Mah Sing terminates RM60m land deal

PETALING JAYA: Mah Sing Group Bhd has terminated the proposed acquisition of 3.56 acres of freehold land in Kuala Lumpur due to non-fulfillment of the conditions precedent within the stipulated period.

In a filing with Bursa Malaysia, the group said its wholly owned subsidiary Mah Sing Properties Sdn Bhd terminated the sale and purchase agreement (SPA) dated May 17, 2017.

Recall that Mah Sing Properties had entered into the SPA with Saw Shiuo Shyong @ Sonny Saw for the proposed acquisition of five pieces of adjoining land in Kuala Lumpur for RM60 million.

The property developer had initially planned to develop a residential condominium on the land with an estimated gross development value (GDV) of up to RM650 million.

The proposed acquisition would have increased the group's landbank to 2,328 acres with a total remaining GDV and unbilled sales of RM30.9 billion.

Upon termination, Saw will refund the deposit of RM6 million to Mah Sing Properties, of which RM4.8 million has already been received and the balance RM1.2 million to be refunded by Saw's solicitors together with interest earned thereon.

The group said it still has 34 on-going projects in various stages of development, providing growth and earnings visibility for at least the next eight years.

The termination is not expected to have any material effect on the earnings per share, net assets per share and gearing of the group for the financial year ending Dec 31, 2017.

Mah Sing's share price rose 0.64% to close at RM1.57 on Thursday with a total of 1.67 million shares traded, giving it a market capitalisation of RM3.77 billion.