012 Board of Directors
what’s
Rationale As an innovative property developer, we have been making waves with our impressive portfolio of quality projects. Over IN the past two decades, we have placed our signature on some outstanding properties across the nation. Our portfolio includes residential, commercial, integrated as well as industrial development projects. We ensure that every project we undertake incorporates intelligent design and sustainability in terms of energy efficiency.
As a market-driven developer, we will continue to offer properties that are strategically located, innovative and thoughtfully planned. Our ultimate aim is to ensure full customer satisfaction through the consistent delivery of high quality projects and services. 020 042 098 116 Chairman’s Review of Corporate Financial Statement Operations Governance Statement Statements
Go online to our website at: www.mahsing.com.my
CORE FACTS 127 Statements of Profit or Loss and IDE002 Group Five-Year Financial Other Comprehensive Income Highlights 128 Statements of Financial Position 006 Corporate Information 130 Consolidated Statement of 007 Corporate Structure Changes in Equity 008 Awards & Recognition 132 Company Statement of Changes 012 Board of Directors in Equity 014 Directors’ Profile 134 Statements of Cash Flows 137 Notes to the Financial Statements MESSAGES 219 Supplementary Information 020 Chairman’s Statement 220 Statement by Directors 032 Group Managing Director’s Report 221 Declaration by the Officer 042 Review of Operations primarily responsible for the 054 Media Highlights Financial Management of the Company ACTIVITIES 058 Sustainability Report ADDITIONAL INFORMATION 090 Calendar of Events 222 Properties Owned 227 Statistics of Shareholdings GOVERNANCE 230 Statistics of Warrant Holdings 098 Corporate Governance Statement 108 Audit Committee Report NOTICES 111 Statement on Risk Management 234 Notice of Twenty-Third Annual and Internal Control General Meeting 239 Statement Accompanying Notice FINANCIALS of Annual General Meeting 116 Directors’ Report 240 Notice of Dividend Entitlement 124 Independent Auditors’ Report and Payment 126 Statements of Profit or Loss 241 Form of Proxy 002
GROUP FIVE-YEAR FINANCIAL HIGHLIGHTS FINANCIAL YEAR ENDED 31 DECEMBER
Revenue Net Profit Attributable Equity Attributable (in RM’000) to Equity Holders to Equity Holders (in RM’000) (in RM’000) 339,249 2,904,723 2,268,629 MAH SING Group Berhad Annual Report 2014 280,616 1,952,292 230,617 2,005,596 1,775,260 1,570,696 168,556 1,244,897 1,073,151 918,866 118,071 1,110,108
2010 2011 2012 2013 2014 2010 2011 2012 2013 2014 2010 2011 2012 2013 2014
2010 2011 2012 2013 2014 Quality, the Hallmark of Excellence RM'000 RM'000 RM'000 RM'000 RM'000
Revenue 1,110,108 1,570,696 1,775,260 2,005,596 2,904,723 Profit Before Tax 177,865 238,628 315,523 371,504 455,012 Profit After Tax 128,403 168,637 231,768 279,261 337,663 Net Profit Attributable to Equity Holders 118,071 168,556 230,617 280,616 339,249
Total Assets 2,195,246# 2,850,381 3,595,086 4,583,751 5,305,986 Total Borrowings 506,580 977,617 910,297 1,129,845 1,459,240 Equity Attributable to Equity Holders 918,866 1,073,151 1,244,897 1,952,292 2,268,629 Total Equity 936,456 1,088,489 1,255,001 1,963,279 2,278,311
Return on Equity 13% 16% 19% 14% 15% Return on Total Assets 6% 6% 6% 6% 6% Net Gearing/(Cash) ratio 0.21 0.29 0.26 0.16 0.36 Basic Earnings per Share (sen) 11.01* 15.27* 20.82* 21.52 23.45 Fully Diluted Earnings per Share (sen) 11.00* 14.97* 20.55* 19.85 22.17 Net Assets per Share (RM) 1.10 1.29 1.48 1.38 1.54 Net Dividend per share 11.4% 16.5% 15.0% 16.0% 13.0% Dividend Payout Ratio 40.1% 41.0% 45.1% 42.1% 46.0%@ Price Earning Ratio 16.3^ 13.8^ 9.9^ 10.5 9.6 Share price as at the financial year end+(RM) 1.79 2.10 2.07 2.26 2.26
# The comparative figures for total assets have been restated to reflect the adjustment following the adoption of FRSIC17 in financial year 2011. * The comparative figures for basic and fully diluted earnings per share have been restated to reflect the adjustment arising from the rights and bonus issue completed during the financial year 2013. @ The dividend payout for 2014 is estimated based on number of shares as at 31 March 2015 and the proposed bonus issue to be completed by second quarter 2015. ^ The comparative figures for price earning ratio have been restated to reflect the adjustment to basic earning per share arising from the rights and bonus issue completed during the financial year 2013. + Share price is before adjustment on the effect of rights issue with warrants which exercise was completed on 26 February 2015. CORE FACTS
002 Group Five-Year Financial Highlights 006 Corporate Information 007 Corporate Structure 008 Awards & Recognition 012 Board of Directors 014 Directors’ Profile Avens Residence at Southville City@KL South
