Mah Sing strengthens southern Klang Valley presence with RM1.7bil township project: TA Securities

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MAH SING announced that it has entered into a sale and purchase agreement with Pelangi Sdn Bhd, an indirect subsidiary of S P Setia, for the proposed acquisition of 305 acres of freehold land in Semenyih for RM273.5 mil or RM20.60psf. 

Of the total, approximately 275 acres are net developable, while the remaining 30 acres will be allocated for infrastructure, utilities, and nonsaleable components such as roads, green buffers, and community facilities.

“The newly acquired freehold land adjoins the existing 500-acre M Legasi Township, strategically positioned in the fast-growing southern corridor of the Klang Valley,” said TA Securities. 

It is surrounded by established educational institutions such as the University of Nottingham Malaysia and the MARA Japan Industrial Institute, as well as recreational attractions including Broga Hill Park.

Mah Sing plans to develop a new integrated township, M Legasi 2, with an estimated GDV of RM1.7 bil on approximately 175 acres, subject to detailed design and regulatory approvals. 

The project will feature 2-storey superlink, linked semi-detached and semi-detached homes, serviced apartments, and shop lots.

Building on the success of M Legasi 1, the new phase will reinforce Mah Sing’s presence in the Semenyih corridor, targeting upgrader and first-home-buyer segments from Kajang, Bangi, and Seremban.

The land benefits from existing infrastructure and access roads, enabling faster development readiness and reduced lead time.

The remaining 100 acres are earmarked for strategic partnerships with institutional, industrial, or community partners to introduce catalytic components that enhance the township’s vibrancy and long-term value.

In line with Mah Sing’s quick-turnaround strategy, registration of interest is planned for the second half of 2026 (2H2026), with an official launch targeted in 2027. 

The project is expected to span roughly eight years, supporting the group’s medium-term earnings visibility.

Based on the planned RM1.7 bil GDV, the purchase price of RM273.5 mil translates to a land cost-to-GDV ratio of 16.1%, which is within a favourable range for township developments of this scale. 

The effective ratio is likely lower, as it is calculated over the full 305 acres while only 175 acres currently carry development potential.

The remaining 100 acres, reserved for catalytic or partnership-driven uses, are expected to generate higher GDV per acre once plans are finalised.

At RM20.60 psf, the acquisition price represents a 14% premium to the earlier 500-acre purchase from S P Setia. 

“We view the premium as justified, given the land’s adjacency to M Legasi 1, existing infrastructure readiness, and integration potential within the expanded masterplan,” said TA.

Overall, the acquisition cost is reasonable considering its strategic location within the southern Klang Valley, robust demand for affordable-to-mid-tier landed homes, and Mah Sing’s proven execution track record in township developments.

The acquisition aligns with Mah Sing’s strategy of securing prime land in Greater KL to expand its M Series portfolio.

M Legasi 2 will strengthen the group’s foothold in the Klang Valley’s southern corridor, leveraging improving connectivity and steady housing demand. —Nov 4, 2025

Main image: Rumah-i

 

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