KUALA LUMPUR: Mah Sing Group Bhd will launch a RM1.1 billion mixed-development project in Medini, Iskandar Malaysia, in the second-half next year, following the signing of a lease purchase agreement with Iskandar Investment Bhd.
The project, dubbed The Meridin@Medini, will comprise the Meridin Suites residences, Meridin Linx small office versatile offices, Meridin Walk lifestyle retail mall and Meridin Exchange corporate towers.
The Meridin@Medini project also marks Mah Sing's 40th project. With the signing, the company's total gross development value and unbilled sales stand at about RM18.8 billion with an earnings visibility of eight years.
Mah Sing group managing director Tan Sri Leong Hoy Kum said the company will not have cash-flow strains with the new project in Medini as well as other ongoing projects it has in hand.
"With Mah Sing's strong branding and our very much market-driven products, these have resulted in good take-up rate of our products of at least 70%.
"We are a company that is gearing-conscious. We manage our cashflow prudently and manage our risks as a responsible developer," Leong said at the media briefing.
The first phase of the project, Meridin Suites, will comprise over 700 units of residential units priced from RM288,000 (Size: 500 sq ft). Registration of interest will commence immediately.
The lease purchase agreement, which is for a period of 99 years, is for the 3.32ha of prime development land in Zone A, Medini, for a total consideration of RM74.7 million.
The first 10% shall be paid upon signing of the lease agreement with the remaining balance to be paid over a five-year period.
"As a strategic developer of catalytic projects, it is important for us to identify the critical components that will complement the ecosystem that we have put in place in positioning Medini as the central business district of Nusajaya.
"Towards this, I feel that projects such as The Meridin@Medini will potentially elevate the profile of Medini as a preferred real estate and investment destination to new heights," said Iskandar Investment president and CEO Datuk Syed Mohamed Syed Ibrahim.
The Asia Pacific Property Awards 2011 in association with Bloomberg Television recently informed Mah Sing Group that it is amongst the winning companies.
Successful entrants have been invited to attend a high profile gala presentation dinner at the Longemont Hotel Shanghai on May 31.
Mah Sing Group will then discover whether the company has won a five-star or highly commended award in the categories of Best Mixed-Use Development for its Southbay City in Penang project, Best Industrial Development for its i-Parc3 at Bukit Jelutong project, Best Retail Development for its Star Avenue at Damansara project and Best Website.
Group managing director and chief executive Leong Hoy Kum said of the awards, “We are very pleased that our projects have been shortlisted to be among the best in Asia Pacific. Last year our residential projects won three awards and this year, our commercial and industrial projects have been recognised for their outstanding concepts and design.”
Leong said the recognition is a strong testament to the high quality that the Group place on each of its project.
“We also place high emphasis on communicating with our stakeholders though various channels, and thus we are very pleased that our website has been recognised to be among the crème of the crème in the Asia Pacific region,” he added.
The event is part of the long established International Property Awards and its award winners’ logo is recognised as a symbol of excellence throughout the global industry.
Later this year, the highest scoring winners from the Asia Pacific Property Awards will compete against other winning companies from Europe, Africa, the Americas and Arabia to find the ultimate World’s Best in each category.
The Asia Pacific region has an enviable record of achievement at international level, having scooped seven World’s Best awards in the finals of both 2009 and 2010.
The judging panel is chaired by Lord Bates of Langbaurgh and consists of more than 60 professionals whose collective knowledge of the property industry is unsurpassed by any other property awards.
This year’s judges include UK account manager of Google James Bacon; group chief executive of the National Federation of Property professionals Peter Bolton King; the Royal Institute of Chartered Surveyors (RICS) David Dalby; and the Royal Bank of Scotland (RBS) Mike McNamara.
In an exclusive interview with iProperty.com.my, Mah Sing Group Bhd’s Group Chief Executive and Group MD Tan Sri Dato’ Sri Leong Hoy Kum gives an account of Mah Sing’s meteoric rise from a plastic trading house to one of the most admired developers in Malaysia, winning numerous accolades.
Tell us how you came to the decision to venture into property development? What inspired you or was it a purely business decision?
Mah Sing Group Berhad started out as a plastic trading house, went on to be listed on the Second Board of the Kuala Lumpur Stock Exchange in 1992, re-designated to the property sector in 2000 culminating in its transfer to the Main Board of Bursa Malaysia Securities in 2004.
I’ve always had the vision to grow the company into one of the top in the business. After establishing Mah Sing as an industry leader in the plastics business, I looked for ways and means to increase and enhance shareholders’ value.
Through my satisfaction in personal investments and passion in designing my own home, I decided to venture into property development in 1994. At that time, the property sector was going through an up cycle and I saw the potential of improving shareholders’ value through property development. The company emphasizes on maximizing returns to the shareholders and it is through this philosophy that Mah Sing has grown from strength to strength since 1994.
The initial years were learning years for us and our capital base was small. We have performed especially well in the past seven years where our revenue rose by more than 4 folds to RM701.6 mil, and net profit grew nearly 18 folds to RM94.3 mil up to 31 December 2009. This is a healthy compounded annual net profit growth rate of 51%.
Since we ventured into property development, we have received over 30 international and domestic awards in recognition of our outstanding corporate performance and products.
It has taken us years to be what we are today and our success is a collective effort. It may sound simple, but a lot of research and commitment are needed to ensure that the product fits buyers’ needs and aspirations, at a price tag that they can afford.
An important lesson learnt is to continuously strive for better results. We must always remind ourselves to be humble so that we do not get carried away during our voyage. This is how we have grown from strength to strength and our balance sheet has stayed very healthy for further expansion.
