Mah Sing says purchase price of two Puchong plots have been lowered by 8.8% to RM78.28m

• When Mah Sing first announced it was buying the plots in January, it was going to pay RM40.19 million for the parcel that measures 3.8 acres, and RM45.67 million for the other parcel that measures 4.4 acres, or a total of RM85.86 million.

KUALA LUMPUR (Aug 15): Mah Sing Group Bhd said the purchase price of two parcels of land in Puchong Perdana it is acquiring from Millennium Acres Sdn Bhd has been lowered by 8.83% or RM7.58 million.

In a filing to Bursa Malaysia on Monday (Aug 14), the property developer said the revised purchase prices of the two plots of land have been adjusted to RM37.17 million and RM41.11 million respectively, amounting to RM78.28 million.

When Mah Sing first announced it was buying the plots in January, it was going to pay RM40.19 million for the parcel that measures 3.8 acres, and RM45.67 million for the other parcel that measures 4.4 acres, or a total of RM85.86 million.

Hence, the balance purchase price of the first and second parcels have now been revised to RM33.15 million and RM36.54 million respectively, given that Mah Sing had placed a deposit of RM4.02 million for the first parcel, and RM4.57 million for the second.

Millennium Acres, from whom Mah Sing is buying the plots, is 50%-owned by Tanco Holdings Bhd’s managing director Datuk Seri Andrew Tan Jun Suan.

Mah Sing and Millennium Acres had agreed, as per the sales purchase agreement announced in January, that the purchase prices would be adjusted if any discrepancy arises in the area of the lands between the agreed area and the actual area of the lands after the subdivision exercise. In the event of such discrepancies, the purchase prices would be adjusted based on the rate of RM240 per square foot.

“The vendor [Millennium Acres] shall pay the shortfall of RM11.48 million to the chargee [Amanah International] towards settlement of the redemption sum on Aug 15, 2023,” it said.

Mah Sing's units will pay the revised balance purchase price for both parcels to Amanah International Finance Sdn Bhd, to whom the plots have been charged by the vendor, to settle the redemption sum for the plots on or before Aug 17, 2023.

Mah Sing said the land parcels located in Puchong Perdana have a potential gross development value of about RM726 million. The group intends to develop one of the parcels into a residential project and the other into a mixed-use development.

The property developer plans to fund land acquisition and future developments on it via a combination of internally-generated funds, bank borrowings and proceeds raised from the disposal of undeveloped land.

The acquisition is expected to be completed in the second half of this year.

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