Mah Sing Group Berhad (Mah Sing) acquired a new 5.47acres prime land in Mukim Batu, Taman Metropolitan, Kepong for approximately RM94.8million. The land is ready for immediate development as it comes with approved development order (DO) for serviced apartments. The new project – M Luna is planned for registration of interest exercise in the fourth quarter of 2019 (4Q2019), which would allow the Group to ride on the extended timeline for the national Homeownership Campaign (HOC).
The land is just 200meters from the 235acre Kepong Metropolitan Park which also includes a 140acre lake. It is next to the Middle Ring Road 2 (MRR2), which will provide residents with direct access to the project.
Mah Sing’s Founder and Group Managing Director Tan Sri Dato’ Sri Leong Hoy Kum said, “This is our second land acquisition for 2019, and this deal reflects Mah Sing’s ability to acquire reasonably priced prime lands which are ready for quick-turnaround. The land is ready for immediate development as it comes with DO obtained and the vendors had paid charges pursuant to the DO to the relevant authorities. The strategic location will be even better enhanced with some proposed infrastructure improvement in the vicinity. This is a good location for a niche development.”
Similar to the Group’s recently acquired 4.63acres land, M Oscar located off Kuchai Lama, next to Happy Garden, which is currently open for registration and is planned for preview in 3Q2019, Mah Sing intends to leverage on its proven track record in developing affordably priced quality homes in strategic locations to meet current market demand.
Based on preliminary plans, M Luna will have a GDV of approximately RM705million and is planned for 2 blocks of serviced apartments with a “luxury you can afford” concept. The most affordable units would have an indicative built up from 700sq ft and indicative starting price from RM385,000.
The project will enjoy the amazing Bukit Lagong Forest Reserve view, located close to the Forest Research Institute Malaysia (FRIM), Kepong and is 200m from the Kepong Metropolitan Park. This 235acres park is a vast area that consists of a 140acres lake where anglers will be allowed to fish.
It is located 5km from Lakeville Residence in Taman Wahyu, Batu Caves, one of Mah Sing’s matured residential developments, which was well received with its six residential towers recording 99% take-up rate to-date due to their strategic location with well-connected matured neighbourhood and proximity to the city centre. Residents will be able to have good accessibility with MRR2 located next to the project, whilst Jalan Kuching is merely 2.3km away.
The project is 3.3km to the upcoming Metro Prima MRT2 Station, which is targeted to start operations in 2021, and 4km from the Taman Wahyu KTM station.
Additionally, there are plans for an upcoming proposed infrastructure improvement within the surrounding vicinity, which includes the construction of a road and 2 interchanges connecting Jalan Kepong to MRR2. It is also connected to the North South Express Highway via MRR2, which provides convenience to the buyers who frequently travels to the Northern and Southern region. Given its strategic location with ready infrastructure and amenities within the vicinity, M Luna is set to be an ideal home for homebuyers at affordable pricing points.
Based on population analysis and market survey, Mah Sing intends to target mainly first-time homebuyers and upgraders. M Luna is planned to be developed over a span of 4 years. This strategy augurs well with various on-going government initiatives such as the recently extended timeline for HOC, a campaign that introduces various incentives to assist and encourage home ownership, coupled with The Securities Commission Malaysia’s latest property crowdfunding framework – an initiative, announced in Budget 2019 to provide an alternative financing avenue for first-time homebuyers. With all these initiatives in placed to boost home ownership, the Group is looking forward to a positive and encouraging response from the market.
Tan Sri Dato’ Sri Leong Hoy Kum said, “Our latest project, M Luna is planned for 2 blocks of affordable serviced apartments with an indicative built up from 700SQFT and indicatively priced from RM385,000. The location of the land is very prime to build affordably priced projects of good quality in strategic locations, which bodes well with our growth strategy and tagline, ‘Reinvent Spaces. Enhance Life.’ We understand that there are plans to improve the surrounding infrastructure of the project, which will provide great convenience to homebuyers, as they will have multiple alternative point of access to the development. M Luna is targeted at first-time buyers and upgraders and we shall be doing a registration of interest exercise in the fourth quarter of 2019.”
He added, “As a market driven developer, we understand the customers’ needs, which is why we are always committed to continue building sustainable developments of good quality. This latest acquisition fits our strategy of landbanking for projects in good locations, which are ready for immediate development – suitable for launching of “luxury you can afford” products for mass and mid-range market. Our strategy is on the right track supported by the demand-supply gap in Malaysia, whereby there are 212,744 new households formed per year compared to 88,000 new houses completed per year (2012 to 2017). We will continue our strategy of providing homes with luxury features at affordable prices as we believe demand will persist for the right product, in the right location, at the right pricing.”
The acquisition will increase Mah Sing’s prime landbanks to 2,104 acres, with total remaining GDV and unbilled sales of RM25.84billion, which can sustain growth over the next 8 – 9 years. The Group currently sits on healthy balance sheet with cash and bank balances of RM1.3billion for the quarter ended 31 March 2019, which will allow the Group to drive its key strategy in replenishing land banks especially in the Klang Valley area.
The new development intend to address the demand of homes with affordable price points in sought after locations in the Klang Valley, similar to the Group’s current residential projects such as M Vertica in Cheras; M Centura in Sentul; M Aruna in Rawang and Cerrado as well as Sensory in Southville City @ KL South – catering to the middle income group and mass market with “luxury you can afford” products.
The Group’s focus on this segment has continued to be positive driven by Mah Sing’s branding and in-depth knowledge of market catchment that has enabled continuous innovation and development of tailored products that meet the requirements of this targeted customer segment. With excellent location and accessibility coupled with mature catchment, established amenities and backed by the Group’s recent successful residential launches in nearby locations, the management is confident that the new project will be well received. Demand in Klang Valley is expected to be further supported by population growth, urbanisation, household formation and on-going infrastructure improvement projects.
The land is surrounded by 6 public schools i.e. SMK Kepong (2km); St. Mary’s School Kuala Lumpur (4.5km); SK Intan Baiduri (4.8km); SK La Salle 2 (5.9km); Jinjang (M) SMK Jinjang (6.2km) and SJKC Jinjang Utara (6.5km). Residents will be able to have strategic access to hospitals and healthcare facilities namely UiTM Medical Faculty Splaying Campus (5.5km); Taipei TCM Medical Center (4.3km) and Hospital Selayang (5km), along with nearby shopping malls and market places such as Aeon Big Kepong (3km); Aeon Mall Metro Prima (3.4km); Selayang Mall (3.9km); Brem Mall (7km); Pasar Borong Selayang (7.4km) as well as Tesco Extra Selayang (8.9km).
The project will also enjoy a large captive market as the land straddles the highly populated and established neighbourhoods of Kepong, Taman Selayang Jaya, Batu Caves, Bandar Menjalara, Segambut, Taman Seri Gombak and Sentul, which are within a 3km radius of the project and is only 14km away from KLCC. These are densely populated residential communities, which are highly accessible via major highways and trunk roads.