What were your initial difficulties and how did you overcome them?
We had a steep learning curve in the beginning. When we first started, we did not have a strong balance sheet, nor a large landbank. To overcome this, we adopted a quick turnaround strategy which helped us to be capital efficient as we rolled over our capital and balance sheet and this helped us to grow our balance sheet quite quickly to take on larger projects. With a stronger financial standing, banks were willing to give us a more favourable borrowing rate compared to when we first started.
We made a conscious decision to go medium, medium-high and high end with our properties, and our mantra was “location, quality and branding”. The Mah Sing brand encapsulates the concept, product, quality, standard of design, customer service and track record. We package all that with the right location and strategic marketing.
We have also moved from Johor Bahru to Klang Valley (Greater KL) and now Penang island, as we wanted to establish ourselves in the 3 property hotspots in Malaysia. Most of the property transactions take place in these locations and we want to capture the market share.
Another challenge that the company faced as a developer was during the Asian financial crisis of 1997. At that time, consumer sentiment was low, however, our Group was still profitable because of our quick turnaround business model which has been the backbone of our success over the past decade.
What are the factors contributing to Mah Sing’s success?
I would attribute our achievement to the right business model, dedicated staff, good and experienced pool of contractors, architects, consultants and suppliers, and last but not least our supportive customers.
Our key success factor is our business model for the past 10 years which hinged on fast turnaround. Land acquisition in multiple locations and quick launches allowed us to tap immediate market demand and enjoy good take up rates. We invest in research and development to ensure the projects meet buyers’ needs and complement their lifestyles.
Timely delivery is key and we are proud of our good track record. We have extended our strategy in recent years to reflect our current scale of operations. We are ready to acquire and develop large tracts of strategic land and look to venture overseas for new sources of earnings growth in the longer term, but the core of speed, discipline and innovation remains the same.
Of course, nobody can do all this alone, and I attribute our success today to our great team who are dedicated, skilled and loyal professionals. I can rely on them to execute what has been planned. Trust is very important and my management team knows that I trust them to do their job. When everyone is efficient, the whole organization benefits and people get to spend more quality time at home as well. Over the years we have also cultivated a panel of trusted contractors. We engage good and experienced contractors, architects, consultants and other suppliers who can deliver our vision.
We also have a strong base of customers, and we recently launched our rewards programme, the M Club. Among the privileges to be enjoyed by members are repeat purchase discount, buyer-get-buyer rewards, as well as birthday surprises with more rewards to be introduced in the near future.
What is your secret in being able to acquire prime land in all the right locations?
We are continuously scouting for land and we have a successful track record of acquiring prime land year after year. In 2010, we entered into 10 land deals with potential GDV totalling RM4 billion as part of our ongoing expansion plans. In line with our quick turnaround business model, we managed to launch and preview some of our projects for some of our land acquired in 2010 such as Kinrara Residence (Puchong), M Suites (Jalan Ampang), Star Avenue (Shah Alam), Garden Plaza (Cyberjaya), i-Parc2@Shah Alam and i-Parc 3 @Bukit Jelutong and the response has been very good.
We emphasize on value creation, namely the value that can be extracted from our land rather than the land size per se. We believe we can extract more through value enhancement. Our lands are able to yield high development values as they are sited in prime sites and mature for development.
Name a few up-and-coming hotspots in Malaysia.
Locations with excellent accessibility as well as potential for growth will continue to attract buyers and investors.
The Government’s initiative for Greater KL to be a National Key Economic Area would boost demand for properties in the area, especially since 24 of our 33 projects are located within Greater KL. Projects and properties near the proposed MRT alignments will be in high demand, and some of our projects such as M City, Icon Residence Mont’ Kiara, Star Avenue, M Suites, Hijauan Residence and One Legenda wil be the beneficiaries.
High profile, high value initiatives like the new Kuala Lumpur International Financial District, Sungai Besi Airport area and the new Sungai Buloh township also bode well for the surrounding areas. In fact, we recently launched Phase 1 of our commercial project, Star Avenue located near the RRIM project and the response has been very encouraging.
Cyberjaya is also gaining popularity with many MNCs setting up their base there and accessibility has improved significantly with major expressways. Mah Sing Group was one of the first developers to set foot in Cyberjaya to launch a landed residential development there - Garden Residence - which comprises superlink, semi-detached houses and bungalows. Our Garden Plaza, a mixed residential project has also received overwhelming response. Both our projects are doing very well, and we have acquired more land late last year to cater to the growing demand.
Which is your most successful development so far in terms of appreciation value? Sales?
As a premier lifestyle developer, we strive to provide value enhancement to our customers, and this is reflected in the value appreciation of our properties
Our landed residential developments such as Perdana Residence 2, Garden Residence and Residence@Southbay have done especially well, registering capital appreciation of between 25 to 50% in Compounded Annual Growth Rate. Perdana Residence 2 and Residence@Southbay have posted more than 95% take-up rate while Garden Residence has a take-up rate of about 83% on launched products.
We have set an ambitious sales target of more than RM 2 billion for 2011 as we believe the confluence of strong fundamentals such as low unemployment rate, high savings rate, strong economic growth and our branding, locations, concepts and products will make 2011 another good year for Mah Sing.
If there are 3 things you want to change about property development in Malaysia, what would they be?
We would like to see greater foreign participation in our property sector and both the private and public sectors work towards this direction, and we shall capitalize on our experience in value creation to enrich and improve the standard of living of not just the locals but foreign investors.
We hope the country can attract more talents, for example architects and other property sector professionals to contribute their skills and infuse Malaysia’s real estate landscape with more excitement. This will allow more industry benchmarks to be set, not only in terms of innovation and design but also quality service.
