PROPERTY development-based Mah Sing Group Bhd has entered into an agreement to buy 261 acres in Johor Baru for RM61.5mil on a deferred-payment basis.

The company said in a statement yesterday the land cost worked out to RM5.41per sq ft, with conversion premium for mixed development paid.

Mah Sing plans to develop mixed housing and commercial properties on the land, where the project carries an estimated gross development value of RM500mil. It expects to complete the acquisition in the first half of next year.

The freehold land is located about 10km from the group's existing project of Austin Perdana, which is 13km from the Johor Baru city centre.

It is also close to Bukit Rinting, Bandar Seri Alam and the o-going Taman Rinting project, as well as hypermarkets and shopping malls such as Giant, Carrefour and Jusco.

The proposed acquisition was negotiated for attractive payment terms under which the bulk of the land cost would be paid 36 months later, the statement said.

Under the terms, 5% of the land cost will be paid upon signing of the agreement, another 5% to be paid 14 days from the date of the agreement, while the balance of 90% will be a lump-sum payment to be paid on 30 months from the date of fulfilment of conditions. The conditions are to be fulfilled within six months from the agreement date.

Mah Sing managing director Datuk Leong Hoy Kum said: ''With conversion premium paid, the proposed land acquisition has immediate development potential and is a continuation of the group's presence in Johor, following the success of its township developments of Sri Pulai Perdana in Skudai and Austin Perdana in Johor Baru.''

Source : The Star 22/12/2005