,CGS-CIMB Research in a report yesterday said it expects the land acquisition to further strengthen Mah Sing’s development portfolio in Johor and competitive positioning in the affordable segment.皇冠球网（www.hg108.vip）是皇冠体育官网线上直营平台。皇冠球网面向亚太地区招募代理，开放皇冠球网代理申请、皇冠球网代理会员开户等业务。皇冠球网可下载皇冠球网APP，皇冠球网APP包括皇冠体育最新代理登录线路、皇冠体育最新会员登录线路。
KUALA LUMPUR: Mah Sing Group Bhd’s acquiring of a land parcel in Johor could be the start of several such deals, given the soft property market.
CGS-CIMB Research in a report yesterday said it expects the land acquisition to further strengthen Mah Sing’s development portfolio in Johor and competitive positioning in the affordable segment.
“We believe the group will likely continue to scout for more land in strategic locations, as there could be good bargains amid a soft property market.”
Property developer Mah Sing announced on Tuesday that it is acquiring 6.9 acres of freehold land in Mukim Tebrau, Johor Baru, for RM39.29mil.
The deal marks the first acquisition for the company this year.
The new acquisition, to be known as M Minori, has an estimated gross development value (GDV) of approximately RM469mil and is planned for a mixed project.
MIDF Research said the land acquisition will allow Mah Sing to expand its presence in Johor.
“The land acquisition is also in line with Mah Sing’s strategy of building affordable homes.
“Indicative selling price is affordable, starting from RM260,000. Meanwhile, land cost to total GDV is attractive at 8.4%.
“Besides, the land acquisition is in line with its turnaround strategy as registration of interest for M Minori is targeted to be in the fourth quarter of 2022.”
MIDF Research added that the acquisition will have a limited impact on Mah Sing’s balance sheet.
“Mah Sing intends to fund the land acquisition in Johor through a combination of internally generated funds and bank borrowings. We expect a muted impact on its balance sheet as Mah Sing has a cash pile of RM1bil as at the first quarter of 2022.
“Meanwhile, earnings impact in the near-term is expected to be minimal as the official launch of the project is expected to take place in 2023. Hence, we make no changes to our earnings forecast for 2022 and 2023.”
Hong Leong Investment Bank Research (HLIB) said it is positive on Mah Sing’s latest acquisition, considering the land’s strategic location.
“The development is strategic as it is situated within a matured township and has well established and good access to amenities and road infrastructure.”
HLIB added that the affordable price range of the units should also be supportive of the take-up rate of the development.
“As a comparison, the group’s previous serviced suites development in 2017 (Meridin BayVue at Taman Sierra Perdana, Johor), comprising 1,200 units and priced between RM300,000 and RM400,000, was fully sold out.”