By THE EDGE
Mah Sing Group is making its maiden foray into the north of the country with the mixed development of Southbay Penang comprising commercial and residential components.
It has entered into several sales and purchase agreements via its subsidiaries, Vienna View Development Sdn Bhd, Enrich Property development Sdn Bhd and Vienna Home Sdn Bhd with Kembang Biru Sdn Bhd.
The deals will see them acquiring parcels of contiguous freehold land totalling 34.7 hectares in Batu Maung, Penang for RM115.75 million or RM30.61 per square foot.
The development of Southbay Penang, will generate an estimated RM1.28 billion in gross development value (GDV).
“We are very confident that Southbay Penang will do very well as existing infrastructure gives the project very good accessibility,” said Mah Sing’s group managing director Datuk Leong Hoy Kum.
He said it is just 10 minutes from the existing Penang Bridge via the highway, and only five minutes from the proposed second Penang Bridge.
“With a RM6.6 billion allocation for infrastructure development, Penang will be one of the beneficiaries under the Ninth Malaysia Plan. This will certainly have a spillover effect on the economy,” he said.
Southbay Penang is expected to be completed between five and seven years, and Mah Sing plans to offer up-market Legenda@Southbay Penang and Residence@Southbay Penang which will be the epitome of exclusive resort living.
To cater to the strong tourist traffic in Penang, the group plans to cooperate with institutional investors to develop hotels which optimise its location.
“We believe that with our one-stop-centre under the Malaysia My Second Home (MM2H) programme, we will be able to attract more MM2H participants as Penang has become a No 1 choice state for participants of the programme,” Leong said.
Mah Sing at the moment has a significant presence in the Klang Valley and the Iskandar Development Region, Johor.
“We have an aggressive yet prudent land banking strategy in earnings growth and visibility, and it is timely to expand our landbank strategy for earnings growth and visibility, and it is timely to expand our landbank to another growth area, Penang,” Leong said.
With Southbay Penang, Mah Sing now has 13 developments with a total GDV of RM3.47 billion.