Monday, July 4, 2022

Mah Sing banks on its RM1.01bil balance sheet and other initiatives to fuel future growth

 By Sharen Kaur -  NST Property, July 1, 2022 

sharen@nst.com.my

Mah Sing Group Bhd has planned vacant possession (VP) of more than 4,000 completed units this year, which will offer a significant cash cushion to support land banking efforts.

According to its founder and group managing director, Tan Sri Leong Hoy Kum, within the first three months of 2023, the VP will begin working for M Vista in Penang.

M Vertica and Southville City's Sensory Residence Phase 1 are upcoming VPs, he said.

Leong said that the high-growth corridors of Seremban, Melaka, and Perak are on the group's radar, in addition to the Klang Valley, Johor, and Penang.

Mah Sing purchased three new lands in Salak Tinggi, Setapak, and Kepong in 2021.

Phase 1 of M Senyum in Salak Tinggi, which consists of 262 double-storey link homes, was completely sold out when it launched in May 2022. M Astra in Setapak and M Nova in Kepong are accepting interest registrations.

Mah Sing has a healthy balance sheet, with roughly RM1.01 billion in short-term fund investments, cash and bank balances, and other assets as of March 31, 2022.

The group has further increased the flexibility of its financial profile by redeeming perpetual and securing fixed-term financing at advantageous rates.

Leong said the group continued to actively pursue land purchases thanks to the strong financial sheet and enthusiastic reaction from homeowners to the M-series of developments.

"We will prioritise lands that can generate returns with turnaround efficiency, with a key focus on affordable apartments in city centres and landed link homes in suburban areas for the M-series, as well as good industrial lands," he said in a statement.

Mah Sing will undertake a 2.8-hectare mixed development called M Minori with an estimated gross development value (GDV) of roughly RM469 million, to be built in Taman Seri Austin, Johor Bahru.

The land was purchased by the developer on June 28 for RM39.3 million, marking its first land transaction of the year.

According to Leong, M Minori will have three blocks of serviced suites featuring 1-, 2-, and 3-bedroom units, with an approximate built-up of between 550 and 880 square feet.

"This is based on preliminary plans for the development and subject to authorities' approval. Registration of interest will begin in the fourth quarter of 2022," he said.

Leong said that the units will be reasonably priced, with a suggested starting price of RM260,000.

The proposed mixed development, he said, will include some retail spaces with plans to support drive-through restaurants and bars.

Today, Mah Sing is launching a new homeownership campaign called H.O.M.E (home ownership made easy).

H.O.M.E aims to address the three primary worries of buyers - saving up for a down payment, loan approval, and making monthly mortgage payments.

"With continuous economic recovery, there is pent-up demand and we are confident that H.O.M.E will provide more sales impetus for our products. Mah Sing is on track to achieve our 2022 sales target of RM2 billion new property sales," Leong said.

Mah Sing locked in about RM450 million in new property sales in the first quarter of 2022, led by the selling of affordable homes.

The group is looking forward to new releases in the second half of 2022 such as M Astra (starting at RM399,000), and M Nova (starting at RM318,000).

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