A higher standard of living and high income society will definitely bring property prices to benchmark against international standards.
Which areas will you be eyeing next in terms of land acquisition?
We will continue to focus on the nation’s three economic hotspots where we have established a strong foothold, namely Klang Valley, Johor and Penang.
Currently, we have total gross development value and unbilled sales of approximately RM11.35 billion from our remaining undeveloped landbank of 747 acres. Although our landbank is enough to sustain us for the next 7 years, we are still on the lookout for good land, and we have the balance sheet to fund the acquisition. Besides outright purchase, we are also open to joint ventures with land owners as we should be able to value enhance the land.
What is your vision for Mah Sing?
Mah Sing’s vision is to be a regional world-class developer and over the long term, we are also evaluating opportunities in high-growth countries like China, Australia, Vietnam, Indonesia, and Singapore.
How are your overseas ventures in Vietnam, China, Singapore and Australia doing?
We have done very well in Malaysia and we want to bring our award-winning concepts overseas. We want to broaden our earnings base but are very selective in our overseas ventures.
How much does your plastics business contribute overall to the Group’s earnings?
Our plastics business contributes less than 10% of our total net profit for the nine months financial period ended 30 September 2010. Nonetheless, it remains profitable and cash generative.
Tan Sri Dato’ Sri Leong Hoy Kum, Mah Sing Group Berhad’s Group Managing Director cum Group Chief Executive, recently commented, "Bank Negara has given earlier indications of such a move so this should not come as a surprise to many. The proposal to cap loan-to-value ratio at 70% affects 3rd house financing facilities onwards, and should not affect the overall sentiments of the market significantly which comprises mainly first time buyers and upgraders."
"We believe that there is no property bubble as price increases has only been for properties with good concepts by branded developers, and sited in good locations. As long as developers offer quality properties with good concepts in prime locations, there should still be takers due to our strong employment market, low interest environment and good liquidity in our financial system," he added.
Cyberjaya bides its time as a revival of sorts appears in the horizon with RM600 million sales in land expected this year, mainly to private developers
Self-sustaining ICT Centre
Of late, Cyberjaya has been hogging the limelight after a period of relative quiet. Not surprising as a flurry of property launches elsewhere spills over to this special enclave better known as Malaysia’s First Intelligent City. Question marks raised previously about its livability, despite its enviable features, are slowly beginning to be put to rest as more investments pour in, with estimates ranging between RM2 – RM5 billion so far.
Touted as the ‘Silicon Valley’ of Malaysia, this huge tract of land, next to the administrative capital, Putrajaya, was nothing more than an oil palm plantation 12 years ago. Former prime minister Dr Mahathir Mohammad then had this grand idea about transforming it into a self-sustaining knowledge-based nucleus, a copy of America’s Silicon Valley, if you will.
As with all grand ideas, it started with a bang in 1999 but thereafter development was rather slow and piecemeal. Despite several big name multinational companies operating there and three institutions of higher learning, the majority of students and ICT workers share the same sentiment about the place. As one Multimedia University student from Uganda, C. Okalaney said, as recent as August this year:
“Cyberjaya is a a baren land which can be good and bad at the same time. Foreign students like the fact that it’s quite far from the hustle and bustle of KL but it would help if there were hypermarkets, more eating places and a cinema or two within the vicinity so that we wouldn’t have to go far. As of now, you need to have self transport to get somewhere within a reasonable time. The buses have a long wait time. If I were to work in Cyberjaya, I wouldn’t buy property there. I would most likely live in nearby Puchong or Subang Jaya which is much cheaper and has a wider variety of amenities”.
That is all about to change, if the current momentum carries over within the next 10 -15 years. Since last year, estimates of up to 7 developers have purchased land in Cyberjaya and several big ones like Mah Sing Bhd and Glomac Bhd have launched new projects there. Setia Haruman’s chief operating officer Lao Chok Keang was recently quoted as saying that the price of commercial land there has increased to RM120 per sq ft from RM100 per sq ft. This is still way cheaper than land in Kuala Lumpur City Centre which at present averages about RM1,000 – RM2,000 per sq ft.
The COO added that Setia Haruman, the master developer is currently in talks with five parties, three of which are public-listed companies, who are keen to acquire land in Cyberjaya for development. Last year alone, land worth an estimated RM500 million was sold compared to RM300 million in 2008. This year, the figure is expected to rise to RM600 million, according to Lao. Currently, about 35% of 3,705 acres of saleable land has been taken up.
Cyberjaya covers 7,129 acres of freehold land consisting of four main zones known as enterprise, commercial, institutional and residential. Each zone is fully equipped with a host of intelligent network services and interactive broadband services. MNCs Inflow Continues
Total investments in building construction to date is about RM5 billion, Rashid Mat, General Manager (business, corporate communications and planning) of Cyberview Sdn Bhd, the landowner of Cyberjaya was quoted to have said. He added that the inflow of MNCs into Cyberjaya continues despite the global economic downturn. He was quoted to have said that Hewlett-Packard (HP), the world’s largest technology company headquartered in California, was keen to buy another piece of land to develop a data centre in Cyberjaya. Currently, Cyberview Sdn Bhd has developed 600,000 sq ft of office building on 28 acres (11.2 hectares) for HP.
Cyberjaya is currently home to more than 20 MNCs including Dell, Satyam, HSBC, Motorola, IBM, HP, data centres of Bank Negara Malaysia and Malaysian Communications and Multimedia Commission, universities, commercial zones and residential estates.
