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Thursday, August 13, 2009

Mah Sing upbeat on Cyberjaya land

From left: Tan Sri Leong Hoy Kum, Mah Sing chairman Tan Sri Yaacob Mat Zain and Setia Haruman Sdn Bhd COO Lao Chok Keang after the signing

KUALA LUMPUR: Mah Sing Group Bhd’s purchase of 46.1ha freehold land in Cyberjaya for RM130.5mil cash will spearhead its expansion into the southern growth corridor.

According to Mah Sing group managing director cum group chief executive Tan Sri Leong Hoy Kum, the land will be developed into a medium to high-end gated and guarded residential – Garden Residence – comprising superlink homes, semi-detached homes and bungalows, with an estimated gross development value (GDV) of RM690mil.

The company told Bursa Malaysia it intended to fund the acquisition and the development cost of the land through internally generated funds and/or bank borrowings.

The company requested a whole day suspension for its share trading yesterday, pending this material announcement.

To be launched early next year, the Garden Residence will take three years to complete. It will also contribute to group earnings from the financial year ending Dec 31, 2010 (FY10).

At a press briefing yesterday, Leong said the Garden Residence would be developed in two phases. The first phase would be launched early next year, followed by the second phase, depending on the market response.

He said the mini-township project included a clubhouse and various facilities and amenities.

The first phase comprises 267 units superlink homes and 124 units semi-detached homes, amounting to about RM207mil to RM276mil or 30% to 40% of the total GDV of RM690mil.

The second phase comprises 284 units semi-detached homes and 70 bungalow units. “The project should start contributing to our earnings next year,” he said.

Leong said sentiment had improved and an upcycle in the property market was likely in the second half of 2010.

Mah Sing would consider purchasing additional commercial land in future as it intended to expand the township and plan for commercial components, should the need arise, he said.

Yesterday, Mah Sing through its subsidiary Myvilla Development Sdn Bhd, signed a sale and purchase agreement (SPA) yesterday with Cyberview Sdn Bhd (as a proprietor) and Setia Haruman Sdn Bhd (vendor) in Kuala Lumpur.

Leong said currently, residential properties in Cyberjaya comprised mainly medium range apartments and bungalow lots.

He believes there is a pent-up demand for gated and guarded landed properties with good concepts and themes that boost value.

Mah Sing’s expansion strategy is to acquire choice land bank in multiple prime locations in Klang Valley, Kuala Lumpur, Penang and Johor Baru for its Commercial, Legenda, Residence and Perdana series which targets different segments of the medium to high-end property market.

With the Garden Residence, Mah Sing now has 17 projects located in high growth regions and property hot spots, comprising 12 projects in the Klang Valley, the Central Region, four projects in Johor, (the southern region) and one project in Penang (northern region).

All developments have a remaining total GDV and unbilled sales of about RM4.4bil.

“We plan to continue the acquisition trail for large landbanks for potential mass housing projects in Malaysia, and explore overseas opportunities in China and Vietnam, which has high population growth,” Leong said.

Among its new launches in the Klang Valley for the third and fourth quarters this year are the StarParc Point commercial project, Kemuning Residence Shah Alam, Hijauan Residence, One Lagenda bungalows development and Aman Perdana residential.

For Penang and Johor, projects to be launched this year are Penang Island Residence@Southbay, Johor Baru Sri Pulai Perdana 2 and Johor Baru Sierra Perdana.

By The Star (by Rachael Kam)

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