- Maintain BUY on Mah Sing Group at an unchanged fair value of RM3.60/share. We attended a preview of Avens Residence, which kicks off Phase 2 of SouthVille City.

- Avens consists of 196 units of freehold, garden linkedhomes (22’ x 75’); the only linked-home precinct within the 428-acre Southville project. The indicative GDV of Avens is ~RM200 mil. It comes with two main types: (i) 2 ½ storeylink (2,988 sf ): from ~RM893k to RM1.1mil); and (ii) 3 storey-link (3,438 sf): from ~RM1mil to RM1.2mil).

- The initial response to Avens was encouraging, with an 80% take-up rate achieved for the first 80 units that were previewed (~RM61mil). The sales momentum for the remaining units should be equally robust, we believe.

- The entry point for Avens appears fairly attractive at a tad below RM300 psf for low-density units. Landed homes in Kinrara and Bukit Jalil are approaching RM500psf and RM500psf-RM600psf, respectively.

- Similarly, Mah Sing has already locked-in RM600mil from Phase 1 of Southville. Over 1,000 units of Savannah Suites have been snapped-up – with > 90% take-up rate for the first four blocks (retail units: 40% sold). The fifth block opened some two months ago.

- Southville’s promising debut underpins Mah Sing’s slick execution that embodies a strong management team, under entrepreneur developer Tan Sri Leong Hoy Kum.

- Poignantly, SouthVille (30 minutes or 25km from KL city centre) is on track to morph into a prime residential/commercial hub within the south Klang Valley corridor, where other major developers such as IOI Properties have emerged.

- Accessibility to this new township would be further boosted by the opening of a direct interchange into the

North-South Expressway (NSE). Construction should take 42 months ahead of the expected delivery of Avens (2H17) and Savannah Suites (2018). A private clubhouse has also been mooted to add value.

- We believe SouthVille is strategically positioned to tap into a sizeable upgrader’s market near mature townships (e.g. Serdang, Sg.Besi, Sri Kembangan), as well as those looking for multi-generational homes. Base demand could be further expanded via the opening of KLIA2 and increasing interest from Seremban buyers.

- We see further NAV upside for Southville as its GDV has just been raised from RM5.1bil to RM8.3bil following the approval of it master plan.

Source: AmeSecurities