Mah Sing acquires Titiwangsa land for residential development
KUALA LUMPUR (May 17): Mah Sing Group Bhd has acquired a 3.56-acre freehold land in Titiwangsa, Kuala Lumpur. It plans to develop a transit-oriented residential project with an estimated gross development value (GDV) of up to RM650 million on the site.
The company said in a statement today that its wholly-owned subsidiary Mah Sing Properties Sdn Bhd has acquired the freehold plot along Jalan Beserah, off Jalan Tun Razak for a purchase consideration of RM60 million. It fronts Titiwangsa Lake Gardens and is located 3.7km away from Kuala Lumpur city centre.
Mah Sing noted that the land is almost a square shape and on flat terrain, ready for immediate development.
Mah Sing Group managing director Tan Sri Leong Hoy Kum said the land will be used to develop affordable transit-oriented development in the form of a lake-side condominium that offers units with indicative built-up sizes from 850 sq ft and indicative prices from RM485,000.
“We expect an estimated GDV of up to RM650 million for the development, with purchase consideration of up to RM60 million, assuming density of 350 per acre or more is obtained for the development order,” he said in the statement.
The total purchase consideration will be adjusted accordingly in the event that the density procured is lower than 350 units per acre. Further announcements will be made accordingly, the developer added.
Mah Sing has paid a deposit of RM6 million at the signing of the sale and purchase agreement.
Leong said the acquisition is in line with the company’s focus to acquire prime land in strategic locations, especially in the Klang Valley.
With this acquisition, Mah Sing’s landbank will increase to 2,328 acres, with total remaining GDV and unbilled sales of RM30.9 billion.
“We target to increase our landbanks in Klang Valley to 75% of our overall remaining GDV within the next two to three years, from the current 62%,” Leong said.
Leong stressed that the demand in the Klang Valley has remained resilient due to population and economic growth. “By stepping up land acquisitions in the Klang Valley with focus on affordable pricing, we will be in a better position to meet market demand,” he said.
The development on the land will benefit from amenities and infrastructure including major roads and highways, public train stations, medical centres, universities, public schools, retails shops, shopping malls, hypermarts and other recreational facilities.
The site is located 250m away from the upcoming Hospital KL MRT station, close to Istana Budaya, and 1.8km away from the Titiwangsa LRT, monorail and MRT interchange. The land is directly accessible via Jalan Tembeling, off Jalan Kuantan; other major thoroughfares and expressways in the vicinity include Jalan Tun Razak, DUKE Highway and Middle Ring Road 2 Highway.
“Given the strategic location, superior connectivity and accessibility, and strong demand for affordable homes by the middle-income group, the land has the potential for a quick turnaround development model, of which the group has had success with in the past. This will augur well for the group’s future growth and earnings prospects,” said Leong.