Mah Sing to enter Penang market

By THE STAR

KUALA LUMPUR: Mah Sing Group Bhd, currently with 12 ongoing projects in the Klang Valley and Johor Baru, is eager to make its presence felt in the robust Penang property market.

“We will consider developing a Legenda residential series if we venture to land-scarce markets like Penang island,” president and group chief executive Datuk Leong Hoy Kum told StarBiz.

He said the company was capitalising on its financial strength and the positive market outlook for more upmarket residences to further expand its landbank.

This year, the company is looking to purchase two to three pieces of land in high growth markets in the Klang Valley, Johor Baru and Penang.

Datuk Leong Hoy Kum at Hijauan Residence

“Mah Sing plans to offer more high-end houses under the Legenda series to cater to the strong interest for such residences,” Leong said.

Of its ongoing developments, 68% are in the Klang Valley and the rest in Johor Baru.

Leong said Mah Sing’s 555-acre landbank now had an estimated gross development value (GDV) of RM2.2bil, which would sustain the company’s earnings for the next four to five years.

This consists of 210 acres in the Klang Valley with a GDV of RM1.49bil, and 345 acres in Johor Baru worth RM703mil.

Together with future progress billings of RM430mil as at March 31, the company’s potential GDV is worth RM2.6bil.

“Since 2003, Mah Sing’s new projects rollout has earned an annual GDV of between RM600mil and RM800mil a year,” Leong said.

The company’s Legenda, Residence and Perdana series have powered its growth in the last seven years.

Mah Sing’s latest project in Cheras, Hijauan Residence, is an eco-sanctuary close to the Hulu Langat Forest Reserve.

Leong said to take advantage of its proximity to the forest reserve, the 42-acre gated and guarded project was conceptualised as a natural eco-park.

The project, which will be launched today , comprises 408 2½-storey link semi-detached houses, garden villas and garden bungalows, priced from RM578,800 to RM898,000, for a GDV of RM250mil.

There are also 160 garden apartments priced from RM290,000 each.

Mah Sing ventured into the commercial property sector last October and plans to make its mark in Kuala Lumpur’s commercial sector.

Its two commercial developments, The Icon in Jalan Tun Razak and The Icon, Mont’ Kiara, have a combined GDV of RM540mil and will be ready in two to three years.

“We are looking at building more Grade A offices that have retail and shop lots to meet the strong demand for such properties now. The occupancy rates for such property has reached 85% to 90%,” Leong said.

He said the company might consider selling the buildings en bloc to institutional investors if the offer price was right.

“Our aim is to maintain a 70% earnings contribution from sales of residential properties, with commercial property making up the balance,” he added.

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