KUALA LUMPUR (May 31): Mah Sing Group Bhd is scouting the Klang Valley, Penang, Sabah and Iskandar Malaysia, Johor in search of land to boost its landbank.
Group managing director and CEO Tan Sri Leong Hoy Kum said the group has achieved 73% of the RM5 billion gross development value (GDV) planned for this year.
Its current landbank is more than 1,500 acres (600ha).
"There are still seven months to go this year so we need to lock in more land. The land must also fit into our business model," said Leong, adding that Mah Sing wants to maintain the lead position in the property market.
The property group may acquire land via joint ventures (JVs) with landowners or participation in government land privatisation.
Mah Sing has 39 ongoing projects in various stages from planning to mature. It has a GDV of RM18.2 billion, of which 98% is unbilled sales.
As at May 15, the group achieved property sales of RM1 billion or 40% of its 2012 sales target. Properties in greater KL contributed 82% to sales, followed by Johor Baru with 10% and the rest from Penang.
Leong said the projects are in well-placed locations and can sustain the company's earnings for the next eight years.
"We deliver the right products coupled with strong branding and a good track record. I would say we are doing the right thing and will continue to do the right thing," he said.
Leong said Mah Sing will continue to focus on mass market property worth below RM1 million, such as link houses, and landed property of above RM1 million in good locations, such as its bungalows and semi-detached units in Cyberjaya.
Asked if the group has plans to expand overseas, Leong said the focus remains in Malaysia as it is doing well but it will continue to explore.
"We are cautious but will not stop exploring. When the right time comes, then we will decide," he said.
For 1QFY12 ended March 31, the group posted RM457.8 million in revenue and RM59.9 million in net profit.
Commenting on property prices in the Klang Valley, Leong said prices are holding well.
"Only selected places in the Klang Valley would do well and appreciate more. This year house prices should maintain," he said, adding that the group's projects in Rawang and Bangi, M Residences and Southville City are expected to do well.
Mah Sing is also looking to lock in more land in Iskandar Malaysia, Johor where it has one industrial and four residential projects.
"Iskandar region is well-positioned. Most of the products should be able to attract buyers from Singapore. It is definitely the next destination to invest in for foreigners and locals," he said.
He expectis its industrial project Mah Sing Hi-Park there to do well due to its close proximity to the Port of Tanjung Pelepas.
Mah Sing's new launches have not been severely affected by tighter home loan requirements by Bank Negara Malaysia.
Its Garden Plaza project in Penang has a take-up rate of 70% for Tower 1 and 65% for Tower 2, while the land in Rawang it acquired last October has locked in RM81 million in sales.
"Malaysia has a young population and high savings rate. And the banks still give competitive rates. Our market is actually targeting first-time buyers and up-graders. That segment is not affected," said Mah Sing executive director Steven Ng.
Leong said the group intends to target the foreign buyers, who make up about 5% to 10% of its clients.
It has set up an office in Shanghai and will be setting up offices in Jakarta, Singapore and the UK to attract investors, especially through the Malaysia My Second Home programme.
This story appeared in The Edge Financial Daily on May 31, 2012.
Group managing director and CEO Tan Sri Leong Hoy Kum said the group has achieved 73% of the RM5 billion gross development value (GDV) planned for this year.
Its current landbank is more than 1,500 acres (600ha).
"There are still seven months to go this year so we need to lock in more land. The land must also fit into our business model," said Leong, adding that Mah Sing wants to maintain the lead position in the property market.
The property group may acquire land via joint ventures (JVs) with landowners or participation in government land privatisation.
Mah Sing has 39 ongoing projects in various stages from planning to mature. It has a GDV of RM18.2 billion, of which 98% is unbilled sales.
As at May 15, the group achieved property sales of RM1 billion or 40% of its 2012 sales target. Properties in greater KL contributed 82% to sales, followed by Johor Baru with 10% and the rest from Penang.
Leong said the projects are in well-placed locations and can sustain the company's earnings for the next eight years.
"We deliver the right products coupled with strong branding and a good track record. I would say we are doing the right thing and will continue to do the right thing," he said.
Leong said Mah Sing will continue to focus on mass market property worth below RM1 million, such as link houses, and landed property of above RM1 million in good locations, such as its bungalows and semi-detached units in Cyberjaya.
Asked if the group has plans to expand overseas, Leong said the focus remains in Malaysia as it is doing well but it will continue to explore.
"We are cautious but will not stop exploring. When the right time comes, then we will decide," he said.
For 1QFY12 ended March 31, the group posted RM457.8 million in revenue and RM59.9 million in net profit.
Commenting on property prices in the Klang Valley, Leong said prices are holding well.
"Only selected places in the Klang Valley would do well and appreciate more. This year house prices should maintain," he said, adding that the group's projects in Rawang and Bangi, M Residences and Southville City are expected to do well.
Mah Sing is also looking to lock in more land in Iskandar Malaysia, Johor where it has one industrial and four residential projects.
"Iskandar region is well-positioned. Most of the products should be able to attract buyers from Singapore. It is definitely the next destination to invest in for foreigners and locals," he said.
He expectis its industrial project Mah Sing Hi-Park there to do well due to its close proximity to the Port of Tanjung Pelepas.
Mah Sing's new launches have not been severely affected by tighter home loan requirements by Bank Negara Malaysia.
Its Garden Plaza project in Penang has a take-up rate of 70% for Tower 1 and 65% for Tower 2, while the land in Rawang it acquired last October has locked in RM81 million in sales.
"Malaysia has a young population and high savings rate. And the banks still give competitive rates. Our market is actually targeting first-time buyers and up-graders. That segment is not affected," said Mah Sing executive director Steven Ng.
Leong said the group intends to target the foreign buyers, who make up about 5% to 10% of its clients.
It has set up an office in Shanghai and will be setting up offices in Jakarta, Singapore and the UK to attract investors, especially through the Malaysia My Second Home programme.
This story appeared in The Edge Financial Daily on May 31, 2012.
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