Mah Sing to focus on mid-range segment

BY EVA YEONG
sunbiz@thesundaily.com

PETALING JAYA: Mah Sing Group Bhd, whose pipeline of launches next year are mostly below RM1 million, expects strong overall demand for mass market properties in 2015, said its group managing director and group chief executive Tan Sri Leong Hoy Kum (pix).
“This is due to first time home buyers, upgraders, new household formations and government incentives for first time home buyers under Budget 2015,” he told SunBiz.
He said the demand was reflected in the success of its launches in the mass market, mid-range segment, such as Savanna Executive Suites in Southville City@ KL South, Bangi, Lakeville Residence in Taman Wahyu, Kuala Lumpur and D’sara Sentral in Sungai Buloh which were priced from RM338,000, RM529,800 and RM548,000 respectively.
“New growth corridors will benefit from the ongoing and proposed major infrastructure projects such as the Mass Rapid Transit (MRT), Light Rail Transit (LRT) and extension, and the proposed High Speed Rail. For instance, our Lakeville Residence in Kepong will benefit from the second MRT line while our recently acquired land in Shah Alam land will benefit from LRT3 as its alignment passes through Section 13 of Shah Alam,” he added.
In Johor, Mah Sing’s Bandar Meridin East project is expected to benefit from the Pengerang oil and gas project which will create 10,000 new jobs while its Southville City@KL South in Bangi has a direct interchange from North South Expressway, easily within reach of end stations for MRT 1 and 2 in Kajang and Putrajaya.
Leong said the group expects to continue with its strategy of targeting the mid-range market, whereby 84% of its launches will be priced below RM1 million in 2015.
“2014 has been a challenging but rewarding year as we managed to deliver our various key performance indicators in terms of sales, landbanking and also financial performance. We were also pleased to be recognised for our efforts by the industry, public, clients and media,” he said.
For the nine-months ended Sept 30, 2014, the group achieved sales of RM2.5 billion. Its revenue and net profit saw 25% compounded annual growth rate over the last five years, with 15% average return on equity.
“In 2014, Mah Sing acquired landbanks in both Puchong and Seremban, to target the mass market and upgraders. The developments in Puchong and Seremban are intended to offer mass market products with pricing starting from RM585,000 and RM350,000 respectively. In addition, the group also acquired part of the Sultan Salahuddin Abdul Aziz Shah Golf course (KGSAAS) in Shah Alam to cater to the high-end market in the medium-long term.
“These acquisitions have a collective potential gross development value of approximately RM19.3 billion and have increased the group’s project portfolio to a total of 48 to-date (including ongoing and completed projects),” said Leong.
The group’s unbilled sales of RM5.1 billion as at Sept 30, 2014 combined with its remaining GDV, land deals and memorandum of understanding for new land is estimated at RM66 billion, which will keep the group busy for at least nine to 10 years.