement by the companies, the land project was acquired for approximately RM274 million and has an estimated gross development value (GDV) of RM2.26 billion. 

Mah Sing said it will oversee the planning, development and execution of the industrial development through a project management agreement between M Industrial Development and Southville City Sdn Bhd, another wholly owned subsidiary of the group.

The project, dubbed as MS Industrial Park @ Kulai, is located near key infrastructure including Senai International Airport, the North-South Expressway and Johor’s major ports, said the companies. The industrial park will comprise a mix of cluster, semi-detached and detached factories, as well as vacant industrial land for logistics hubs, warehouses and related facilities.

For the purchase of the 419.15-acre land, M Industrial Development signed a conditional sale and purchase agreement with Aura Muhibbah Sdn Bhd, which is a fully owned unit of KLK.

The project marks an expansion of its industrial property portfolio and aligns with national industrial development priorities, including the New Industrial Master Plan 2030, said Mah Sing.

“Our focus is on building a well-integrated industrial platform that brings together anchor industrial players, their suppliers and wider value chain partners,” said Mah Sing founder and group managing director Tan Sri Datuk Seri Leong Hoy Kum.

Mah Sing said it has an established presence in Johor through several residential townships and industrial parks, and has acquired additional land in the state in recent years for residential developments.

For KLK Land, the collaboration represents a step in unlocking the value of its industrial land bank in Kulai. The 419.15-acre site forms part of KLK Land’s approximately 2,500 acres in Kulai earmarked for phased development under a broader master-planned township concept, which is expected to include industrial, commercial and residential components over time.

“We view Kulai and the wider Johor-Singapore Special Economic Zone as an important growth corridor that supports Johor’s evolving industrial landscape and contributes to sustainable economic growth,” said KLK executive chairman Tan Sri Lee Oi Hian.

The companies noted that the development is expected to contribute to economic activity in Johor, including employment opportunities and business growth linked to industrial and logistics-related sectors.

The proposed acquisition is subject to conditions precedent, including regulatory approvals and, if required, shareholders’ approval. Completion is expected within three months from the date the agreement becomes unconditional, with an automatic one-month extension.

At Friday's closing bell, shares of Mah Sing were unchanged at 95 sen, with a market value of RM2.43 billion. Meanwhile, KLK's counter was up 30 sen or 1.52% to RM20 and has a market capitalisation of RM22.3 billion.