KUALA LUMPUR (Jan 31): Mah Sing Group Bhd will be developing 185 acres “prime industrial development” named Mah Sing Business Park, Sepang with an estimated gross development value (GDV) of approximately RM728 million.
Mah Sing Business Park will be developed by Fusion Heights Development Sdn Bhd, a subsidiary of Mah Sing South Sea Industrial Development Sdn Bhd (MSSSID), a 70%-owned subsidiary of Mah Sing, stated the latter in a media release.
The landowner Premier Land Resources Sdn Bhd has also granted Fusion Heights Development the option to purchase an additional approximately 376.65 acres (Option Land) for RM12.50 psf within four years of the Sale and Purchase Agreement (SPA). The potential GDV for the entire 561.65 acres is up to RM2 billion, encompassing comparable development components.
Fusion Heights Development, MSSSID and the landowner plan to enter into a shareholders’ agreement for the subscription by the landowner of 20% of the shareholding in Fusion Heights Development (equivalent to 500,002 ordinary shares).
The landowner’s participation as a shareholder adds credibility and confidence to the success of Mah Sing Business Park, Sepang. “The staggered investment structure with the initial purchase of 185 acres with option for the remaining 376.65 acres within four years, along with the upfront locking of the fixed cost of RM12.50 psf, helps mitigates risk. It also creates growth opportunities without placing excessive pressure on the balance sheets and liquidity,” stated Mah Sing.
The planned industrial development will comprise customized factories, industrial lots, cluster, semi-D and detached factories catering to medium and light industrial businesses. It will attract industry players from high-tech manufacturing and value creation manufacturing sector to set up their facilities here.
“In line with the Group’s quick turnaround strategy and subject to authorities’ approval, the development of Mah Sing Business Park, Sepang is expected to commence in the second half of 2024 and to be developed over a span of three to four years. The acquisition will fuel the growth of Mah Sing’s industrial development portfolio and strengthen its competitiveness in Malaysia’s industrial development landscape,” stated Mah Sing.
The land has good connectivity to air transportation, situated just 10km from Kuala Lumpur International Airport (KLIA. Logistics hubs such as Cainiao Warehouse by Alibaba Group, Pos Aviation E Commerce Hub and DHL Global Forwarding are located at the same area. It also near ports — 65km to West Port and 75km to North Port.
The land is also strategically located in the Integrated Development Region in South Selangor (IDRISS) zone, an initiative under the First Selangor Plan 2021-2025. With an estimated GDV of RM1 trillion, IDRISS is Selangor’s strategic blueprint aimed to boost economic developments in Sepang and Kuala Langat districts.
“It is within Malaysia’s favourable environment we make this strategic acquisition, as we strongly believe Malaysia and Mah Sing is the preferred country and partner for these enterprises looking to efficiently invest and grow across this region,” said Mah Sing’s founder and group managing director, Tan Sri Leong Hoy Kum.
“We intend to build a world class Mah Sing Business Park offering customized factories as well as industrial lots, cluster, semi-D and detached factories. Drawing upon our 30 years of successful experience in property development and over 40 of manufacturing expertise and partnerships with numerous Fortune 500 clients, we are well-positioned to utilise our networks and resources, providing a holistic, all-in-one solution for investors seeking to establish manufacturing facilities in Malaysia,” he added.
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Source: EdgeProp.my
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