Wednesday 6 February 2013

Property sector to pick up after GE


By Farah Wahida:

Malaysia’s property market is expected to improve after the 13th general election (GE), according to Tan Sri Leong Hoy Kum, Group CEO and Group Managing Director of Mah Sing Group.

“After the GE, I believe the property market will be more vibrant. There’ll be government land ready for tender such as the Rubber Research Institute Malaysia land in Sungai Buloh that we’re keen.”

Malaysia is also doing well compared to other countries, and as far as Mah Sing is concerned, it is business as usual, he said after the group’s extraordinary general meeting (EGM) held yesterday.

At the meeting, shareholders also approved the company’s proposed renounceable rights issue with free warrants to raise up to RM400 million. This also includes a one for every five share bonus issue for stockholders.

The fund raising exercise will partly finance the group’s property projects, including working capital and land acquisition costs. The new warrants and shares are also expected to be listed by March.

Presently, Mah Sing is Malaysia’s second biggest developer by sales value, and is eyeing RM3 billion worth of sales this year.

For 2013, its sales will be boosted by six new property launches with a combined gross development value of RM7.4 billion. They include Sutera Avenue in Kota Kinabalu, The Meridin@Medini in Iskandar, Mah Sing iParc@Tanjung Pelepas, Ferringhi Residence in Penang, as well as Klang Valley’s Southville City and M Residence 2.

The group is also assessing new landbanks in Penang, Klang Valley, Johor Bahru, Kota Kinabalu and Greater Kuala Lumpur for new acquisitions this year.

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