Within the next 10 – 15 years when it is expected to be fully developed, the city is expected to reach a population of 210,000 with business developments providing up to 120,000 employees and institutional establishments providing 30,000 students. This kind of population growth is naturally a huge magnet for the increasing number of developers beating a path there.
Cyberjaya reputedly has the best ICT infrastructure in the country, attracting many ICT entrepreneurs and technology experts, as well as captains of industry, business people and professionals who also appreciate the unspoilt lush greenery that abounds there.
Some of the world class infrastructures include: Cyber Metro Fibre Network (CMFN) - Fibre-optics communication backbone, known as Cyberjaya Metro Fibre Network (CMFN) delivering connectivity straight to the building
District Cooling - Economical use of off-peak electricity to chill water during the night, that runs the air-conditioning in buildings during the day.
Cyberjaya Dedicated Transport System (DTS) - Tracks buses and their routes via GPS - Tracks passengers for better management of employees
In addition, foreign companies and local MSC-status companies get incentives such as no income tax for up to 10 years or an investment tax allowance and no duties on import of multimedia equipment. More importantly to some, there is a guarantee that there is no censorship of the Internet
Highway to Progress
The best part, and perhaps its saving grace, is the Maju Expressway (MEX) which shortens the driving distance to KL City Centre to a mere 20-min drive, even during peak hours.
Other highways that connect and serve Cyberjaya are North-South Central Link (ELITE), South Klang Valley Expressway (SKVE), KL – Seremban Highway (NS Highway), Leburaya Damansara Puchong (LDP) & B15 State Highway.
In terms of office space, Cyberview said the company was looking to develop 8.04 million sq ft by this year-end from the previous five million sq ft target due to growing demand from MNCs and MSC-Status companies, which now prefer to own rather than rent properties in Cyberjaya. With the increase in office space and population, a rise in demand for residential units is foreseen.
“Over 2,900 residential units have been completed, with another 2,300 in the pipeline, including the Garden Residence by Mah Sing Group Bhd and Symphony Hills by UEM Land Bhd,” the Cyberview GM said.
Tipping Point in Horizon
Despite these encouraging developments, the tipping point may be a few years from now, according to a prominent real estate consultant. In order to truly realize the dream of becoming the Silicon Valley of Malaysia, a lot depends on the Government Transformation Programme. “Change has to come from the Government, civil servants and politicians [and not merely from developers],” said the KL-based consultant.
Another consultant, Brian Koh, executive director of DTZ Nawawi Tie Leung Property Consultants Sdn Bhd said, “More needs to be done but this is always a chicken and egg situation. The master developer will need to attract other third party developers who can add value, in terms of different types of developments, and accelerate pace of sales – ultimately ensure that the population base can support the various facilities. More developers will mean more competition, bringing down price but this may not happen as the master developer needs to sell prices as high as they can get.
“At the moment, we are seeing more high-end developments from Mah Sing and UEM which have been well received, this implies future launches will see price increases!”
In conclusion, it can be foreseen that the price per sq ft there will see a further uptrend. With prices of properties escalating across the Klang Valley, Cyberjaya, as an alternative, might just see a revival – the sort that some developers have already anticipated. A boom-in-waiting perhaps, but one that would probably be a few years down the road.
Ikhasas Sdn Bhd - Shaftsbury Square Located on 13-acre of freehold land, the development consists of three office tower blocks, two blocks of luxury SOHO/serviced apartments and 145 units of high-end retail shop-lots, with a GDV of RM790 million
Master Developer’s Task
Setia Haruman, as Master Developer of Cyberjaya, was entrusted with the role to plan, design and prepare the primary infrastructure for the Cyberjaya Flagship Zone (CFZ), as well as marketing and selling of land parcels and other real estate developments. To date, it has completed many projects such as the Cyberjaya City Command Centre (CCC), Cyberjaya Smart School Complex including SK Cyberjaya and SMK Cyberjaya, the Cyberjaya Police Station and most recently the new office for the IT Department Headquarters of Road Transport Department of Malaysia.
It has also launched CBD Perdana retail and shop offices as well as mansion plots for those who want their private luxury enclave within Cyberjaya.
Mah Sing Group Berhad has recently acquired 3 new landbanks with a combined gross development value (GDV) of approximately RM1.1 billion. This brings the amount of new project acquisitions to RM1.9 billion in 2010 and RM2.2 billion in 2009.
Located at the Klang Valley, the new lands are Kinrara Residence (Residential with GDV RM730 million), Star Avenue (Commercial with GDV RM280 million) and i-Parc 3 @ Bukit Jelutong (Industrial with GDV RM82 million).
Together with these recent acquisitions, the group has projects with remaining GDV and unbilled sales of RM7.5 billion, out of which 59% is made up of residential projects while commercial and industrial projects make up 36% and 5% respectively. The lands are strategically located in the Klang Valley, Penang island and Johor Bahru.
Commenting on the acquisitions, Mah Sing’s Group Managing Director cum Group Chief Executive Tan Sri Dato’ Sri Leong Hoy Kum said, “We are building our pipeline for 2011 and beyond, as we have enough projects to launch and sell this year. We have the capacity and are always on the look-out to purchase good, sizable landbanks at prime locations. We do not have a set target on our land acquisitions for the year as we are very careful in our selection with our set of criteria such as excellent accessibility via network of roads and highways, good amenities, and a ready catchment.”
He added that these landbanks should last the Group for at least 6 years.
Mah Sing Group was recently awarded the company with the Highest Compound Returns to Shareholders over 3 years during the inaugural The Edge Billion Ringgit Club awards.
