Land Acquisition of D’sara Sentral (Sungai Buloh) Mah Sing

Land Acquisition of D’sara Sentral (Sungai Buloh) Mah Sing

According to Bursa Announcement, Intramewah Development Sdn Bhd (“Intramewah” or “Purchaser”), a wholly owned subsidiary of Mah Sing, had on 3 April 2013, entered into a sale and purchase agreement (“Agreement”) with Pulangan Elit Sdn Bhd (“Pulangan Elit” or “Vendor”) for the proposed acquisition of all that piece of prime land measuring approximately 6.54878 acres net in Seksyen U19, Daerah Petaling as more particularly described in section 2.3 herein (“Land”) for cash consideration of RM85,000,000 or approximately RM297.97 per square foot (“Proposed Acquisition”).

The Land is located in Seksyen U19, Daerah Petaling at the junction of Jalan Welfare along the main thoroughfare of Jalan Sungai Buluh-Shah Alam. The Land is diagonally opposite the upcoming MRT station next to the Rubber Research Institute of Malaysia (RRIM) land which is the first MRT station after the Sungai Buloh terminal. The proposed integrated development will be called D’sara Sentral.

Based on the preliminary plans, the Land is proposed for an integrated lifestyle commercial development with an estimated gross development value (“GDV”) of approximately RM800 million. D’sara Sentral will be a mixed development comprising SoVo (small office versatile office), retail space and service residences with proposed direct link to the MRT station via a pedestrian bridge.

Intramewah will be submitting the proposed development plans to the relevant authorities for approval. Subject to authorities’ approval, the development project is to be developed over a span of 3 to 5 years. Awareness programme and registration of interests for D’sara Sentral will commence within the second quarter of 2013 and preview is expected in the fourth quarter of 2013.

The Land is a strategic fit to the Group’s immediate-term plan to complement its existing portfolio with a range of products with mass market appeal to cater to the rising middle income group. Besides the scarcity of development land close to the catalytic MRT project, there is also a supply shortage of mass market products in property hotspots in the Klang Valley. The proposed development is also in line with the increasing trend and preference towards smaller sized residences within well planned integrated projects.

The success of the Group’s Star Avenue D’sara project just 6km away is testament to the potential of D’sara Sentral that is strategically located within the highly sought after northern growth corridor of the Greater Kuala Lumpur Strategic Development project. With the Proposed Acquisition, the Group now has 41 projects with combined remaining GDV and unbilled sales of approximately RM19.7 billion spread across Malaysia’s property.

The Land

The Land is held under title number H.S.(M) 11440, PT No. 4629, Pekan Baru Sungai Buluh, Daerah Petaling, Negeri Selangor with net land area measuring approximately 6.54878 acres (after deducting the area acquired by the relevant authority for the purpose of Mass Rapid Transit (“MRT”) measuring approximately 0.848 acres). The Vendor is the registered and beneficial owner of the Land.

The Land is a leasehold land subject to the category of land use “Perusahaan/Perindustrian”. The current category of land use zoning approved by Majlis Bandaraya Shah Alam is “Commercial” with plot ratio of 3. The Vendor will submit an application to convert the category of land use from “Industry” to “Commercial”. The lease term is 60 years with expiry date on 16 October 2028. As set out in section 2.6.2 herein, it is the Vendor’s obligation to apply for a full 99 year lease. Presently, there is an unoccupied factory building with approximate built up area of 70,000 square feet and age of 13 years erected on the Land.

Save and except for the charge in favour of United Overseas Bank (Malaysia) Berhad, the Land is to be acquired from the Vendor free from all encumbrances, caveats, charges, liens whatsoever, free from all squatters, tenants, occupants, invitees, licensees, structures, places of worship, burial grounds, encroachment and with vacant possession.

The Land is located in Seksyen U19, Daerah Petaling at the junction of Jalan Welfare along the main thoroughfare of Jalan Sungai Buluh-Shah Alam.The Land is diagonally opposite the upcoming MRT station next to the Research Institute of Malaysia (RRIM) land which is the first MRT station after the Sungai Buloh terminal.

As a well-established sub-urban centre of Kuala Lumpur, D’Sara Sentral enjoys a host of access routes including the North Klang Valley Expressway (NKVE), Lebuhraya Damansara Puchong (LDP) Guthrie Corridor and North South Highway. It is only a 15 minutes’ drive to Kuala Lumpur via various convenient routes. For example, the nearby Sungai Buloh Interchange along the NKVE provides easy access to both Kepong and Kuala Lumpur.

Established neighbourhoods within a 5km radius of D’Sara Sentral includes Sierramas, Valencia, Damansara Damai, Saujana Damansara, Bandar Sri Damansara, Kota Damansara, Bukit Rahman Putra, Taman Perindustrian KIP, Taman Industry Sungai Buloh, Bandar Baru Sungai Buloh, and Kampung Baru Sungai Buloh itself. Other affluent neighbourhoods within a 10km radius of the project include Kepong, TTDI, Damansara Utama and Selayang.

