Mah Sing eyes more land, JV deals

Mah Sing eyes more land, JV deals

KUALA LUMPUR, 17 June: Mah Sing Group Bhd, armed with a cash pile of RM1.1 billion, is looking for more land acquisitions and joint venture deals in Greater KL, Klang Valley, Iskandar Malaysia, Penang, as well as states with strong economic prospects.

“Right now, during this (economic) downturn, is a very good time to identify new opportunities,” its group managing director Tan Sri Leong Hoy Kum told reporters at a press conference after its AGM yesterday.

Currently, Mah Sing has a remaining landbank of 2,522 acres in the Klang Valley, Iskandar Malaysia, Penang and Sabah, with a total gross development value (GDV) and unbilled sales of RM32.26 billion that could last for potentially eight to nine years.

Leong added that the group also had billings amounting to about RM474 million for properties to be completed this year, with a net gearing of 0.09 times as of March 31, 2016.

On the property market outlook, he said the market is currently undergoing a consolidation period, adding that demand is still strong for the mass-market in well-located areas.

“Many are expecting the market will pick up in the second half of this year,” Leong said.

On its RM2.3 billion sales target this year, he said the group is on track to achieve the target with more launches in the second half of the year.

“We have the right product mix that is catered to the current market’s needs. We expect our upcoming launches this year to further add to our sales target,” Leong noted.

He added the group achieved property sales of RM536 million up to April 30, 2016, despite a shorter working period due to festive seasons in the first quarter.

Leong said he believes the interest in the group’s properties is underpinned by its affordable homes focused within the Klang Valley. He said 89% of its planned residential launches are priced below RM1 million, 68% priced below RM700,000 and 50% priced below RM500,000.

At the AGM earlier, shareholders approved its first and final single-tier dividend of 6.5 sen per ordinary share of 50 sen each for the financial year ended Dec 31, 2015, which translates to an attractive dividend yield of about 4.5%.

— THE SUN

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