006
CORPORATE INFORMATION
BOARD OF DIRECTORS
JEN. TAN SRI YAACOB BIN MAT ZAIN (R) DATO’ STEVEN NG POH SENG Chairman/ Executive Director MAH SING Group Berhad Annual Report 2014 Independent Non-Executive Director LEONG YUET MEI TAN SRI DATO’ SRI LEONG HOY KUM Non-Independent Non-Executive Director Group Managing Director/ Group Chief Executive CAPTAIN IZAHAM BIN ABD. RANI (R) Independent Non-Executive Director NG CHAI YONG Chief Executive Officer LOH KOK LEONG Independent Non-Executive Director Quality, the Hallmark of Excellence
AUDIT COMMITTEE REGISTRAR CIMB Islamic Bank Berhad JEN. TAN SRI YAACOB BIN MAT ZAIN (R) Tricor Investor Services Sdn Bhd Hong Leong Bank Berhad CAPTAIN IZAHAM BIN ABD. RANI (R) (Company No. 118401-V) Hong Leong Islamic Bank Berhad LOH KOK LEONG Level 17, The Gardens North Tower HSBC Amanah Malaysia Berhad Mid Valley City, Lingkaran Syed Putra Malayan Banking Berhad Maybank Islamic Berhad NOMINATION COMMITTEE 59200 Kuala Lumpur Tel : 603-2264 3883 OCBC Bank (Malaysia) Berhad JEN. TAN SRI YAACOB BIN MAT ZAIN (R) Fax : 603-2282 1886 Public Bank Berhad LEONG YUET MEI Public Islamic Bank Berhad CAPTAIN IZAHAM BIN ABD. RANI (R) REGISTERED OFFICE RHB Bank Berhad RHB Islamic Bank Berhad Penthouse Suite 1, Wisma Mah Sing REMUNERATION COMMITTEE P.T. Bank Ekonomi Raharja No. 163, Jalan Sungai Besi P.T. Bank Permata Tbk JEN. TAN SRI YAACOB BIN MAT ZAIN (R) 57100 Kuala Lumpur The Bank of Tokyo-Mitsubishi UFJ, Ltd TAN SRI DATO’ SRI LEONG HOY KUM Tel : 603-9221 8888 LEONG YUET MEI Fax : 603-9222 2833 STOCK EXCHANGE LISTING OPTION COMMITTEE AUDITORS Main Market of Bursa Malaysia Securities Berhad JEN. TAN SRI YAACOB BIN MAT ZAIN (R) Deloitte (AF 0080) TAN SRI DATO’ SRI LEONG HOY KUM Chartered Accountants STOCK SHORT NAME LOH KOK LEONG Level 16, Menara LGB 1, Jalan Wan Kadir, MAHSING (8583) SECRETARIES Taman Tun Dr. Ismail, 60000 Kuala Lumpur INDEX YANG BAO LING (MAICSA 7041240) Tel : 603-7610 8888 Bursa Malaysia Property Index KUAN HUI FANG (MIA 16876) Fax : 603-7726 8986 WEBSITE BANKERS www.mahsing.com.my Affin Bank Berhad Alliance Investment Bank Berhad INVESTOR RELATIONS Al-Rajhi Banking & Investment Tel : 603-9221 8888 Corporation (Malaysia) Berhad Email : [email protected] CIMB Bank Berhad 007
CORPORATE STRUCTURE (ACTIVE OPERATING SUBSIDIARIES)
PROPERTY DIVISION PLASTICS DIVISION Property Development Plastics Manufacturing CORE FACTS 100% Capitol Avenue Development Sdn Bhd 100% Mah Sing Plastics Industries 51% Convention City Development Sdn Bhd Sendirian Berhad 100% Dsara Sentral Sdn Bhd 100% Kenwira Sdn Bhd 100% Elite Park Development Sdn Bhd 100% Vital Routes Sdn Bhd 100% Enchanting Heights Sdn Bhd 65% P.T. Mah Sing Indonesia 100% Enchanting View Development Sdn Bhd 100% Enrich Property Development Sdn Bhd Plastics Trading
100% Grand Prestige Development Sdn Bhd ME 100% Mah Sing Enterprise Sdn Bhd 100% Icon City Development Sdn Bhd SS AGE (formerly known as Sierra Peninsular S Development Sdn Bhd) 100% Jastamax Sdn Bhd 100% Klassik Tropika Development Sdn Bhd 100% Legend Grand Development Sdn Bhd 100% Loyal Sierra Development Sdn Bhd A
100% Mah Sing Properties Sdn Bhd C TIVITIE 100% Mestika Bestari Sdn Bhd
100% Mediterranean View Development S Sdn Bhd 100% Major Land Development Sdn Bhd 100% Maxim Heights Sdn Bhd 100% MS Lakecity Sdn Bhd
(formerly known as Mah Sing Group GO Ventures Sdn Bhd) VERNANCE 100% Multi Synergy Group Sdn Bhd 100% Myvilla Development Sdn Bhd 100% Nova Century Development Sdn Bhd 100% Nova Legend Development Sdn Bhd 100% Oasis Garden Development Sdn Bhd 100% Sanjung Tropika Development Sdn Bhd
100% Semai Meranti Sdn Bhd FINAN 100% Southville City Sdn Bhd C 100% Star Residence Sdn Bhd IAL 100% Supreme Springs Sdn Bhd S 100% Tropika Istimewa Development Sdn Bhd 100% Uptrend Housing Development Sdn Bhd ADDITI 100% Venice View Development Sdn Bhd
100% Vienna View Development Sdn Bhd O 100% Vienna Home Sdn Bhd NAL INF O
Property Management RMATI 100% Liberty Property Management Sdn Bhd ON 100% Acacia Springs Management Sdn Bhd 100% Mestika Kenangan Sdn Bhd 100% MS Icon Property Services Sdn Bhd 100% Prima Peninsular Development Sdn Bhd NO
100% Quantum Noble Development Sdn Bhd TICES
Property Investment 100% Marvellous Vantage Sdn Bhd 008
AWARDS & RECOGNITION
