MAH SING Group Bhd plans to build properties worth some RM1.28 billion in Penang over the next seven years, as it bets on rising demand for real estate in northern Peninsular Malaysia.
The contiguous three-parcel land package was bought for RM115.8 million, or RM30.61 a square foot from Kembang Biru Sdn Bhd. Both parties signed the deal on June 13.
“This will enable us to geographically diversify our landbank in Peninsular Malaysia, and to ride on the exciting economic growth in the northern corridor,” Mah Sing group managing director Datuk Leong Hoy Kum said in a statement.
Kuala Lumpur-based Mah Sing, which has existing projects in the Klang Valley, and Johor, will finance the Penang land purchase with the company’s internal funds and bank loans.
Its initial undertaking in Penang includes luxury, and medium-upper homes. Including Southbay Penang, Mah Sing will have 13 projects in Malaysia with a gross development value of RM3.47 billion.
Its other projects include the Damansara Legenda in Petaling Jaya, Selangor, and Austin Perdana in Tebrau, Johor.
Bursa Malaysia main board’s Mah Sing, which also makes plastic products, has long harboured plans to take its property business to Penang.
Leong had told Business Times in January 2006 the developer planned to capitalise on the demand for landed homes at the island state, adding that it would target buyers wishing to upgrade their units.