Update Mah Sing buying 34ha Shah Alam land for RM327m

by **Cals** Thu 13 Mar 2014, 17:07

Update Mah Sing buying 34ha Shah Alam land for RM327m

Business & Markets 2014

Written by Chong Jin Hun of theedgemalaysia.com

Thursday, 13 March 2014 10:29

KUALA LUMPUR (Mar 13): Mah Sing Group Bhd is buying an estimated 34ha (85.43 acre) land in in Shah Alam for RM327.5 million cash. The seller is Great Doctrine (M) Sdn Bhd.

In a statement to the exchange today, Mah Sing said the leasehold land within the Sultan Salahuddin Abdul Aziz Shah Golf Course in Section 13 had been earmarked for an approximately RM2.5 billion proposed residential project. The project would comprise landed and high-rise homes.

"Based on preliminary plans, the proposed development shall comprise an exclusive enclave of gated guarded landed and high-rise residences, including super link, linked semi-detached, semi-detached, bungalows and serviced apartments.

"The proposed development is estimated to have a potential gross development value (GDV) of approximately RM2.5 billion," Mah Sing said.

According to Mah Sing, its wholly-owned subsidiary Enchanting View Development Sdn Bhd has signed a sale and purchase agreement with Great Doctrine for the land acquisition.

The company said the site had a 99-year lease ending on May 29, 2102.

"The proposed acquisition allows the group to further strengthen its presence in Klang Valley, one of its four key areas of focus.

"It also allows the group to further penetrate the growth potential of Shah Alam, following the success of its earlier sold out projects in Shah Alam ie Kemuning Residence niche residential development, the iParc 1, iParc 2 and iParc 3 industrial projects, as well as Star Avenue, the commercial development," Mah Sing said.

Mah Sing plans to finance the acquisition and development cost of the land via the company's rights issue proceeds and internally-generated funds, besides bank loans.

The buyer said the land acquistion was due for completion in 2016.