Mah Sing via its wholly-owned subsidiary Grand Prestige Development Sdn Bhd recently signed a joint-venture agreement with Mahajaya Berhad's subsidiary Medan Damai Sdn Bhd for the development of approximately 13.2 acres of land in Kinrara. As the developer, Mah Sing intends to rebrand the on-going mixed development known as Taman Damai Utama into a Residence Development boasting lush greenery and trend-setting layouts in a gated and guarded environment.
The land, owned by Medan Damai is a matured development with more than 600 units of 2 and 2 ½ storey terrace houses already sold and handed over. The commercial portion comprising more than 100 units of terrace shop and offices are also fully sold except for the bumiputra units.
"This is an opportune joint venture for Mah Sing to replicate our success in Perdana Residence 2 in Selayang and Garden Residence in Cyberjaya where we saw very good sales due to the good location, strong concept and value proposition backed by our Mah Sing brand," said Mah Sing Group Berhad's Group Managing Director cum Group Chief Executive Tan Sri Dato' Sri Leong Hoy Kum.
Launched in April 2010, 53 units of the 180 units of terrace houses have been sold to date. The land has a gross development value of RM100 million.
The Icon Jalan Tun Razak, KL – Unforgetable Landmark
The Icon Jalan Tun Razak is a 21-storey Grade A office development conceptualized by world renowned architects. As its name suggests, it is located along Jalan Tun Razak, just south off Jalan Ampang in the vicinity of Kuala Lumpur City Centre. It is within the neighborhood of Embassy Row and is in the heart of the shopping and business district of Kuala Lumpur.
Few other office developments can boast amazing views of both the KLCC Twin Towers and the Royal Selangor Golf Club nearby. Surrounded by established amenities including private specialist hospitals, parks, and established schools and colleges, it truly is a first class building in a first class location.
Comprising of two wings, East and West, it has 15 levels of office spaces of approximately 15,000 sq ft per level per wing. There is a common area in Level 5 where the cafeteria, gymnasium and a business centre are situated. A café and restaurant area and a Banking Hall are also available on the ground and mezzanine level.
There are 4 levels of basement car parks and 3 levels of elevated car parks making up a total of 605 car parking bays on a gross floor area of 534,858 sq.ft. As a Grade A development, the Icon Jalan Tun Razak enjoys 24/7 three-tier security system.
It has Variable Refrigerant Flow air conditioning system which provides flexible control to different zones. On top of that, the building is designed as disabled-friendly.
Not surprisingly, the Mah Sing Group project has been fully sold out and there will be no more future launches. More tellingly, the completed building has recently won the highly commended ‘Best Office Development Malaysia’ organized by Asia Pacific Commercial Property Awards in association with Bloomberg Television.
Mah Sing’s first office building
As the Icon is their first completed commercial Grade A building, it was greatly encouraged by the award. Says Mah Sing’s chief operating officer, Andy Chua: “This is a very encouraging recognition for Mah Sing’s venture into commercial development. Being awarded at the regional level and to represent Malaysia reaffirms the company’s status as a premier lifestyle developer.”
“We believe that a company’s culture, success and values are reflected in the image conveyed to potential clients, and our award-winning ICON will create a distinctive identity and prestigious image for the building’s tenants.”
The building architecture is one that few will forget as the wave-shaped and sail-like features etch an indelible mark on one’s memory. In other words, its dramatic design stands out in the crowded office environment within the KLCC precinct. According to the COO, the wave shape metaphorically represents waves of business opportunities that would flow into the companies residing in the building.
Further, Chua believes that the Icon Jalan Tun Razak is the first and currently the only office building in Malaysia to be accorded the stringent CONQUAS award. CONQUAS is widely recognized and accepted internationally as a benchmarking tool for quality. Countries like the UK and Hong Kong have successfully adapted CONQUAS to their construction industries. CONQUAS is also used in Singapore, China, Australia, South Africa and India.
Since its inception in 1965, Mah Sing Group Berhad has achieved recognition as an innovative developer of niche products and trend-setting townships. Set in prime locations, their developments in the Klang Valley and Johor Bahru have cemented their position as Malaysia’s premier lifestyle developer. Their projects are showcases of contemporary lifestyle statements. Grand entrances, lush landscaping, and practical yet functional homes with quality finishes within a guarded and gated environment are all hallmarks of Mah Sing’s developments.
Dubbed “The Island’s Secret Garden”, Legenda@Southbay is a luxurious freehold development consisting of 3 & 4-storey resort bungalows in a gated and guarded community catering exclusively to the discerning few.
Going home through a quiet countryside road up a meandering hill. Much of the environment is green, quiet and secluded with hidden treasures of nature. The 76 units of exclusive bungalows are perched on the hill overseeing the magnificent views of the city and forest.
Inspired by the traditional Asian values of 3 generations, the clever layouts and built-up areas are ranging from a princely 6,400 sq ft. These homes give the residents abundance of space to entertain yet provide intimacy for those solitary and priceless moments. Every home comes with a spacious car porch for at least 4 cars, a personal pool and a private lift as an added convenience especially for the elderly.
As one of the components of the new award-winning metropolis in the South of Penang Island – Southbay, Legenda@Southbay is complemented by the mega city development which is conceptualized on the premise that you will live, work and relax amidst a vibrant residential and commercial hub. Recently, the township has been awarded the Best Waterfront Development (Future) at 2010 Cityscape Asia Real Estate Awards.
Imagine cafés and restaurants by the sea, offices and residential suites that overlook the majestic Second Link Bridge (expected completion in 2013), luxury hotels, lifestyle mall and retail, entertainment and recreational district that ignite from the first day of light, and deep into the night. It is time to start living pricelessly.