CORPORATE BRANDING 1. 10th Corporate Governance Asia 8. The Edge Billion Ringgit Club 15. The BrandLaureate ICON Annual Recognition Awards 2014 – Malaysia’s Highest Profit Growth Leadership Award 2014 – Tan Sri – Mah Sing Group Berhad Company (Property & REIT) Dato’ Sri Leong Hoy Kum 2. 5th Asian Corporate Director 9. The Edge Top Property Developers 16. The BrandLaureate Property Man Recognition Awards 2014 – Awards 2014 of the Year Award 2013-2014 – Tan Sri Dato’ Sri Leong Hoy Kum 10. iProperty.com People’s Choice Tan Sri Dato’ Sri Leong Hoy Kum
MAH SING Group Berhad Annual Report 2014 3. The 4th Asian Excellence Awards – Developer of the Year 17. The BrandLaureate President’s Recognition Award 2015 – 11. The Malaysian Reserve Property Award 2013-2014 for Mah Sing Best Investor Relations Press Awards 2014 – Most Group Berhad Company (Malaysia) – Mah Sing Outstanding Developer of the Year 18. Putra Brand Awards – Property Group Berhad 12. Malaysia HR Awards MIHRM 2014 Development 4. The 4th Asian Excellence – Mah Sing Group Berhad Recognition Award 2015 – Best 13. Asia HRD Awards – Contribution CEO (Investor Relations) – Tan Sri to the Society Dato’ Sri Leong Hoy Kum 14. Asia Responsible Entrepreneurship 5. Euromoney Best Developer Overall Awards 2014 – Investment in in Malaysia People 6. Euromoney Best Developer
Quality, the Hallmark of Excellence – Industrial/Warehouse in Malaysia, 2014 7. Euromoney 2014 – Best Managed Company (Malaysia)
7
5 1 9 009
PROJECTS 19. South East Asia Property Awards 23. South East Asia Property Awards 29. iProperty.com People’s Choice (Malaysia) 2014 – Best Developer (Malaysia) 2014 – Best Housing Award 2014 – Best Commercial – Mah Sing Group Berhad – Development (Central Malaysia) – Development – Icon City CORE FACTS Highly Commended Garden Residence – Highly 30. The Malaysian Reserve Property 20. South East Asia Property Awards Commended Press Awards 2014 – Most Iconic (Malaysia) 2014 – Best Luxury 24. South East Asia Property Awards Residential Value Proposition Condo Development (North (Malaysia) 2014 – Best Residential (Mixed development) for Malaysia) – The Loft@Southbay Development (East Malaysia) – The Southville City – Highly Commended 25. Residence, Sutera Avenue – Highly 31. The Malaysian Reserve Property 21. South East Asia Property Awards Commended Press Awards 2014 – Most Iconic
(Malaysia) 2014 – Best Luxury 26. Southeast Asia Property Award Residential Development for ME Condo Development (South 2014 – Best Condo Development Lakeville Residence SS AGE Malaysia) – Meridin Suites (Malaysia) – Highly Commended S Residence, The Meridin@Medini – – Ferringhi Residence by Mah Sing Highly Commended Group Berhad 22. South East Asia Property Awards 27. BCI Asia Top 10 Developers Award (Malaysia) 2014 – Best Mid-Range 28. Asia Pacific Property Awards Condo Development (Central (APPA) – Best High-Rise A C
Malaysia) – Garden Plaza – Architecture for M City TIVITIE Highly Commended S GO
15 VERNANCE 12
13 10 11 FINAN C IAL S ADDITI O NAL INF O RMATI ON NO TICE S The Loft@Southbay City, Penang
012 MAH SING Group Berhad Annual Report 2014 Quality, the Hallmark of Excellence
Board of Di 013
From Left: • CAPTAIN IZAHAM BIN ABD. RANI (R) • MR LOH KOK LEONG • DATO’ STEVEN NG POH SENG • TAN SRI DATO’ SRI LEONG HOY KUM • JEN. TAN SRI YAACOB BIN MAT ZAIN R • MR NG CHAI YONG irectors• MS LEONGLEONG YUETYUET MEIMEI 014
DIRECTORS’ PROFILE
“Excellence is the unlimited ability to improve the quality of MAH SING Group Berhad Annual Report 2014 what you have to offer”
• Malaysian, 79 years of age • Appointed to the Board on 29 June 1994 • Chairman of the Audit Committee • Chairman of the Nomination Committee • Chairman of the Remuneration Committee • Chairman of the Option Committee Quality, the Hallmark of Excellence • Attended all 4 Board Meetings and 4 Audit Committee Meetings convened during the financial year
Jen. Tan Sri Yaacob had a distinguished career spanning nearly 40 years in Angkatan Tentera Malaysia before retiring in JEN. TAN SRI YAACOB BIN MAT ZAIN R 1993 as a Panglima Angkatan Tentera Malaysia. He had attended courses at the Chairman/ Australian Army General Command and Staff Independent College, the Naval Post Graduate School in Non-Executive Monterey, United States of America, the Royal Director College of Defence Studies in the United Kingdom and the Advance Management Programme at Harvard Business School.
Apart from his directorship in the Company, he is the Chairman of Affin Hwang Investment Bank Berhad (formerly known as HwangDBS Investment Bank Berhad) and Syarikat Permodalan Kebangsaan Berhad. He is also a director of Affin Investment Berhad (formerly known as Affin Investment Bank Berhad).
