Location map of Mah Sing’s Glengowrie Estate township.
KUALA LUMPUR: Mah Sing Group Bhd (Mah Sing) has acquired 500 acres of freehold land in Semenyih from SP Setia Bhd, via its subsidiary Petaling Garden Sdn Bhd, for a cash consideration of RM392mil.
The group entered into inter-conditional sale and purchase agreements with Elite Park Development Sdn Bhd, Grand Prestige Development Sdn Bhd and Mestika Bistari Sdn Bhd, all three wholly owned by Mah Sing for the land located in Glengowrie, Semenyih.
The land is situated in the matured township of Semenyih, located to the south of Eco Forest and the east of Bandar Tasik Kesuma. The land also borders the Seremban district giving it a captive target market.
With an estimated gross development value (GDV) of RM3.3bil, Glengowrie Estate is planned as an integrated township development comprising mainly double-storey landed homes with indicative prices starting from RM446,800.
Mah Sing founder and group managing director Tan Sri Leong Hoy Kum said this is the group’s most significant land acquisition in recent years and the scale of the project will allow very good master planning.
“The acquisition will increase our township lands which will cater for the demand for landed residential properties in the suburbs, in addition to high-rise residential properties in the city and industrial land in suitable locations. Glengowrie Estate will build on the success of our affordable land and township developments such as M Senyum in Salak Tinggi, M Aruna, M Panora and M Residence 1&2 in Rawang, Southville City in Bangi and Meridin East in Johor.”
“Glengowrie Estate is envisioned as an integrated and sustainable township in Semenyih where residents' lifestyles are self-contained and do not require them to travel far to fulfil their daily needs. With its strategic location in Semenyih and approximately 30 minutes from Kuala Lumpur, we believe this development will appeal to first-time home buyers who prefer to live in a self-contained township development away from the city. The development is also suitable for young families who live with their children and parents,” said Leong.
SP Setia president and chief executive officer Datuk Choong Kai Wai said: "The sale of this land is a good move for us. The sale proceeds will be used for investment into strategic project developments as well as debt repayment. We are confident that this sale will contribute positively to S P Setia's profits and is a step towards achieving the company's long-term goals. S P Setia remains committed to delivering high-quality projects and creating value for its stakeholders”.
The Glengowrie Land is located in a strategic location, easily accessible from Semenyih and Kajang towns via Jalan Semenyih, and from various parts of Klang Valley via the LEKAS Kajang-Seremban expressway. This sale is part of S P Setia's strategic plan to improve capital efficiency by monetising its identified land banks and aligns with the company's long-term plan to move towards a lighter asset structure.
According to preliminary plans, this integrated township will be developed with double-storey landed homes, well-planned amenities and commercial lots. Subject to authorities’ approval and fulfilment of conditions precedent, the proposed development is expected to commence by the third quarter of 2024 and to be developed over eight to 10 years. The awareness programme and registration of interest for the project are expected to commence in 2024.
Leong said: “This is Mah Sing's third land acquisition this year, following the acquisition of M Tiara, a 75.7-acre freehold land in Mukim Pulai, Johor Bahru with an estimated GDV of approximately RM480 million on 13 June. In January, the Group also acquired an 8-acre plot of land in Puchong to develop M Hana and M Terra, a transit environment district (TED) development with a total estimated GDV of approximately RM726 million.”
The acquisition will increase Mah Sing’s prime landbanks to 2,418 acres, with total remaining GDV and unbilled sales of RM26.86bil. Supported by its strong balance sheet, Mah Sing continues eyeing more good lands with priority given to lands suitable for affordable M Series landed and high-rise residential, and industrial developments.
The group believes that demand for medium-priced housing aimed at first-time and younger middle-class home buyers, as well as those looking to upgrade to a well-planned mixed development in Klang Valley, Johor Bahru and Penang Island, will gradually increase over the next few years.
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