Mah Sing to develop RM656 million affordable housing project in Sepang

Mah Sing Group Berhad is developing affordable homes in Bandar Baru Salak Tinggi, Sepang, with an estimated gross development value (GDV) of about RM656 million.

The landed residential project, called M Senyum, will comprise mainly double-story terraced houses with land sizes of 18ft by 65ft and 20ft by 70ft, and they are indicatively priced from RM399,000.

Mah Sing said in a filing with Bursa Malaysia that its wholly-owned subsidiary, Oasis Garden Development Sdn Bhd has acquired around 40.5 hectares of prime land in Bandar Baru Salak Tinggi for RM95.83 million to carry out the M Senyum project.

The Land is alienated by the state via Sepang district/Land Office, it said.

This is the first land deal for the developer this year, Mah Sing said in a separate statement.

M Senyum will take over five years to be fully developed, subject to market conditions and the relevant authorities’ approval, it said.

The registration of interest and the project launch is targeted to start in the second half of this year.

“This augurs well for the group’s quick turnaround strategy, which will allow Mah Sing to meet current market demand from genuine first home buyers and upgraders from matured townships nearby,” Mah Sing said.

Mah Sing also said the land acquisition and the development of M Senyum align well with the group’s strategy of focusing on affordable landed homes in the outskirts/suburban areas.

It further added that M Senyum also strengthens Mah Sing’s portfolio composition with affordable bread and butter landed homes, the segment that is most active currently.

“The proposed affordable double-storey terraced houses of M Senyum aligns well with the group’s current strategy of focusing on affordably priced properties within strategic locations in Greater Kuala Lumpur and Klang Valley. For 2021, 51 per cent of the group’s properties are priced below RM500,000 and 91 per cent are below RM700,000.

“The mid-range products of M Senyum are expected to attract a large catchment of home upgraders as this development is nearby to established townships such as Kota Warisan, Bandar Baru Nilai, Dengkil, Putrajaya, and Cyberjaya. The affordable price point would also attract homebuyers who are considering new properties in Seremban, as the new development would provide them a Klang Valley address,” it said.

Mah Sing said it will leverage its track record, established branding, and in-depth knowledge of the market demand to create a desirable development.

In recent years, the developer has built up its brand presence in the southern part of Klang Valley with notable townships such as Southville City in Bangi and Garden Residence in Cyberjaya.

Mah Sing said it will continue to scout for more lands which suit its fast turnaround business model with Greater Kuala Lumpur and Klang Valley being the focus areas, riding on its healthy balance sheet with cash and bank balances and investment in short-term funds of about RM1.13 billion as of September 30, 2020.

The group has been increasing its presence in Klang Valley through acquisitions of strategic lands to develop projects like M Vertica in Cheras, M Centura and M Arisa in Sentul, M Adora in Wangsa Melawati, M Luna in Kepong, and M Oscar off Kuchai Lama as the demand for property remains resilient as a result of urbanisation, population, and economic growth.

“These projects with healthy take-up have proven the group’s ability to acquire reasonably priced prime lands and provide tailored products that meet the requirements of the target customer segment,” it said.

Source: NST