KUALA LUMPUR: Mah Sing Group Bhd has inked an agreement to develop 74.87 hectares (185 acres) of prime industrial development in Sepang with an estimated gross development value (GDV) of RM728 million.

       In a statement today, the property group said Fusion Heights Development Sdn Bhd, a subsidiary of Mah Sing South Sea Industrial Development Sdn Bhd (MSSSID) will develop what will be known as Mah Sing Business Park.

       Mah Sing owns 70 per cent of MSSSID.

       The 74.87 ha involves a 10 per cent downpayment with the balance 90 per cent of the total purchase price payable three months on completion of the conditions precedent. The total price for the land is RM100.73 million, or RM12.50 per square foot (psf).

       "Landowner Premier Land Resources Sdn Bhd has also granted Fusion Heights Development Sdn Bhd the option to purchase an additional 152.42 ha (376.65 acres) at RM12.50 psf within four years of formalising the sale and purchase agreement,” the statement said.

       "The potential GDV for the entire 227.29 ha (561.65 acres) is up to RM2 billion including comparable development components," said the group.

       Premier Land Resources intends to take a 20 per cent stake in Fusion Heights Development, equivalent to 500,002 ordinary shares.

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       "The landowner’s participation as a shareholder adds credibility and confidence to the success of Mah Sing Business Park,” the statement said.

       "The staggered investment structure with the initial purchase of 74.87 ha with the option for the rest of the land within four years, along with the upfront fixed cost of RM12.50 psf, helps mitigate risk.”

       It also creates growth opportunities without placing excessive pressure on the balance sheet and liquidity, the statement said.

       The development comprises customised factories, industrial lots and cluster, semi-detached and detached factories for medium and light industrial businesses.

       "The development is set to attract players from high-tech manufacturing and value-creation manufacturing," it said. - Bernama