Mah Sing Group Bhd and Mahajaya Bhd will jointly develop a residential project on a 13.2-acre (5.34ha) parcel of prime residential land in Kinrara, Selangor.
Under the terms of their joint venture agreement, Mahajaya’s subsidiary and the landowner Medan Damai Sdn Bhd will grant Mah Sing’s subsidiary Grand Prestige Development Sdn Bhd exclusive rights to develop the land and sell the residential units in return for an entitlement sum of RM35.4 million to be paid progressively over a 12-month period, said Mah Sing in a statement yesterday.
The JV land forms part of the 274 acres of ongoing residential development that has been started by Medan Damai known as Taman Damai Utama, a matured development with over 600 units of double- and 2½-storey terrace houses sold and handed over. The commercial portion comprising more than 100 units of terrace shop/offices are also fully sold except for the bumiputera units.
The JV land has a remaining lease period of 98 years expiring on Sept 7, 2108. Mah Sing said the JV land had an estimated gross development value of RM100 million, comprising a total of 180 vacant double- and 2½-storey terrace house lots, which were launched in April 2010.
It said to date, 53 units with a sales value of RM29 million had been sold, while bookings for a further 27 units had been received.
“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 managing director and chief executive Tan Sri Leong Hoy Kum.
Mah Sing said the RM35.4 million price tag took into account “the substantial cost and time savings” to the company as the subdivision of the land for residential development and main infrastructiure works had been completed.
“Main infrastructure such as main drain, reservoir, sewage treatment plant and TNB substations have been substantially completed. Main roads leading to the JV land are also completed. Eight units of two- and 2½-storey terrace houses are completed as showhouses. The JV land is cleared and levelled and ready for immediate building construction,” Mah Sing said.
In addition, the landowner has agreed to undertake the low-cost requirement and general requirements for open spaces for the project “which provide an economic advantage for Mah Sing”, the company said.
Written by Loong Tse Min
This article appeared in The Edge Financial Daily, July 6, 2010.
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