Mah Sing to focus on landbank expansion in Klang Valley
Published on: Thursday, July 27, 2017
Kuala Lumpur: Property developer Mah Sing Group plans to increase its landbank in the Klang Valley to make up 75 per cent of its total landbank in the next two to three years from 67 per cent currently.Executive Director, Datuk Steven Ng, said considering the company's low gearing ratio of 0.02 times against 0.5 times limit set internally, it had the ability to borrow up to RM1 billion for future land acquisitions."If land acquisition constituted 10 per cent of gross development value (GDV), then we can have projects with potential GDV of up to RM10 billion," he told reporters on the sidelines of Invest Malaysia 2017 conference here.
ADVERTISEMENT
He said the company's move to focus on the Klang Valley was due to the region's high population, which is targeted to reach 10 million by 2020, and better public transport development as the government continued to spend on public transport infrastructure.However, he said the new land acquisitions would need to fulfill certain criteria such as strategic location, fair prices and method of payment as the company continued to adhere to prudent financial policy of maintaining a healthy net gearing ratio.On outlook, he said the company was on track to achieve its RM1.8 billion sales target after recording RM410.3 million sales in the first three months of this year, with about 70 per cent of the sales from projects in Greater Kuala Lumpur.Stay up-to-date by following Daily Express’s Telegram channel.
Daily Express Malaysia
ADVERTISEMENT
Meanwhile, Ng commended the plan by the government's to introduce a regulatory body to oversee affordable housing, saying it would give more clarity to the buyers as well as the lending institutions on the affordable housing threshold. – Bernama