There is no conflict of interest between him and the Company nor are there any family relationships between him and any director or major shareholder of the Company. He has not been convicted for any offences within the past 10 years other than for traffic offences, if any. 015
TAN SRI DATO’ SRI LEONG HOY KUM P.S.M., S.S.A.P., D.P.M.S., J.P., Hon. Ph.D Group Managing Director/Group Chief Executive CORE FACTS “Quality is not a privilege, it is an expectation”
• Malaysian, 57 years of age • Founder and First Director Appointed to the Board, on 3 December 1991 • Member of the Remuneration Committee
• Member of the Option Committee ME SS
• Attended all the 4 Board Meetings convened during the financial year. AGE S Tan Sri Dato’ Sri Leong Hoy Kum founded the plastics manufacturing division in 1979 and listed Mah Sing Group Berhad on the Kuala Lumpur Stock Exchange in 1992. He has been on the Central Committee of the 900-member Malaysian Plastics Manufacturers Associations since 1986. He is also the Honorary President of the Young Malaysian Movement A C
Association (YMM) since 1999 and of The Dramatic Art Society, Malaysia TIVITIE since 1996. Besides that, he is the Vice-President of the Table Tennis Association of Malaysia since 1999. S
Tan Sri Dato’ Sri Leong Hoy Kum is the key driving force behind the phenomenal growth and success of Mah Sing Group Berhad. Driven by his determination to maximise shareholders’ value and passion for GO
property, Tan Sri Dato’ Sri Leong ventured into property development in VERNANCE 1994. Being the Group Managing Director/Group Chief Executive, he has been instrumental in shaping Mah Sing as a multi-award winning real estate specialist. His vast experience spanning 30 years as well as his entrepreneur spirit culminated in the Group expanding rapidly with projects in Malaysia’s main growth corridors, namely Greater KL (Klang Valley and Kuala Lumpur), Johor, Penang and Sabah. F INAN In recognition of his achievements, he was conferred an honorary Doctor C of Philosophy (Ph.D.) in Business Administration by the Honolulu IAL
University, Hawaii in 2000. He was conferred the Darjah Paduka Mahkota S Selangor (D.P.M.S.) which carries the title of “Dato” and the Jaksa Pengaman (J.P.) awards by his Highness, Sultan of Selangor in 1996 and 2001 respectively. Tan Sri Dato’ Sri Leong was conferred the Darjah ADDITI Kebesaran Sultan Ahmad Shah Pahang Yang Amat DiMulia – Peringkat O Pertama Sri Sultan Ahmad Shah Pahang (S.S.A.P.) which NAL INF carries the title “Dato Sri” on the Sultan of Pahang’s O
77th birthday on 3rd November 2007 and the RMATI Darjah Panglima Setia Mahkota (P.S.M.) which carries the title “Tan Sri” in 2009. ON
He also sits on the Board of Directors of various other private companies. NO TICES He is the brother to Director, Ms Leong Yuet Mei. There is no conflict of interest between him and the Company nor has he been convicted for any offences within the past 10 years other than for traffic offences, if any. 016
“High performing teams are crucial to doing ordinary things MR NG CHAI YONG extraordinarily well” Chief Executive Officer MAH SING Group Berhad Annual Report 2014
• Malaysian, 53 years of age • Appointed to the Board on 1 July 2014 • Attended all 2 Board Meetings convened during the financial year which were held since his appointment
Mr Ng Chai Yong has close to 30 years of experience in civil engineering, banking and property industries.
After practising as a consulting engineer for 3 years, Quality, the Hallmark of Excellence he was in the banking industry for 4 years, first with Citibank N.A in Kuala Lumpur and later in Keppel Bank of Singapore.
Following his return to Malaysia, he joined SP Setia Berhad in 1993 where he served in numerous capacities for 11 years. His last position as the Director/General Manager of Bukit Indah Johor Sdn Bhd and CEO of Setia Eco-Park Sdn Bhd saw him handling large property developments in Malaysia’s central and southern regions.
Prior to joining Mah Sing Group Berhad, he was the executive director of FCW Property Management Sdn Bhd, a subsidiary of FCW Holdings Berhad.
There is no conflict of interest between him and the Company nor are there any family relationships between him and any director or major shareholder of the Company. He has not been convicted for any offences within the past 10 years other than for traffic offences, if any. 017
“We are what we repeatedly do. Excellence
therefore is not an act, CORE FACTS but is a habit”
• Malaysian, 49 years of age ME SS
• Appointed to the Board on 27 June 2005 AGE
• Attended all 4 Board Meetings convened during the S financial year
Dato’ Steven Ng Poh Seng has more than 25 years A
experience in audit, accounts, corporate finance and C TIVITIE financial investment. He holds a Bachelor of Science
degree majoring in accounting from the University of S Wales (UK). He is a member of both the Institute of Chartered Accountants in England and Wales and the Malaysian Institute of Accountants. He worked in a Chartered Accountancy firm in United Kingdom and upon his return to Malaysia, he served as a Manager GO VERNANCE in Malaysian International Merchant Bankers Berhad before joining SP Setia Berhad. After 8 years of service in SP Setia Berhad, he left as Head of Corporate Affairs prior to joining the Company.
DATO’ STEVEN NG In recognition of his achievements, Dato’ Steven Ng
POH SENG Poh Seng was conferred the Darjah Kebesaran FINAN Mahkota Pahang Yang Amat Mulia – Peringkat Kedua
Executive Director C Darjah Indera Mahkota Pahang (DIMP) which carries IAL
the title “Dato’” on the Sultan Pahang’s 82nd birthday S in 2013.
