KUALA LUMPUR: Mah Sing Group Bhd has acquired 78% of Cosmowealth Housing Development Sdn Bhd (Cosmowealth) for RM54.96mil, to be paid over six years.
In a statement, Mah Sing said RM6.56mil was paid upon signing of the agreement, with the balance consideration payable on a deferred payment basis over a period of 72 months.
Cosmowealth has earlier signed a sales and purchase agreement (SPA) to acquire 8.5 acres of prime freehold land in Sentul, fronting Jalan Sentul Pasar, for approximately RM95mil, of which RM6mil has been paid upon the execution of the land SPA. The balance RM89mil shall be paid by Cosmowealth within six months of the land SPA, with an automatic extension of 2 months.
Mah Sing said the land would be developed into M Centura with an estimated gross development value (GDV) of approximately RM1.3bil, targeting first time home buyers and some upgraders due to its value proposition of quality products at affordable pricing in Kuala Lumpur.
The developer said it intend to offer well thought layout and practical units with indicative built up of 650 sq ft, indicatively priced from RM326,000. A choice of bigger units at 850 sq ft and 1,000 sq ft will also be available.
“The acquisition will increase Mah Sing’s prime landbanks to 2,336 acres, with total remaining GDV and unbilled sales of RM32.2bil. This is in line with Mah Sing’s focus to increase its presence in the Klang Valley, especially in the affordable range,” Mah Sing said in the statement.
“With this acquisition, 65% of our landbank is in the Klang Valley, and we target to increase that to 75% within the next two to three years, especially with projects in the affordable range.
“By virtue of its economic dominance, the value and volume of property transactions in the Klang Valley (Kuala Lumpur and Selangor) is by far the highest in the country,” group managing director Tan Sri Leong Hoy Kum said.
“According to the National Property Information Centre (NAPIC), in 2016, the value of property transactions in the Klang Valley itself was RM30.81bil, accounting for nearly half of the RM65.6bil achieved in the whole of Malaysia. By stepping up land acquisitions in the Klang Valley with focus on affordable pricing, we will be better positioned to meet the market demand,” he added.
On a separate development, Mah Sing said it was seeking verification on competing ownership claim on Titiwangsa land.
Earlier, the group’s unit Mah Sing Properties Sdn Bhd had signed a conditional sale and purchase agreement with Saw Shiuo Shyong @ Sonny Saw for the proposed acquisition of five pieces of adjoining freehold land fronting Titiwangsa Lake Gardens.
“We have received a letter dated May 26, 2017 from Messrs Abdullah Chan & Co., Advocates & Solicitors, that there is a competing claim to the rightful ownership of the land, of which we and our legal counsel are in the course of verifying. A further announcement will be made in due course, where applicable,” it said.
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