KUALA LUMPUR (Aug 6): Mah Sing Group Bhd is acquiring an approximately 1.81ha (4.52-acre) land along Jalan Wangsa Melawati 1 here for RM61.97 million to develop two blocks of condominiums with an estimated gross development value of RM378 million.

In a statement to Bursa Malaysia today, Mah Sing said its wholly-owned subsidiary Maxim Heights Sdn Bhd had today signed the conditional sale and purchase agreement with JL99 Property Sdn Bhd's wholly-owned subsidiary KLFA Properties Sdn Bhd.

Mah Sing said the tract is a leasehold land expiring on Jan 21, 2117.

"The land is purchased with the benefit of approved development order for residential development, enabling rapid speed to market to meet current market demand in the matured location," Mah Sing said.

"Based on preliminary plans, the new project, to be named M Adora is planned for a fully residential condominium development with amazing city and highland view," the company said.

In a separate statement today, Mah Sing founder and group managing director Tan Sri Leong Hoy Kum said the proposed land acquisition proves the company's commitment in expanding its landbank for projects at strategic locations in the Klang Valley.

"Coupled with our unique quick turnaround model, we believe M Adora will be able to match the current market demand for affordable housing that comes with ample amenities. This is what we call 'luxury you can afford'.

"Having the vision of inventing sustainable developments, we are always looking at project features and concepts that [enhance] the quality of lives of our home buyers. This project in Mukim Setapak is planned for a fully residential condominium with amazing city and highland view, and yet affordably priced from RM468,000 for a home with indicative built up from 850sq ft. This augurs well for our continuous efforts to provide quality lifestyle for affordable homes," said Leong.

In the Bursa filing, Mah Sing said it intends to fund the costs related to the proposed acquisition and development through a combination of internally generated funds and bank borrowings.

Mah Sing said it will decide the funding mix later after taking into consideration the group's gearing level, interest costs and internal cash requirements for its business operations.

"The proposed acquisition is not expected to have a material impact on the earnings of the group for the financial year ending Dec 31, 2019 as the proposed development is expected to commence registration of interest in the fourth quarter of 2019. However, the proposed acquisition is expected to contribute positively to the future earnings of the group.

"Barring any unforeseen circumstances, the proposed acquisition is expected to be completed in the fourth quarter of 2019," the company said.

At 3:11pm today, Mah Sing's share price fell 0.5 sen or 0.55% to 90.5 sen with 1.81 million shares transacted. The company's latest reported net assets per share stood at RM1.45.