Located in the vicinity of the Second Link Bridge, it is easily accessible via Penang Bridge, Coastal Highway and Penang International Airport. The township is a stone’s throw away from the lifestyle mall – Queensbay Mall; while the Tesco and Giant hypermarkets are located close by. It also enjoys easy access to healthcare facilities including Pantai Mutiara Hospital and Lam Wah Ee Hospital as well as educational facilities such as Universiti Sains Malaysia and INTI International College.
Best Architecture Award
As one of its flagship developments in Penang, the developer, Mah Sing Group Berhad, has taken utmost care with every detail of the construction, particularly its architectural design. With the Mah Sing stamp on it, you can expect some of the finest and most eye-catching designs ever seen on the Island. Not surprisingly, Legenda@Southbay has clinched nothing less than the Best Architecture Malaysia (Multiple Units) award at the recent Asia Pacific Residential Property Awards 2010 in association with Bloomberg Television.
Speaking after the award ceremony, Mah Sing Group’s Managing Director & Group Chief Executive, Tan Sri Dato’ Sri Leong Hoy Kum said: “Being awarded at a regional level and to represent Malaysia & the Asia Pacific region on the global stage reaffirms our status as a premier lifestyle developer. It is indeed an honour to be recognised for what we do but more importantly it is testament to the talent & passion of our entire organization which is committed to delivering innovative concepts, high quality & exceptional service.” He added that inspiration for the designs comes from boutique developments around the region.
Premier Lifestyle Developer
Listed on the Main Board of Bursa Malaysia, Mah Sing Group is Malaysia’s premier lifestyle developer with trendy, quality properties in prime & strategic locations. With 16 years of property development expertise, Mah Sing is a fully integrated developer of residential, commercial and industrial projects. The Group’s projects in Malaysia are focused in the property hotspots of Kuala Lumpur, Klang Valley, Penang Island and Johor Bahru.
The Group continues to garner global and domestic awards in recognition of their achievements. Last year, they won a total of eight awards, which acknowledged their innovation, excellent customer service and high-quality offerings.
Interestingly, for the second year running, the Group was voted the Best Developer by the prestigious Euromoney Real Estate Awards. It was also named the Best Brand in the Property Category of the Brand Laureate Awards for two consecutive years which acknowledged the Group’s branding efforts.
Malaysian developers are making giant strides at the prestigious award, a testimony of the fine craftsmanship of some of our property projects
SIX Malaysian developers made the country proud when they took home awards at the prestigious Asia Pacific Property Awards for various regional categories recently. The winners were Mah Sing Group Bhd which clinched 4 awards; and Naza TTDI with 2 awards. The other three were Sunrise Bhd, Pavilion Kuala Lumpur and Dijaya Corp Bhd.
Also sharing the podium were a real estate agency, Zerin Properties which clinched three awards and a Singapore-based architecture firm which won for its design of the stunning G Hotel in Penang.
A first for a Malaysian company
Among the winners, Mah Sing Group came up tops with 4 awards including the much sought-after Best Residential Property Asia Pacific award for its One Legenda bungalows in Cheras, Selangor. It is a rare accolade indeed with Mah Sing being the first Malaysian company to be internationally nominated for the Best Property category. Its Legenda@Southbay in Penang fared no less, having clinched the Best Architecture Malaysia award.
Not to be outdone, its wave-shaped office building The Icon Jalan Tun Razak was highly commended in the Best Office Development category. The awards have reaffirmed Mah Sing’s status as a premier lifestyle developer committed to delivering innovative concepts, high quality and exceptional service, its group managing director and group chief executive officer, Tan Sri Leong Hoy Kum said.
Another runaway winner was Naza TTDI which garnered 2 awards. The two awards were for Laman Seri Business Park as the Best Office Development under the Commercial category and The Valley TTDI Ampang as the Best Architecture (Multiple Residences) under the Residential category. Last year, in its maiden participation in Singapore, Naza TTDI won for Best Residential Apartment and Best Development Website.
Its senior general manager (Marketing & Sales and Quality Assurance), Myrzela Sabtu said that the awards received for two consecutive years further reinforce the TTDI brand internationally after making its mark in the property sector for over 35 years.
Beating regional competitors
Meanwhile, Sunrise Bhd's 28 Mont’Kiara project beat other regional competitors to come out tops as the "Best Residential High-Rise Development Asia Pacific". Not surprisingly, the hugely popular Pavilion Kuala Lumpur, which was named the best retail development in Malaysia, also won the architecture award for the retail category in the Asia Pacific. The best golf development in the Asia Pacific went to Dijaya Corp Bhd's Tropicana Golf & Country Resort.
The sole real estate agency winner, Zerin Properties took home three awards after it was named the best commercial property marketing consultancy in Malaysia and the Asia Pacific, besides being the best residential real estate agency in Malaysia.
For the Best Mixed Use Development Malaysia, both Titijaya Group and Ivory Properties Group won for their innovative Subang SoHo and Penang Times Square projects respectively.
The Asia Pacific Property Awards is held in association with Bloomberg Television and is part of the International Property Awards to identify the best real estate professionals across the globe. Hundreds of property-related firms from over 56 countries are evaluated by a panel of experienced real estate and Internet experts.
Later this year, winners from Asia Pacific will compete against other regional winners to take the crown for the World’s best in each of the 21 categories.
Malaysian winners at both Malaysia and Asia Pacific levels
Sing’s latest Selayang project draws more than 500 visitors
Mah Sing Group Berhad’s Perdana Residence 2
project was previewed to more than 500 registered visitors during its preview of
its show houses on 13 March.
