Mah Sing Group Berhad will undertake a mixed development on five acres of land which it is acquiring in Setapak, Kuala Lumpur for RM89 million.
The proposed project will be named M Astra and it will have a gross development value of RM618 million, comprising two blocks of serviced suites.
Mah Sing founder and group managing director, Tan Sri Leong Hoy Kum said the GDV of RM618 million is based on preliminary plans for M Astra and subject to authorities' approval.
M Astra will feature three-bedroom and four-bedroom units, with indicative built-up ranging from 850 sq ft to 1,030 sq ft.
Leong said the units will be affordably priced with an indicative starting price from RM399,000.
He said the land acquisition of M Astra is timely as he foresees that the recovery of the property market is gaining momentum.
"The new development will continue to address the demand for affordable homes in sought-after locations in the Klang Valley," he said in a statement today.
Leong said M Astra is expected to leverage on a huge target catchment as it is within the vicinity of matured neighbourhoods such as Danau Kota, Desa Setapak, Setapak Jaya, Wangsa Maju, Taman Melati, Titiwangsa, and Setiawangsa.
Further, these matured residential communities are highly accessible via major highways and trunk roads.
Leong said the land also has three frontages facing Jalan Usahawan 5, Jalan Kilang and Jalan Usahawan 6, and is just 600 meters off Jalan Genting Kelang, a major trunk road in Kuala Lumpur.
The proposed development is also situated about 3km from Mah Sing's M Adora project in Wangsa Melawati.
"We believe that first-time home buyers and upgraders from surrounding areas who want to stay near the central business district will find M Astra very attractive and convenient as we plan to have retail elements within the mixed development. We want to be ready to seize the opportunity to meet the home buyers' need for affordably priced projects," he said.
Leong said the living environment is very conducive as the land is surrounded by ready amenities such as primary and secondary schools, educational institutions, public transport, malls, and hospitals.
"We are confident that M Astra will be another successful project just like M Adora. The proposed development will also feature some retail lots with plans to accommodate drive-through F&B outlets," he said.
Leong said M Adora has received a positive take-up rate of 73 per cent for its two towers in less than 10 months from its launch last year, showcasing strong interest in the location.
M Astra is Mah Sing's second land deal of the year and also the company's first pocket land acquisition since it acquired M Oscar, M Luna, and M Adora in 2019.
All these projects were subsequently launched within seven to 12 months.
Leong said Mah Sing aims to do the same for M Astra, adding that registration of interest is targeted to be in the third quarter of 2021.
Mah Sing will continue to scout for more strategically located lands, with Greater Kuala Lumpur and Klang Valley being the focus areas, driven by its strong balance sheet with cash and bank balances and investment in short-term funds of about RM1.16 billion as at December 31, 2020.
The land acquisition of M Astra will increase its prime landbanks to 2,081 acres, with a total remaining GDV and unbilled sales of RM25.26 billion.