Completion Of The Sale Of The Icon Jalan Tun Razak (east) With Kuwait Finance House K.s.c And Autron

PRLog (Press Release) – Jul 14, 2008 – Mah Sing Group Berhad in a benchmark deal sold its 20-storey Grade A office, The Icon Jalan Tun Razak (East Wing) to Kuwait Finance House K.S.C - Autron Corporation Limited for RM255million in November 2007.  To date, all the conditions precedent have been completed.  With this, the payment of 18% of the sale consideration of RM237,091,500 amounting to RM42,676,470 is payable within 7 days from the date of the supplemental agreement.  The balance 82% of the Sale Consideration, amounting to RM194,415,030.00 shall be paid within  7 days from the issuance of the project architect’s certificate of practical completion (“CPC”).  The proceeds will be optimally utilized to capitalize on business opportunities which are in line with the Group’s business strategy.    

Mah Sing’s Group Managing Director and Group Chief Executive Dato’ Sri Leong Hoy Kum said, “We take pride in building this Grade A office as the progress of the works is at level 17 with completion expected in the first half of 2009.  This shows our commitment to our investors to build this iconic building. Upon completion next year, this office shall be one of only 2 new Grade A offices to cater to the increasing demand for quality office space in the vicinity of Kuala Lumpur City Center. ”  

Together with the en bloc sale of the West Wing to Koperasi Permodalan Felda for RM174.4million in July 2007, The Icon Jalan Tun Razak has reaped RM429.4million in Gross Development Value (GDV) for Mah Sing within 13 months of the Group purchasing the prime land in October 2006, fitting perfectly into the Group’s business model of having a quick turnaround.

Today the Group is financially strong and will continue to build its strong balance sheet to capitalize on any business opportunities that will fit well into its business model.

The Group is selectively bullish for the property sector in 2008 and 2009, and sees growth in branded developers’ medium to high-end residential and commercial projects in good locations.  Regarding investor sentiments on the market, Dato’ Sri Leong opined that buyers need time to adjust, but would still invest in properties as they are still the best hedge against inflation.  He said, “We have carefully monitored building costs increases over the past year, and have judiciously constructed in advance to lock in the old costs.  Today, we are able to offer completed or soon-to-be completed homes at very competitive prices to our customers, especially Aman Perdana and Kemuning Residence in the Klang Valley, and Sierra Perdana in Johor Bahru.  We shall continue to be innovative and proactive to ensure that buyers are happy and getting good value from buying our homes.”

The Group has 14 residential and commercial projects in prime locations - 9 in the Klang Valley, 4 in Johor Bahru in Iskandar Malaysia and 1 in Penang with a remaining Gross Development Value (GDV) of RM2.98billion, and unbilled sales of approximately RM1billion as of 31 March 2008.  This represents a total GDV of approximately RM4billion which ensures the Group’s earnings visibility for 7 years.