He is currently the Executive Director of the Company ADDITI
heading the Group Corporate and Investment O division. NAL INF O
There is no conflict of interest between him and the RMATI Company nor are there any family relationships between him and any director or major shareholder ON of the Company. He has not been convicted for any offences within the past 10 years other than for
traffic offences, if any. NO TICES 018 MAH SING Group Berhad Annual Report 2014
Quality, the Hallmark of Excellence MS LEONG YUET MEI CAPTAIN IZAHAM BIN ABD. RANI (R) Non-Independent Non-Executive Director Independent Non-Executive Director “Diversity breeds “People, safety and quality great ideas, and great are more than a priority, ideas lead to great they are a value”
achievements” • Malaysian, 53 years of age • Appointed to the Board on 16 April 2001 • Malaysian, 61 years of age • Member of the Nomination Committee • Appointed to the Board on 17 November 1997 • Member of the Audit Committee • Member of the Nomination Committee • Attended all 4 Board Meetings and 4 Audit Committee • Member of the Remuneration Committee Meetings convened during the financial year • Attended all 4 Board Meetings convened during the financial year Captain Izaham served in the Malaysian Armed Forces for nearly 14 years before his early retirement in 1992. He attended various career courses conducted domestically as Ms Leong Yuet Mei has been attached to RHB well as in Australia and Singapore. He was the Business Securities Sdn Bhd as a Dealers Representative since Development Manager at the Kukup Golf Resort in Pontian, 1991. Prior to that she was attached to KAF Discount Johor before serving Port Dickson Golf & Country Club as Berhad as a Senior Accountant. the General Manager until end 2004. Ms Leong Yuet Mei is the elder sister to Tan Sri Dato’ Captain Izaham is also a Director in a leading multinational Sri Leong Hoy Kum, the Group Managing Director/ petroleum company from the Sultanate of Oman, (MB Group Chief Executive. There is no conflict of interest Petroleum Services Sdn Bhd) and Epicentro Resources Sdn between her and the Company nor has she been Bhd which deals in Defence Products and is a subsidiary of convicted for any offences within the past 10 years British Aerospace (BAE Systems). other than for traffic offences, if any. There is no conflict of interest between him and the Company nor are there any family relationships between him and any director or major shareholder of the Company. He has not been convicted for any offences within the past 10 years other than for traffic offences, if any. MR LOH KOK LEONG Independent Non-Executive Director “Perfection is not attainable but if we chase perfection, we can catch excellence”
• Malaysian, 50 years of age MESSAGES • Appointed to the Board on 23 September 2002 • Member of the Audit Committee 020 Chairman’s Statement • Member of the Option Committee 032 Group Managing Director’s • Attended all 4 Board Meetings and 4 Audit Committee Report Meetings convened during the financial year 042 Review of Operations 054 Media Highlights
Mr Loh Kok Leong is an accountant by profession and has been attached with various international accounting firms both in Malaysia as well as overseas for more than 20 years, out of which 3 years were dedicated as a partner of Deloitte Touche Tohmatsu Kuala Lumpur. He is currently a partner of a professional services firm, Russell Bedford LC & Company. He is a member of the Malaysian Institute of Accountants, the Malaysian Institute of Certified Public Accountants and the Chartered Tax Institute of Malaysia.
There is no conflict of interest between him and the Company nor are there any family relationships between him and any director or major shareholder of the Company. He has not been convicted for any offences within the past 10 years other than for traffic offences, if any. 020 Ch
Dear Valued Shareholders,
In the pursuit of excellence, many definitions have been given to the meaning of “Quality”. Some regard it as a high value of excellence, while others have determined it to be an inherent or distinguishing character that sets a product or service apart from its peers. 021 h irman’s Statement As a premier lifestyle developer which has celebrated its The Group’s phenomenal results were driven by our strategy 20th year of operations in property development in 2014, of providing more acquirable homes at strategic locations we have taken a consistent journey towards achieving and with strategic pricing points. Our strategy however surpasses embedding quality in every aspect of our business. I more than just providing acquirable homes to the mass describe quality as a journey, for the simple reason that it is market. More importantly, it is to add value and quality. The not a constant, but rather a continuous endeavour towards Group exemplified this through the groundbreaking meeting the increasing expectations of society where quality ceremony of the Southville City@KL South Direct is due. Interchange in 2014, which will open a direct access leading directly into and out of the 428-acre Bangi township of It is this continuous strive for quality that has placed us Southville City from the North-South highway upon its today as among the top developers in Malaysia, and I am expected completion in 2018. pleased to report that Mah Sing Group has once again outperformed expectations in 2014, registering its highest The Group also saw robust activity in its existing projects in ever total sales of RM3.43 billion. This feat represents a 14% 2014, with projects such as Icon City in Petaling Jaya, growth in sales compared to the previous year, with net Garden Residence, Clover@Garden Residence and Garden profit surging at a 20.9% increase to RM339.2 million Plaza in Cyberjaya, M-City in Jalan Ampang and M Residence compared to the year before and revenue increasing by in Rawang headlining the year. 44.8% to RM2.9 billion versus last year.
