Mah Sing re-enters KLCC premium market with RM260m land deal

Aug 12, 2025

MAH Sing Group Bhd is making a comeback in the Kuala Lumpur city centre (KLCC) premium property market with the acquisition of the Corus Hotel site along Jalan Ampang for RM260 million.
The group has entered into a sale and purchase agreement with Ming Court Hotel (KL) Sdn Bhd to acquire the 1.485-acre freehold parcel, which is strategically located within walking distance to the Petronas Twin Towers, Suria KLCC, KLCC Park and major shopping malls and transit stations.
Mah Sing plans to redevelop the site into a premium serviced apartment project with an estimated gross development value (GDV) of RM1.28 billion.

The proposed development will feature approximately 1,000 units with an average selling price (ASP) of RM2,000 per sq ft and built-up areas ranging from 500 sq ft to 1,200 sq ft.
This marks Mah Sing’s re-entry into the high-end residential segment, more than a decade after its earlier KL city projects such as The Icon @ Jalan Tun Razak, M Suites @ Embassy Row and M City along Jalan Ampang.
According to MBSB Research: “We are neutral on the acquisition despite it diverges from its focus of developing affordable residential property, our opinion is premised on the rare opportunity of securing prime land near KLCC.”
The research house noted that while the acquisition price of RM4,019 per sq ft is on the higher end of the RM3,500-RM4,100 per sq ft range transacted in the KLCC area over the past 10 years, the land cost-to-GDV ratio of 20% is reasonable.
“Margin of the project is expected to be decent at 20%,” it said, adding that Mah Sing is targeting to launch the project in the first half of 2026 (1H26) in line with its quick turnaround strategy.
RHB Research is “mildly positive on Mah Sing’s latest land acquisition,” viewing the move as an opportunity to tap into renewed interest from foreign buyers.
“This new development is mainly targeted at foreigners as well as investors, in our view. We understand that The Conlay by E&O and Pavilion Square saw more foreign buyers recently, especially from China,” it added.
The acquisition will be funded through a combination of internal funds and bank borrowings.
Mah Sing’s net gearing is expected to increase from 0.17 times as at the first quarter of 2025 (1Q25) to 0.23 times upon completion of the transaction, which is expected in 1Q26. Despite the pivot to high-end development, Mah Sing remains committed to its affordable housing segment under the M Series.
“Management indicated that it will continue to focus on its M series projects and unlikely pursue high-end development aggressively,” said RHB Research.
Mah Sing’s recently launched M Grand Minori project in Johor Bahru has achieved a 90% take-up rate for the first block of Phase one, reflecting resilient demand for its core affordable offerings.
RHB Research maintained its earnings forecast for Mah Sing and its target price of RM1.83, which implies a 52% upside and a dividend yield of around 4%.
MBSB Research likewise kept its earnings estimates unchanged, but revised its target price slightly higher to RM1.51 from RM1.49, based on an unchanged 38% discount to revised net asset value (RNAV).
“We continue to see healthy new sales outlook for Mah Sing which will support earnings growth going forward. Meanwhile, dividend yield is decent at 4%. Hence, we maintain our ‘Buy’ call on Mah Sing.” — TMR

This article first appeared in The Malaysian Reserve weekly print edition

Source: The Malaysia Reserve