KUALA LUMPUR (Aug 20): Mah Sing Group Bhd (KL:MAHSING) has agreed to dispose of a piece of land in Sepang, Selangor, for RM617.86 million cash, to data centre developer company WG Malaysia X Sdn Bhd.

In a bourse filing, Mah Sing said its unit Southville City Sdn Bhd has signed a sale and purchase agreement with WG Malaysia, a wholly owned subsidiary of an international digital infrastructure group, for the disposal on Thursday.

The purchaser intends to use the 78.8-acre land, currently vacant, for data centre-related development.  

The proceeds from the proposed disposal are intended to be utilised for the remaining infrastructure works and expenses relating to the transaction, working capital and future development and investment activities of the group, including opportunities under Mah Sing’s digital infrastructure strategy.

Land banking was the chosen strategy to leverage on experienced international players. By combining this with its property development efforts, the group aims to broaden its revenue streams for sustainable long-term value.

“We want to create new capabilities, new assets and new sources of long-term value for our shareholders, while contributing to Malaysia’s ambition to become a leading regional hub for AI and digital infrastructure,” said Mah Sing founder and group managing director Tan Sri Leong Hoy Kum in a statement.

Mah Sing is also planning to develop a colocation data centre within Mah Sing DC Hub in Southville City through a partnership with an unnamed colocation operator.

The colocation project is still in the preliminary stage, and no further details were shared.