Mah Sing buys land in Johor Bahru for RM103.7 mln
KUCHING: Mah Sing Group (Mah Sing) announced that its wholly-owned subsidiary, Venice View Development Sdn Bhd had entered into a conditional sale and purchase agreement with Amanah Raya Berhad for the proposed acquisition of 100.4 acres of freehold land in Mukim Pulai, Daerah Johor Bahru for a purchase consideration of RM103.7 million.
The proposed land acquisition was following the the acquisition of 75.7 acre of land for development named M Tiara from the same vendor on June 13, 2023.
The proposed development of the new land to be named M Tiara 2 is 400 metres from M Tiara.
Researchers with MIDF Amanah Investment Bank Bhd (MIDF Research) expects the land acquisition to be positive to Mah Sing as it allows it to continue growing its exposure to Johor property market.
“The land is strategically located between the townships of Mutiara Rini and Lima Kedai. M Tiara 2 is expected to continue success of M Tiara as M Tiara attracted more than 5,000 registrations of interest for its 754 units of double-storey terrace and cluster homes.
“Proposed developments on M Tiara 2 are landed homes with indicative selling price starts from RM770,000 and serviced apartments with indicative starting price from RM253,000.
“Total GDV for M Tiara 2 is
estimated at RM1.45 billion which translates into attractive land cost to GDV ratio of 7.2 per cent, lower than land cost to GDV ratio of 16 per cent for M Tiara.”
Meanwhile, Kenanga Investment Bank Bhd’s research firm (Kenanga Research) found the purchase price fair from a land-to-GDV perspective, and price per square foot standpoint.
“Compared against Ecoworld’s purchase of Eco Botanic 2 land back in 2019 located circa 10km
south from M Tiara 2, M Tiara 2’s land/GDV ratio is seven per cent which is lower compared to Eco Botanic 2’s land/GDV ratio of about 18 per cent.
“Meanwhile, M Tiara 2’s RM23 psf price tag is at a discount against Eco Botanic 2’s RM35 psf purchase price (for 200 acres) given its less strategic location.
In terms of its indicative starting price; at RM772,000 for terraced houses and RM253,000 for serviced apartments, we
see reasonable pricing points when compared with the listed asking prices of approximately RM600,000 to RM900,000 for terraced houses and RM300,000 for serviced apartments for sub-sale homes within the vicinity.
“Overall, we are slightly positive as the intended development is fairly priced with a highly sought-after address in a mature area, allowing for quick monetisation.”