Jen. Tan Sri Yaacob bin Mat Zain (R) Chairman/Independent Non-Executive Director 022
PROJECT Icon City Petaling Jaya
DEVELOPMENT TYPE Mixed Development of Shop Office and Retail Lots, iSoVO and iResidenz Serviced Apartments MAH SING Group Berhad Annual Report 2014
RM3.17 billion TOTOTAL GROSS DEVELOPMENT VALUE (GDV)
PROJECT
Quality, the Hallmark of Excellence Garden Residence Cyberjaya DEVELOPMENT TYPE 2 & 3-storey Super Link, 2 & 3-storey Semi-D and 3½ – storey Bungalow Units
RM996 million TOTAL GROSS DEVELOPMENT VALUE (GDV)
PROJECT Clover@Garden Residence Cyberjaya DEVELOPMENT TYPE 2 & 3-storey Semi-D
RM325 million TOTAL GROSS DEVELOPMENT VALUE (GDV) 023
PROJECT Garden Plaza Cyberjaya
DEVELOPMENT TYPE C O Mixed development of Lifestyle Suites RE FACTS and Commercial Shops
million RM436 MESSAGES TOTAL GROSS DEVELOPMENT VALUE (GDV)V)
PROJECT A C M-City TIVITIE
Jalan Ampang S
DEVELOPMENT TYPE Mixed Development of SoHO, Serviced GO
Residences, Sky Residences and 2 & VERNANCE 3-storey retail shops
RM1.4 billion
TOTALTO GROSS DEVELOPMENT VALUE (GDV) FINAN C IAL S PROJECT ADDITI
M Residence O NAL INF Rawang O RMATI
DEVELOPMENT TYPE ON Mixed development of 2-storey Link Terrace, 2-storey Super Link, 2-storey
Semi-D and 2 & 3-storey shops NO TICES
RM1.03 billion TOTAL GROSS DEVELOPMENT VALUE (GDV) 024
Icon Residence, Mont’ Kiara
2014 also saw the launch of our new project – Lakeville Residence – in Taman Wahyu, Kuala Lumpur, which comprise of 6 towers of residential and commercial products at a total gross development value (GDV) of MAH SING Group Berhad Annual Report 2014 approximately RM1.5 billion designed with a lakeside living theme. The Group also officially launched D’sara Sentral in Sungai Buloh, a fully integrated development with gross development value (GDV) of RM901 million comprising of 5 blocks with D’Style Shops (single and dual unit lifestyle retail shops); D’SoVo Suites (Smart Office Versatile Office) and D’Residenz Suites (service residences). Quality, the Hallmark of Excellence I am pleased to report that accumulatively, the Group charted a total GDV of RM3.9 billion from the new phase and project launches, representing an approximate 19% increase from 2013 of RM3.2 billion.
Building on this momentum, the Group looks forward to replicating its sales achievement with new phase and project launches to meet new demands in 2015, supported by our strong unbilled sales locked in at RM5.3 billion. The Group has set a sales target of RM3.43 billion for 2015 in line with our existing scale of operations with 48 projects in Greater KL, Klang Valley, Penang, Iskandar Malaysia in Johor Bahru and Kota Kinabalu, Sabah.
On a separate note, I am also pleased to welcome our new Chief Executive Officer cum Executive Director Mr. Ng Chai Yong to the Group and to the Board of Directors. Mr. Ng Chai Yong joined the Group on 1st July 2014, and brings with him invaluable experience from civil engineering, banking and the property industry of close to 30 years. 025
FINANCIAL REVIEW, CORPORATE HIGHLIGHTS AND DIVIDEND
Mah Sing Group recorded a stellar year in 2014, once again achieving a record- C O breaking performance in sales, revenue and profit and exceeding expectations in RE FACTS various key performance indicators (KPI). 2014 improvement compared to 2013 MESSAGES KPI & RESULTS A
REVENUE Largest Township Acquisition C To-Date and Land Acquisitions TIVITIE
A key milestone for the Group in 2014 S billion RM2.9 was the completion of the acquisition A bumper 44.8% increase from the of the freehold Bandar Meridin East in broad base of RM2 billion in 2013. Pasir Gudang, Johor, the Group’s
largest township to-date and also our GO
fifth township in Johor. VERNANCE NET PROFIT 2014 also saw the continued strong growth of landbanks by 1,134 acres from the acquisitions of 3 new lands in million RM339.2 Shah Alam, Puchong and Seremban at Surge of 20.9% in net profit an estimated gross development value attributable to higher work progress (GDV) of RM19.3 billion. For the FINAN and sales achieved in 2014 from the Puchong land, the Group has also C Group’s ongoing development projects been granted the option for an IAL such as Icon City in Petaling Jaya, additional 171 acres adjacent to S Garden Residence, Clover @ Garden the land. Residence and Garden Plaza in ADDITI Cyberjaya, M-City in Jalan Ampang and The Shah Alam land is an 85.43-acre
M Residence in Rawang. fairway land in SSAAS in Section 13, O NAL INF with a target preview in 2016. The Puchong land (Festival Lakecity) will O SALES see a proposed integrated mixed RMATI development with a potential GDV of ON approximately RM9.3 billion, while the RM3.43 billion Seremban Township land will include a Record-breaking sales representing a proposed residential development of 14% increase from 2013, representing terrace, superlink, Semi-D and NO TICES consistent sales above billion since bungalow homes with a potential GDV 2010 and a strong indication of the of approximately RM7.5 billion. Group’s performance and sustainability. 026
Icon City at Petaling Jaya MAH SING Group Berhad Annual Report 2014 Quality, the Hallmark of Excellence
DIVIDEND CORPORATE EXERCISE The exercise was oversubscribed as at 12 February 2015, the closing date for The Group remains committed towards During the financial year, the Group acceptance and payment of the Rights delivering value and returns to our embarked on a renounceable Rights Issue with Warrants. We received an shareholders, and I am pleased to Issue with Free Warrants, followed by a excess application of 11.67%, indicating report that the Board of Directors have bonus issue for shareholders. The strong investor confidence. The Rights proposed a first and final single-tier Rights Issue priced at RM1.42 per Shares with Warrants was listed on the dividend of 6.5 sen per ordinary share Rights Share is on the basis of 3 shares Main Market of Bursa Malaysia of RM0.50 each in respect of the for every 10 existing shares held. This Securities Berhad on 26 February 2015. financial year ended 31 December represents a discount of 37.7% to the 2014, subject to shareholders’ approval 5-day volume weighted average The Rights Issue raised approximately in the upcoming Annual General market price (VWAMP) prior to the RM629 million, where proceeds of up Meeting. This is consistent with the announcement of the price-fixing date, to RM530 million will be primarily used Group’s dividend payout policy of a or 31.7% to the Theoretical Ex-Rights for land acquisition and property minimum of 40% of net profit since Price “TERP”. There are 3 free development activities, and the 2006, indicating the strong and detachable Warrants for every 10 balance for general working capital of consistent financial performance of the Rights shares subscribed for and a the Group as well as payment for the Group. I am proud to acknowledge Post-Rights Bonus of 1 bonus share for expenses in relation to the rights issue. that the Group’s ability to consistently 4 existing shares held at an This has placed us in a robust position reward its shareholders over the years Entitlement date to be fixed. with a healthy balance sheet to speaks volumes of our uninterrupted continue with our expansion plans via profit growth, which will continue to landbanking exercises in choice be driven by our continued locations with good catchments and explorations and acquisitions of development activities. selective strategic landbanks for expansion. 027
Mah Sing takes cognisance of its CORPORATE responsibility towards society as a corporate citizen that has firmly RESPONSIBILITY established its presence in Malaysia. C
We subscribe to the fact that we can O make a positive difference to the RE FACTS community, especially so in times of need.
