(Updated)

Mah Sing subsidiary buying KL land for RM618m mixed development

Mah Sing subsidiary buying KL land for RM618m mixed development
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KUALA LUMPUR (May 4): Mah Sing Group Bhd’s wholly-owned subsidiary Nova Century Development Sdn Bhd is buying an approximately two-hectare (about five acres) land in Tempat Jalan Genting Kelang, Setapak here for a proposed estimated RM618 million mixed development comprising residential and retail components.

In a filing with Bursa Malaysia, Mah Sing said Nova Century today entered into a conditional sale and purchase agreement with seller Teratai Constructors Sdn Bhd for the acquisition of the leasehold industrial land, which bears the postal address of Lot 27, Jalan Usahawan 5, Kawasan Perindustrian Ringan in Setapak here.

"The group will be applying with the relevant authorities for the conversion of land use," Mah Sing said.

"Based on preliminary plans and subject to approval of the authorities, the new project to be named M Astra is expected to have an estimated gross development value (GDV) of approximately RM618 million, and is planned for a mixed development comprising two blocks of serviced suites and some retail lots.

"The land is predominantly flat and currently houses the Sri Utama International School Kuala Lumpur. The land, which has three frontages facing Jalan Usahawan 5, Jalan Kilang and Jalan Usahawan 6 [respectively], is just 600 metres off Jalan Genting Kelang, which is a major trunk road in Kuala Lumpur,” Mah Sing said.

Mah Sing said the company intends to fund the costs and expenses related to the proposed acquisition and development through a combination of internally-generated funds and bank borrowings.

The exact funding mix will, however, be decided by the company at a later stage after taking into consideration the group’s gearing level, interest cost and internal cash requirements for its business operations, according to Mah Sing.

"Barring any unforeseen circumstances, the proposed acquisition is expected to be completed in the fourth quarter of 2021 (4Q21),” the company said.

At 5pm today, Mah Sing’s share price closed down two sen or 1.96% at RM1, which valued the company at about RM2.43 billion.

Mah Sing shares were traded between 99 sen and RM1.03 today.

Chong Jin Hun