By BUSINESS TIMES
PROPERTY developer Mah Sing Group Bhd has sealed a deal to sell two commercial properties in Kuala Lumpur to Kuwait Finance House (KFH) and Autron Corp Ltd for RM560 million.
The two buildings are the second and third en bloc sales for Mah Sing in the last four months.
In July, it agreed to sell The Icon Jalan Tun Razak (West Wing) to Koperasi Permodalan Felda for RM174.4 million.
Mah Sing group managing director Datuk Sri Leong Hoy Kum said the group plans to launch Southgate Commercial Centre in Kuala Lumpur and Southbay City in Penang by mid-2008.
These two projects will have a total gross development value of RM1.17 billion.
“We may consider en bloc sales for the two projects should a good opportunity arise,” Leong said in a statement.
Under the latest deal, Kuwait-listed KFH and Singapore- and Australia-listed Autron have set up a special purpose vehicle, called Prompt Symphony Sdn Bhd. KFH will hold 80 per cent, while Autron will hold the rest.
Prompt Symphony will buy The Icon Jalan Tun Razak (East Wing) from Mah Sing’s wholly-owned unit, Star Residence Sdn Bhd, for RM255 million.
The East Wing consists of 17 levels of offices and 301 parking bays.
It will also buy The Icon Mont’ Kiara from Mah Sing’s unit, Maxim Heights Sdn Bhd, for RM305.3 million. This building has 27 levels of offices, a retail podium and 637 parking bays.
It will use the funds for working capital and to finance future developments.
Mah Sing said it has a remaining gross development value (GDV) of RM4.12 billion, with unbilled sales accounting for RM1.08 billion, which will ensure earnings visibility for seven years.
It also reported a 36.1 per cent surge in its third quarter net profit on the back of new projects.
The group made a net profit of RM22.73 million in the third quarter ended September 30 2007. Revenue jumped 42 per cent to RM166.9 billion.
In the nine months ended September 30, Mah Sing recorded a net profit of RM61.77 million, up 28.1 per cent from the same period last year, on the back of RM453 million turnover.
In the 12 months to December 2006, it posted a net profit of RM65.4 million and sales of RM495.6 million.