KUALA LUMPUR (Jan 31): Mah Sing Group Bhd plans to purchase 185 acres of land in Sepang for RM100.72 million as it plans the development of an industrial development called Mah Sing Business Park, which may potentially span 561.65 acres, with a gross development value (GDV) of up to RM2 billion.

According to a bourse filing on Wednesday, a conditional sale and purchase agreement was inked for the 185-acre land to be purchased from Premier Land Resources Sdn Bhd (PLR) at RM12.50 per sq ft by Fusion Heights Development Sdn Bhd (FHD), a wholly owned unit of its 70%-owned joint venture (JV) Mah Sing South Sea Industrial Development Sdn Bhd (MSSSID).

The planned industrial development on the 185-acre land has an estimated GDV of RM728 million, according to Mah Sing. The other 30% in MSSSID is owned by The South Sea Capital Sdn Bhd.

The deal also carried an option for FHD to purchase a further 376.65 acres at the same fixed price point within a four-year period.

Based on back-of-the-envelope calculations, the overall 561.65 acres would cost Mah Sing RM305.82 million.

Mah Sing said it did not carry out a valuation exercise on the land given its knowledge of the market value of surrounding land.

“Based on the company’s internal assessment, the purchase consideration is within the range of acceptable land costs given the potential GDV to be generated,” it added.

In conjunction, MSSSID inked a shareholders’ agreement for PLR to subscribe to a 20% stake in FHD.

“The landowner’s (PLR) participation as a shareholder adds credibility and confidence to the success of Mah Sing Business Park, Sepang,” Mah Sing said in a separate statement.

Based on direct shareholding of PLR provided by Mah Sing’s filing, the land owner is 42%-owned by See Hong Chen & Sons Sdn Bhd, while the other 58% is held by 17 other shareholders.

The other PLR shareholders listed were Charming Empire Sdn Bhd, Chee Chi Vun & Brothers Sdn Bhd, Chee Nyun Jin, Everyday Logistics Sdn Bhd, Fabulous Progress Sdn Bhd, Fung Tak Kan, Lee Yew Realty Sdn Bhd, Leong Nyuk Onn, Mohamad Izwan Azman, Muhammad Lazis, NKG Assets Sdn Bhd, Nor Aqmal Salehudin, See Cherng Jye, See Fong Seng, See Hong Toh, Tan Soon Chai & Sons Sdn Bhd and Tan Tian Peng & Sons Sdn Bhd.

The Mah Sing Business Park, which is to be developed by FHD, is planned to be an industrial development comprising customised factories, industrial lots, cluster, semi-detached and detached factories catering to medium and light industrial businesses.

“The development is set to attract industry players from high-tech manufacturing and value creation manufacturing to set up their facilities here,” it added. The group noted that the land is situated in the Integrated Development Region in South Selangor (IDRISS), a Selangor state government-supported development region.

Subject to authorities’ approval, Mah Sing said the industrial park’s development is expected to commence in the second half of 2024 and take three to four years to complete.

Mah Sing shares closed half a sen or 0.53% higher at 94 sen, giving the group a market capitalisation of RM2.28 billion.