The catastrophic floods which hit the nation in 2014 saw the Group’s immediate action to aid the flood MESSAGES COMMUNITY victims through the Mah Sing Foundation, which contributed a total of RM400,000 to four organisations for the immediate relief and rehabilitation of the affected communities. This included the Crisis Relief Management Squad of MCA, Red Crescent Malaysia, A
Tzu Chi Malaysia and Tesco Malaysia’s C TIVITIE Flood Relief Convoy Mission. The
Group also extended its reach to S ENVIRONMENT alleviate the suffering of Palestinians in war-torn Gaza during the month of Ramadan via a donation of RM300,000 to the 1Malaysia Ramadan humanitarian mission to Gaza. GO VERNANCE
Mah Sing Foundation’s annual Charity Dinner, themed “Building Lives LOCAL COMMUNITY Together”, saw a record-breaking EVENTS RM3.38 million raised for charity, courtesy of contributions from
corporate and business partners, while FINAN The catastrophic floods our Group Managing Director cum C
Group Chief Executive Tan Sri Dato’ Sri IAL
which hit the nation in 2014 S Leong Hoy Kum also gave a personal saw the Group’s immediate contribution. The night’s proceedings action to aid the flood also saw the disbursement of funds ADDITI victims through the totalling RM510,000 to 22 charities. O
Mah Sing Foundation, NAL INF WORKPLACE These are the surface of the numerous which contributed initiatives that the Group has driven to O
a total of RM400,000 make a difference to the community. RMATI to four organisations Going beyond Bursa Malaysia’s Listing for the immediate relief Requirements to report on the CSR ON initiatives, we have a detailed and rehabilitation of the Sustainability Report from pages 58 to
affected communities. 89 which provides further information NO
of our efforts in the long-term TICES sustainability of economic vitality, social relationships with stakeholders and environmental compliance. 028
Community Environment Local Community Events The Group firmly believes in adding Our customers represent a key value to the communities in which we Southville City@KL South component of our business operations, operate in, and we aspire to make a and the Group has a strategic plan to MAH SING Group Berhad Annual Report 2014 difference in the lives of the deserving. effectively engage our valued customers and to promote community In 2014, the Group via the Mah Sing living within our residential Foundation actively supported the developments. betterment of quality of life for the deserving. These included The establishment of the Mah Sing contributions to the Pudu Rotary Group Berhad Auxiliary Police force led Charity Foundation’s “Stop Hunger the charge on this front, with the Now” project and also support to the objective of safeguarding residents of Kechara Soup Kitchen Society’s mobile the Group’s residential projects. The clinic facility to help homeless and Royal Malaysia Police approved a total urban poor on streets in Johor Bahru. of 312 auxiliary police officers in Quality, the Hallmark of Excellence January 2014 to the Group. The officers On the educational front, the Mah Sing will undergo a 9-weeks training course Foundation contributed to 8 schools in as part of their programme in Johor Bahru to build and upgrade preparation to serve the Mah Sing facilities such as computer rooms, community. toilets and libraries to benefit its pupils. Under its Scholarship In raising awareness on Amyotrophic Programme, the Mah Sing Foundation Lateral Sclerosis (ALS), the Group also also offered scholarships to 4 students The Group recognises that the Earth’s initiated the Mah Sing Ice Bucket from Tunku Abdul Rahman University natural resources are essential in many Challenge. Staff, their friends and College (“TAR-UC”). aspects of the development industry, family members took part in the and is committed towards challenge held at the Icon City Sales safeguarding the environment in our Gallery, Petaling Jaya. The Mah Sing business operations. Foundation topped up RM100 for every RM20 contribution per person This is embodied through the Group’s who took up the challenge. Proceeds various green efforts in our project of the initiative, which amounted to designs, layouts and innovations in RM33,330 were donated to the property development products. Mah Cerebral Palsy Children’s Association of Sing’s environmental management is Penang (both ALS and Cerebral Palsy based on the Group’s Environmental are classified as motor neurone Management Plan (EMP) derived from disorders). the recommendations in the Environmental Impact Analysis (EIA). In encouraging social and sporting Many of the Group’s projects received activities, the Mah Sing team also took Green certifications in 2014, which part in The Edge-Bursa Malaysia Kuala include Icon City in Petaling Jaya, M Lumpur Rat Race 2014, a run jointly City in Jalan Ampang, Lakeville organised by The Edge-Bursa Malaysia Residence in Taman Wahyu, Icon to raise funds for charity. The Group Residence in Mont Kiara, Southbay also contributed to the Malaysian Fo Plaza in Penang and Ferringhi Guang Buddhist Association (Cawangan Residence in Penang. Bandar Baru Klang) in support of their Charity Walk to encourage people to M City, Jalan Ampang lead a healthy lifestyle. 029
Workplace A company is only as good as its people – a motto that the Group subscribes to in recognising and developing its employees for the success of the organisation. Mah Sing Foundation’s annual Charity Dinner, This laid the path to the introduction themed “Building Lives of the LEAD Project (“Leadership Excellence, Advancement and Together”, saw a record- Development”), which was breaking RM3.38 million implemented for outstanding talents in raised for charity, courtesy preparing them for leadership roles. of contributions from The Group also continued in its investment of various leadership and corporate and business skills training programmes for all staff, partners, while Group with the aim of nurturing and honing Managing Director cum employees’ skills set. Group Chief Executive Work-life balance is a term that Tan Sri Dato’ Sri Leong Hoy resonates positively with the Group, Kum also gave a personal and with the official launch of the Mah contribution. Sing Sports Club in 2014, our employees took part in a variety of exciting activities throughout the year including a Bowling Competition, “Escape Room” inter-department competition and FIFA World Cup 2014 activities. 030
AWARDS & ACHIEVEMENTS The Group continued to blaze a trail of achievements in 2014, with recognitions received on MAH SING Group Berhad Annual Report 2014 the corporate, branding and projects platform.