There are currently 4 major secondary schools in the area, namely Sekolah Sri Bestari, SMK Bandar Baru Sungai Buloh, SMK Bukit Gading and SMK Bukit Rahman Putra as well as numerous primary schools including SJK(C) Sungai Buloh. The elc International School in nearby Sierramas provides both primary and secondary education.

Other than the upcoming MRT station, there is also a KTM Komuter station in the middle of Sungai Buloh that connects to the Rawang - Seremban line. The Bukit Rahman Putra Golf Course is just a short drive away. The Sungai Buluh Hospital which has been identified as a center of excellence for various disciplines including emergency and trauma, neurosurgery and orthopaedics is also close by.

Basis of purchase

The purchase price of RM85,000,000 was arrived at between the parties on a “willing-buyer willing-seller” basis after taking into consideration the following:

·         the scarcity of strategic development land along the Sungai Buloh and Kajang MRT Line

·         the Group’s familiarity with marketability and development potential of land within the vicinity following the overwhelming success of the Group’s Star Avenue D’sara project 6km away; and

·         strategic fit of the Land to the Group’s fast turnaround development model with ready infrastructure connectivity and amenities.

·         Based on Mah Sing’s internal assessment of the Land, the purchase price is within range of acceptable land cost given the potential GDV to be generated. No valuation was carried out on the Land.

More than 2,500 people at Mah Sing’s Southville City@KL South launch

SERI KEMBANGAN: Property-based Mah Sing Group Bhd (Mah Sing) has launched its Southville City@KL South sales gallery last Saturday.

Following the launch, a private balloting for registrants of Savanna executive suites, phase one of Southville City@KL South was held, which saw 1,068 units of Savanna executive suites worth RM351mil pre-booked in eight hours of the balloting event.



More than 2,500 guests turned up for the event. Present to launch the event was Mah Sing chairman, Gen (R) Tan Sri Yaacob Mat Zain, executive director Datuk Lim Kiu Hock and chief operating officer for marketing and sales, township residential James Bruyns. Mah Sing, in a press statement, said the the first phase of its largest township so far, Savanna executive suites, offers freehold three-bedroom suites with built-up from 956 sq ft and indicatively priced from RM280,000.

The units have upgraded features of two carpark bays, four units of air conditioners, two water heaters and two shower screens. Phase 1B comprising 766 units in Tower B1 and B2, was 90% booked and due to the overwhelming response, Phase 1A, which also has 766 units in Tower A1 and A2, was opened later in the day. This phase was 50% booked within the same day. In view of the keen interest, Mah Sing intended to open two more towers and the Lifestyle Retail Lots @ Savanna with an indicative price from RM1.3mil which would also be available for pre-selection next week.

“Savanna Executive Suites is the first phase of Mah Sing’s Southville City @ KL South. One of our largest township projects, Southville City@KL South meets market demands for affordable housing for the middle-income group yet offers that special touch of class and distinction in each component of the township,” said Yaacob.

“The keen interest shown in our property signifies the trust and support the public has on Mah Sing Group and its products,” he added.

The 428-acre Southville City@KL South with the estimated gross development value of RM5.15bil is accessible with the proposed direct interchange from the North-South Highway and only 30-minute drive from the KL city centre. Yaacob noted, “The development concept of Southville@KL South is ‘connectivity’, which forms the framework for an exciting communal living environment.

“We are making this integrated township ‘walk-friendly’ with a 13km pedestrian footpath-cum-bicycle track that connects the entire neighbourhood. There will be a riverside walk, nature trail and even a nine acres urban park.”

Upon completion, Southville City@KL South will be home to 17,500 people and provide seamless and rounded lifestyles for different family sizes. Upcoming phases will have properties for the upgrader market like linked semi-D, semi-detached and bungalows.

Mah Sing plans to build close to 70% of the residential component at below RM1mil per unit to meet the strong market demand for bread and butter properties.

The STAR, 30 Sept 2013

IJM Land and FCW Holdings Bhd in tie-up

PETALING JAYA: IJM Land Bhd has entered into a shareholders’ agreement with FCW Holdings Bhd and its 50:50 joint-venture company (JV Co) 368 Segambut Sdn Bhd to regulate their relationship in relation to a mixed development on four parcels of land in Kuala Lumpur.

A Bursa Malaysia announcement said it would entail the JV Co entering into two conditional sale and purchase agreements with the FCW units – FCW Industries Sdn Bhd and Federal Telecommunications Sdn Bhd – to acquire the said freehold land.

20 Sept 2013, The Star