Mah Sing eyes RM1.3 bil GDV Sentul land via acquisition of new unit

KUALA LUMPUR (May 26): Mah Sing Group Bhd has entered into an agreement with LTS Properties (M) Sdn Bhd, TS Law Corp Sdn Bhd and Law Wai Cheong for the purchase of a 78% equity stake in Cosmowealth Housing Development Sdn Bhd for RM54.96 million, which will be paid over a period of six years.

In a filing with Bursa Malaysia today, Mah Sing noted that Cosmowealth had on May 25 entered into an agreement to acquire three pieces of land in Sentul here measuring a combined 8.5 acres, for RM95.07 million. Cosmowealth is a special one-project company, which will undertake a potential residential development project in Sentul.

“Based on preliminary plans, the group will undertake a residential development named M-Centura on the land comprising serviced apartments, with an estimated gross development value (GDV) of approximately RM1.3 billion.

“The development, which is planned to be affordably priced, intends to offer well-thought layout and practical units, with indicative built-ups of 650 sq ft, 850 sq ft and 1,000 sq ft priced from RM326,000 per unit,” said Mah Sing.

It added that the acquisition will boost its landbank to 2,336 acres, with total remaining GDV and unbilled sales of RM32.2 billion.

“With this acquisition, 65% of our landbank is in the Klang Valley, and we target to increase that to 75% within the next two to three years, especially with projects in the affordable range," said Mah Sing group managing director Tan Sri Leong Hoy Kum in a separate statement.

“By stepping up land acquisitions in the Klang Valley with focus on affordable pricing, we will be better positioned to meet the market demand,” he added.

Mah Sing said it intends to fund the acquisition of the land and the proposed development through internal funds, bank borrowings, proceeds raised from its unrated senior perpetual securities programme or a combination of the three.

“Barring any unforeseen circumstances, the proposed shares acquisition is expected to be completed by the third quarter of 2017,” it noted.

In a separate filing with Bursa, Mah Sing said there is a competing claim to the rightful ownership of the five pieces of land totalling 3.56 acres that are fronting Titiwangsa Lake Gardens, which Mah Sing had proposed to acquire.

“We have received a letter dated May 26 from Messrs Abdullah Chan & Co, Advocates & Solicitors, that there is a competing claim to the rightful ownership of the proposed acquisition of the land announced on May 17, of which we and our legal counsel are in the course of verifying. A further announcement will be made in due course, where applicable,” said the group.

Mah Sing shares ended the morning session unchanged at RM1.52 today, with 613,300 shares done. Its market capitalisation stood at RM3.69 billion. — theedgemarkets.com

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