Mah Sing: New launches to proceed as planned

Developer Mah Sing Group Bhd is taking a bold step in launching new medium to high-end houses and a commercial development worth over RM1.3 billion by 2010.

It currently has 10 ongoing projects in Kuala Lumpur, Penang and Johor on its plate, which will keep it busy for the next five years.

Mah Sing Properties Sdn Bhd chief operating officer Ng Heng Phai believes the market will improve as oil and steel prices appear to be falling.

The global oil price has fallen to about US$92 (RM320) per barrel from US$120 (RM418) more than a month ago while steel is doing RM3,600 per tonne from RM4,100 per tonne some four months earlier.

From now till the end of 2010, Mah Sing will launch four projects - three residential and one commercial. They are Legenda @ Southbay featuring three and four storey resort bungalows and Southbay City, a commercial development, both in Penang; One Residence in Cheras comprising triple-storey bungalows; and Sri Pulai Perdana 2 township in Johor.

"We will go with the launch as they were pre-planned earlier. It will be profitable as we have taken mitigating measures to overcome rising cost of construction," Ng told Business Times.

He said the gross development value (GDV) from the projects will be realised over five to seven years.

"Southbay City, which will command a GDV of RM911 million and located in Batu Maung, will be an exciting project as it will feature two hotels, serviced apartments, shop offices and retails. We target to launch it at the end of 2009," Ng said.

He said Mah Sing will also continue to launch new phases within its 10 developments.

As at June 30 2008, it had a landbank of 232.5ha which will yield a GDV of RM2.9 billion, derived from the new and existing projects.

By Sharen Kaur (Business Times)

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