Mah Sing Group Berhad (Mah Sing) announced its third land acquisition in 2021 recently, securing approximately 8.09 acres of prime land in Mukim Batu, Daerah Kuala Lumpur for RM95 million.
Mah Sing’s Founder and Group Managing Director, Tan Sri Dato’ Sri Leong Hoy Kum said in a statement, “In view of the pent-up demand for affordably priced homes, I am delighted to announce that we have acquired yet another piece of land under the M Series banner named M Nova in the high catchment area of Kepong.
“M Nova will be Mah Sing’s third project in the area and we are confident that it will do well as our earlier developments here. This new land acquisition will further solidify our footprint in Kepong and strengthen our competitive positioning in the affordable segment. In fact, we are actively scouting for more good lands in strategic locations.”
Based on preliminary plans, this new project named M Nova is envisioned to be a mixed development with an estimated gross development value (GDV) of approximately RM790 million, according to the developer.
The proposed development is planned to comprise serviced residences with indicative sizes of 700 sq ft, 850 sq ft, and 1,000 sq ft, supported by some retail component. The most affordable residential unit’s indicative selling price starts from RM318,000.
In line with Mah Sing’s quick turnaround model and subject to authorities’ approval, M Nova is targeted for registration of interest in the first quarter of 2022 and is estimated to be launched in the third quarter of 2022.
Meanwhile, Mah Sing registered a 65% increase in profit before tax (PBT) of RM166.4 million on the back of revenue of RM1.2billion for the nine-month period ended 30 September 2021 as compared to PBT of RM100.6million and revenue of RM1.1 billion in the corresponding period a year ago.
The developer also achieved RM1.28 billion new property sales for the nine-month period ended 30 September 2021, a surge of 51.1% compared to RM847.1 million in the same period last year.
Mah Sing observes an upward trend in its property sales, mainly from the Group’s M-Series of affordably priced high rises in central business district and landed properties located in strategic locations with good catchment areas.
For instance, the developer’s 2-storey link homes in Johor Bahru ie Phase 1 of Erica@Meridin was fully taken up during its launch, and Phase 2 is now open to meet the demand. Mah Sing’s new project like M Adora in Wangsa Melawati that was launched last year also recorded strong take-up rates of approximately 90%.
In addition, Mah Sing has received overwhelming interest for its 2 newly acquired lands in 2021 – M Senyum in Sepang and M Astra in Setapak, which the Group targets to launch in Q1/Q2 2022.
Mah Sing’s balance sheet remains healthy with cash and bank balances and investment in short-term funds of approximately RM720.1 million as at 30 September 2021. This will be the main driver for the Group to continue with its disciplined land banking strategy for future growth.
Including all three new lands acquired to-date i.e. M Senyum in Sepang, M Astra in Setapak and M Nova in Kepong, the Group has a remaining landbank of 2,051 acres with a remaining GDV and unbilled sales of approximately RM24.98 billion.
“We are bullish on our M-Series which caters for the affordable segment in line with the current market demand. Encouraged by the positive track record and rapid turnaround time of our projects, we are continuously eyeing for more land with Greater Kuala Lumpur, Klang Valley, Johor and Penang being the focus areas, as well as looking at other property hotspots in Seremban, Melaka and Perak to develop affordable landed homes,” said Leong.