Mah Sing units buy Gombak land for RM41m

PETALING JAYA: Two Mah Sing Group Bhd subsidiaries are buying two parcels of adjacent land in Bandar Kundang in Gombak, Selangor for a total RM40.94mil, or RM6 per sq ft.

In a statement to Bursa Malaysia, Mah Sing said its unit, Major Land Development Sdn Bhd, was buying 79 acres from Vibrant Domain Sdn Bhd for RM20.60mil, while another subsidiary, Elite Park Development Sdn Bhd, was acquiring 78 acres from Topaz Best Sdn Bhd for RM20.34mil. Both are cash transactions.

Mah Sing plans to develop the land into a self-contained, secured lifestyle township, named M Residence 2@Rawang, with a gross development value of around RM650mil. The development, comprising mainly linked semi-detached homes, is positioned to complement and leverage on the success of the group's 226-acre township development, called M Residence@Rawang, located just 1km from the new planned project.

“As the proposed development plan is subject to the authorities' approval, it is too preliminary at this stage to ascertain the total development cost and expected profit to be derived from the development,” the statement said. Mah Sing said it planned to fund the acquisition and the development cost of the land through internal funds and/or bank borrowings. The company said the acquisition was not expected to have a material impact on the net assets per share and earnings of the group for the financial year ending Dec 31, 2012, as the development was expected to commence in the second half of 2012.

The project would be developed over three to four years. The development of the land is expected to enhance the future earnings of the group.

By The Star