Mah Sing (BUY) - Making a grand entrance to East Malaysia

Mah Sing (BUY)

Making a grand entrance to East Malaysia

Mah Sing has entered into an agreement to develop 4.26 acres of leasehold land in Harbour City, Kota Kinabalu, for RM39.0m or approximately RM210 psf. 

They also have an option to develop another 4.408 acres (RM216 psf.  This would total RM830m of GDV, over a span of 5 years.  

The project, Sutera Avenue, is expected to be similar in concept to 30 Jewels and Gourmet Street shops in the flagship Icon City project in Petaling Jaya, and complemented by street mall retail lots and serviced apartments. 

We maintain our forecast numbers and RNAV for the time being, pending more concrete details regarding the project.  Maintain TP at RM2.44 (30% discount to RNAV). BUY

 Source: HLIB Research 27 March 2012