Mah Sing Acquires Prime Johor Land for RM463 Million M Tiara 3 Project
Mah Sing Group Bhd (KL:MAHSING) is set to further expand its footprint in Johor Bahru with the acquisition of 59.12 acres of prime freehold land in the Pulai district. The land, purchased for RM62.98 million, will be developed into a township named M Tiara 3, featuring spacious super-linked homes with an estimated gross development value (GDV) of RM463 million.
Strategic Land Acquisition
The acquisition was facilitated by Mah Sing’s wholly owned subsidiary, Loyal Sierra Development Sdn Bhd, through sale and purchase agreements with Hau Enterprise Sdn Bhd and its shareholders.
“The township will feature super-linked homes priced from RM780,000, marking a continuation of the successful M Tiara 2 development,” said Mah Sing in its announcement.
This marks Mah Sing’s fifth land acquisition in 2024 and the third in Pulai, following its purchases for M Tiara 2 (100.4 acres) in April and M Tiara (75.7 acres) in June 2023.
Strong Financial Backing
The acquisition will be financed through internally generated funds and bank borrowings, demonstrating Mah Sing’s robust financial position. As of September 2024:
- Cash and bank balances: RM747.43 million
- Borrowings: RM1.60 billion
The acquisition is expected to be completed in the first half of 2025.
High Demand for M Tiara Projects
Both M Tiara 1 and 2 have garnered significant interest, with over 14,000 registrations and a 100% take-up rate for international lots.
“The new M Tiara 3 project is strategically positioned to leverage the strong demand in the region, further boosted by transformative projects like the Johor-Singapore Rapid Transit System (RTS) and the Johor-Singapore Special Economic Zone,” Mah Sing noted.
Development Plans
The township will include spacious super-linked homes, reflecting Mah Sing’s focus on creating modern, family-friendly living spaces. While development costs and expected profits are still being ascertained, the company has committed to submitting the proposed plans for approval to relevant authorities.
Positive Impact on Future Earnings
Mah Sing expects the M Tiara 3 project to:
- Contribute positively to future earnings.
- Enhance net assets of the group.
This aligns with Mah Sing’s broader strategy to capitalize on Johor Bahru’s thriving real estate market and infrastructure growth.
Conclusion
The acquisition of land for M Tiara 3 reinforces Mah Sing Group’s leadership in Johor Bahru’s property market. With strong demand for the M Tiara series and the region’s growing infrastructure, the project is poised for success.