Perdana Residence 2 comprises 268 units of three-storey
superlink homes with land sizes 22ft/24ft x 80ft. Built up sizes of the homes
are 3,182 sq ft and 3,400 sq ft and units are priced RM868,800 onwards for
intermediate units. Every home has six bedrooms, two utility rooms, a wet and
dry kitchen and a smart home alarm system.
Located in Selayang, Perdana Residence 2
show units are now open to the public from 10am to 5pm daily.
Mah Sing Group Berhad through its wholly-owned
subsidiary Myvilla Development Sdn Bhd has signed a Sale and Purchase Agreement
with Cyberview Sdn Bhd and Setia Haruman Sdn Bhd to purchase land in Cyberjaya.
A total of RM21.74 million is offered for the 6.32
acre of the freehold commercial plot which is adjacent to Mah Sing Group’s
115.25 acre Garden Residence project.
According to a Bursa Malaysia statement by Mah Sing
Group, the acquisition will allow the group to plan complementary commercial
products including service apartments and retail units which will allow the
group to enhance the overall appeal of Garden Residence.
It added, “Due to the strategic location of the
adjacent land being directly opposite Lim Kok Wing University as well as
proximity to several other reputable institutions of higher learning, there is
a captive market of lecturers and students for the project. Furthermore, there
are more than 500 multinational and local companies operating in Cyberjaya,
providing additional catchment of professionals for the project.”
Multi Synergy Group Sdn Bhd, a wholly owned subsidiary
of Mah Sing Group Berhad entered into a Sale and Purchase Agreement (SPA) to
purchase 19.18 acres of freehold industrial land in Hicom Industrial Estate,
Shah Alam for RM45.5 million from Quill Properties Sdn Bhd.
The land will be developed into an industrial
development named iParc 2 @ Shah Alam which will have an estimated gross
development value of RM143 million. Early indication shows that the project
will offer three-storey semi-detached factories with layout flexibility options
priced from RM2.5 million. Built-up for the smaller units will be 5,400 sq ft.
Mah Sing Group Berhad group managing director cum
group chief executive Tan Sri Dato’ Sri Leong Hoy Kum said, “Since the launch
of iParc@Bukit Jelutong in January, we have seen overwhelming response as we
have sold 40 units out of a total 42 units. That leaves only 2 units which is
why this acquisition is timely and strategic as we would like to cater to the
pent up demand for this product.”
With iParc 2 @ Shah Alam adds to Mah Sing Group’s
remaining gross development value and unbilled sales of RM5.8 billion in the Klang
Valley, Penang island and Johor Bahru.
Klassik Tropika Sdn Bhd, a wholly owned subsidiary of
Mah Sing Group Berhad has acquired 3.38 acres of freehold land along Pykett
Avenue off Jalan Burma, Penang for RM38.65 million. A high end condominium with
an estimated gross development value of RM280 million is planned for the new
Based on preliminary plans, the condominium will offer
units of 1,400 sq ft, 1,800 sq ft and 2,500 sq ft and registration of interest
for the project is expected to start soon.
Mah Sing Group Berhad group managing director and
group chief executive Tan Sri Dato’ Sri Leong Hoy Kum said, “The location of
the land is perfect for an up market residential project, and we will develop a
beautiful condominium to capitalize on the sea view on the Northeast. There is
also a scenic view of mountains at the Southwest direction. While just outside
Georgetown’s heritage site, it still enjoys a good view of the bustling town.”
According to the press release, it said that the acquisition
is strategic as it allows the group to tap on the success and spillover demand
of Mah Sing’s Residence@Southbay project in Batu Maung which launched phases
are 90 percent sold.
Mah Sing Group Berhad made their first move into
property development overseas via its wholly owned subsidiary Mah Sing
International (HK) Limited which signed a letter of intent with Wujin District
People’s Government to develop a mixed property development project in Wujin
district, Changzhou, Jiangsu province in China.
Its subsidiary intends to enter a joint venture with
DanLong Realty (Beijing) Co Ltd to jointly develop 87.31 acres of land located
along Wuyi Road. The mixed development comprises medium to high end residential
and commercial components with an estimated investment cost of USD620 million.
The joint venture company will also have an option to
develop additional 53.13 acres land located north of Wujin High-New Zone of
Zhangzhou City as well as 82.37 acres at the north intersection of Wunan Road
and Wuyi Road, Ming Hung town, Wujin District, Changzhou City.
DanLong’s president Xue Yong Zhe said, “Mah Sing is
Malaysia’s premier lifestyle developer widely recognized for its branding,
performance track record and execution capabilities. We are excited by this
joint venture since the two companies share a common vision to create quality and
sustainable real estate developments in Wujin. We searched for partners who
could bring the right combination of experience and creativity to develop such
a landmark development in our city, and we found that Mah Sing’s track record
and various international accolades meant that the company had vast experience
in executing similar world class real estate developments.”
Mah Sing’s group managing director cum group chief executive
Tan Sri Dato’ Sri Leong Hoy Kum said, “DanLong is a partner with good local
knowledge and a strong network, and this joint venture paves the way for Mah
Sing to establish a long term strategic relationship to grow our presence in
China. We are confident of creating an outstanding development providing unique
lifestyle experiences which will transform the way people live, work and play
Mah Sing will hold a 51 percent stake of the joint
venture while DanLong Realty will hold the remaining 49 percent interest. The
registered capital of the joint venture company is a total USD80 million.
Mah Sing Group Berhad announced a double acquisition done via its subsidiaries it said in a press release dated 28 October 2009.
The first acquisition is 26 acres of freehold land in Selayang for a total cash consideration of RM41.65 million. The land is located 2km from the group’s Perdana Residence development and will be developed into a RM209 million gross development value (GDV) gated and guarded residential development to be named Perdana Residence 2 and comprising mainly super link homes.
