MIDF Amanah Investment Bank Bhd said in a note today the land acquisition was for the development of new land to be named M Tiara 2, about 400m from M Tiara.

“The land is strategically located between the townships of Mutiara Rini and Lima Kedai.

“M Tiara 2 is expected to continue the success of M Tiara. The proposed developments on M Tiara 2 are landed homes with indicative selling price starting from RM770,000 and serviced apartments with indicative starting price from RM253,000,” it said.

MIDF said the project is to have a total gross development value (GDV) of RM1.45 billion, which translates to an attractive land cost-to-GDV ratio of 7.2%.

MIDF maintains a ‘Buy’ with a revised target price of RM1.42 from RM1.23 and maintains the earnings forecast for financial year 2024 until 2026.

“We maintain our call on Mah Sing as we like its exposure to the affordable residential segment and growing presence in the industrial properties segment which will further drive earnings growth going forward,” it said.

Last Friday, Mah Sing Group Bhd’s wholly owned subsidiary Venice View Development Sdn Bhd entered into a conditional sale and purchase agreement with Amanah Raya Bhd to acquire 40.4686 hectares (100.4 acres) for RM103.75 million in Pulai, Johor Bahru.

At 11.10am, Mah Sing’s shares rose 4.0 sen to RM1.30 with 6.37 million shares traded on Bursa Malaysia.