Mah Sing Group Bhd eyes to launch RM2.2 billion worth of projects aimed at middle-income buyers this year. In fact, the company’s projects in Sentul, Cheras and Bangi are mainly built for the affordable housing segment, specifically the middle 40 percent income group (M40).
“We are not doing the B40 group because I think the government is taking care of that part,” said MAH Sing Group Bhd Executive Director Datuk Steven Ng Poh Seng during the Invest Malaysia 2019 event on Tuesday (19 March), reported The Malaysian Reserve.
Mah Sing achieved RM1.5 billion in property sales last year, 83 percent of which came from residential units priced below RM700,000.
For this year, the property developer will have much lower sales target than the RM3.4 billion achieved in 2014.
“We are being very conservative at a RM1.5 billion sales target,” stated Ng.
The target reflects today’s property market which is plagued by an acute overhang, especially in Johor, Penang and Klang Valley.
Even Mah Sing has a high number of unsold completed units.
Despite this, the group was in a net cash position in 2018, with RM1.22 billion in cash and bank balances as at 31 December 2018.
With this, Mah Sing plans to expand its landbank, especially in the Klang Valley, and will target niche developments that can immediately be developed.
The developer currently owns 2,105 acres (851.86ha) of land in Malaysia, with RM25.7 billion in gross development value and unbilled sales.
Meanwhile, Ng viewed the government’s mandate to reduce government-linked companies’ exposure to public-listed firms as not across the board.
“Surely, (local institutional investors) still want to invest in assets that give them good returns. It is the same for us,” he said.
Local institutions own about 41 percent combined interest in Mah Sing, with the largest stake held by Permodalan Nasional Bhd at about 17 percent.
Image source from Southville City