Mah Sing said in the press release that the acquisition is strategic as Perdana Residence saw 10 times oversubscription of interest and had capital appreciation of approximately 15 to 20 percent for secondary transactions since its completion in mid 2008.
The second acquisition involves 19.6 acres of freehold land in Petaling Jaya for a total cash consideration of RM89 million. A sales and purchase agreement has been entered with Panasonic HA Air-Conditioning (M) Sdn Bhd for the land situated at the crossroads of Lebuhraya Damansara-Puchong (LDP) and the Federal Highway.
Mah Sing plans to develop the land into a mixed commercial development comprising of shop offices, semi-detached offices, SOHO and retail units. The entire project will be developed over five years and has a GDV of RM838 million. According to the press release, the development will incorporate green concepts such as airflow and energy management as well as sustainability which will increase the environmental friendliness of the project.
The acquisitions was announced on the back of a RM23.5 million third quarter profit against RM16.5 million for the previous year corresponding period.
Mah Sing’s group managing director cum group chief executive Tan Sri Dato’ Sri Leong Hoy Kum said, “We have overshot our full year sales target by approximately 1.4 times, achieving RM615million for the first 3 quarters of 2009 against our full year sales target of RM453million. We believe that the property market is gaining momentum for a likely up cycle in the second half of 2010, and have planned ahead to meet the coming demand with several land acquisitions. Today, we signed up two pieces of prime land in the matured townships of Selayang and Petaling Jaya which can yield an estimated total gross development value of RM1.05billion.”
“At 42.3 percent, Malaysia has the third highest savings rate in the region, and this liquidity coupled with low returns on fixed deposit rates has made property an attractive investment. Affordability is improved due to benign interest rates which are expected to remain low to support economic growth. The new scheme allowing further draw downs from EPF Account 2 to finance first house purchase will further increase affordability as it enables buyers to obtain higher financing for their properties. There is still stable employment, with increases in wages and re-hiring especially in the manufacturing sector, as well as improvement in both consumer and business conditions indices in 2Q09. All these should result in sustained or improved property demand in the coming months in anticipation of asset reflation as our properties are still among the cheapest in the region,” said Tan Sri Dato’ Sri Leong.
The government’s move to promoting green technology that extends incentives to green technology suppliers, developers and home buyers brings about positive news to Mah Sing Group.
Tan Sri Dato’ Leong Hoy Kum, group managing director, Mah Sing Group Berhad, said in a press release dated 23 October 2009, “We are already incorporating eco-friendly features in our properties and the tax rebate equivalent to the cost of obtaining Green Building Index (GBI) certification is a big incentive for us to obtain the certification.House buyers who buy GBI certified properties will also enjoy stamp duty waivers, and we believe this will further increase the demand for environmentally friendly projects in Malaysia.”
A new scheme enabling EPF contributors to use current and future savings in Account 2 is seen to increase affordability as buyers will be able to obtain higher financing for their properties. “We believe we shall see significant increase in take up for our medium to high-end homes in our Legenda, Residence and Perdana series, as many of our target buyers are active contributors to the EPF,” said Leong.
“The Government has been proactive in providing a conducive and streamlined business environment, and we are very pleased that local authorities will now expedite the issuance of Development Orders. The success of the Mah Sing’s business strategy rest upon the Group’s ability to effect a fast-turnaround for our projects and offer properties which meet market needs.This news is certainly a big positive for our business operations,” Leong summarised.
Mah Sing Group Berhad has won the ‘Best Developer’ title in the Euromoney Real Estate Awards 2009 for the second year running.
Mah Sing’s group managing director and group chief executive Tan Sri Dato’ Sri Leong Hoy Kum said, “We are gratified to win the award for the second year running as voted by a team of peers and other professionals.”
He added, “We are more than happy that our efforts have been recognized and I would like to attribute our success today to all our team members who are dedicated, skilled and loyal professionals who helped to accelerate the success of the Group. Despite the challenging external environment, the Group managed to bag international and local awards, overshot its full year sales target by 1.2 times, achieving RM543 million sales in just seven and a half months and went ahead with land acquisitions as the Group is growth minded and here for the long term. In addition, the Group also has a reputation for creativity, timely delivery of products and a constant quality of service that our customers can always count on”.
Mah Sing Group Bhd announced on 15 June 2009 that they have acquired a piece of freehold land in Johor Bahru measuring 5.7 acres for RM2 million. This works up to about RM8 per sq ft.
The newly acquired land is next to Sri Pulai Perdana 2 in Skudai, Mah Sing’s latest lifestyle township in Iskandar Malaysia. It is anticipated that the land will allow Mah Sing to enhance overall development planning in the area.
“Johor Bahru in Iskandar Malaysia continues to be a key market for us, besides Kuala Lumpur, Klang Valley and Penang island.” Said Mah Sing’s Group Managing Director cum Group Chief Executive Office Tan Sri Dato’ Sri Leong Hoy Kum.
As the result of this land acquisition, Sri Pulai Perdana 2’s land size and gross development value is increased to approximately 72 acres and RM225 million respectively.
Sri Pulai Perdana 2 is a gated and guarded freehold project located in Johor Bahru, Malaysia. Launched in February 2009, the development features modern link homes, super link homes, link semi-detached homes and shop offices.
Promoting community living, Sri Pulai Perdana 2 features a clubhouse and children’s playgrounds for residents. Clubhouse facilities include swimming pools, a gymnasium and barbeque pits. The development is just 10 minutes away from University Teknologi Malaysia, UTM Technovation Park and Johor Technology Park. It is also reportedly close to shopping amenities.