CORPORATE A true show of the Group’s strong ASIA RESPONSIBILITY financial performance and standing in ENTREPRENEURSHIP AWARD AREA CORPORATE GOVERNANCE ASIA Malaysia as a leading premier lifestyle • Company’s Investment in People • Corporate Governance Asia Annual developer. Recognition Awards – 4th The Group is comprehensively invested in iProperty.com PEOPLE’S CHOICE consecutive win the learning and development of its AWARDS • 5th Asian Corporate Director people. It is an honour for the Group to Quality, the Hallmark of Excellence Recognition Awards • Developer of the Year be recognised in AREA, which is • Asian Excellence Recognition organised by Enterprise Asia, a non- Awards for Best Investor Relations Based on the online voting of governmental organisation in pursuit of Company in Malaysia approximately 10,000 participants, this entrepreneurship development across • Asia’s Best CEO (Investor Relations) recognition is testament of the public’s the region. confidence in the Group. These 4 recognitions speak volumes of the Group’s corporate governance MALAYSIAN RESERVE PROPERTY BRANDING practices as Corporate Governance Asia PRESS AWARDS is the region’s most authoritative journal As a strong and established brand • Most Outstanding Developer of the on corporate governance. name, the Group continued to receive Year recognition for its efforts to further EUROMONEY elevate its branding in the property Yet another recognition of the company’s development sphere. • Best Developer Overall in Malaysia solid performance and standing as a (4th win) quality developer. BRANDLAUREATE • Best Developer in Industrial/ • Lifetime Achievement Brand Icon Warehouse in Malaysia (3rd win) MALAYSIA HR AWARDS MIHRM Leadership Award • Overall Best Managed Company in • Silver Award • BrandLaureate Property Man of the Malaysia Year Recognition of the Group’s commitment • The BrandLaureate’s President’s The Group prides itself on these awards in developing its people to be the driving Award as it is based on opinions of real estate force of the company. advisors, developers, investment Group Managing Director cum Group managers, corporate end-users and ASIA HRD Chief Executive Tan Sri Dato’ Sri Leong banks in over 60 countries and regions Hoy Kum was inducted into the Asia worldwide. • Contribution to the Society Award Pacific Brand Foundation’s Hall of Fame with his conferment of the Lifetime THE EDGE BILLION RINGGIT CLUB An honour in recognition of Group Managing Director cum Group Chief Achievement Brand Icon Leadership • Malaysia’s Highest Profit Growth Executive Tan Sri Dato’ Sri Leong Hoy Award, in addition to being named the Company (Property & REIT) (5th Kum’s continued efforts and direct Property Man of the Year by year running) participation in education and learning BrandLaureate, a branding foundation • The Edge’s Top 10 Property projects for the community. that aims to improve branding practices Developers Awards and standards throughout the world. 031
PUTRA BRAND AWARDS MALAYSIAN RESERVE PROPERTY real demand will continue to be • Putra Brand Awards – Property PRESS AWARDS strong. The Group will continue to Development (4th consecutive year) • Most Iconic Residential Value focus on its strategy of providing Proposition (Mixed Development) acquirable homes to the mass market,
– Southville City@KL South evident from our mid-range of mass C Endorsed by MATRADE and supported by O RE FACTS the Branding Association of Malaysia, the • Most Iconic Residential market products like Savanna Executive Group’s recognition for the 4th Development – Lakeville Residence, Suites in Southville City@KL South, link consecutive year in the Putra Brand Taman Wahyu homes in M Residence 1 & 2 in Awards demonstrates the company’s Rawang, and apartments in D’sara robust branding standing. At this juncture, I would like to Sentral, Sungai Buloh. congratulate Tan Sri Dato’ Sri Leong Hoy Kum on his achievements in There is still a large supply-demand PROJECTS steering the company’s continued gap as supply growth for properties MESSAGES success, and on his awards received in has been on a decreasing trend since The Group’s projects continued to 2014. These accolades are testament to 2003, with Malaysia’s supply growth in excel, with numerous nominations and the commitment and dedication of the 2014 at only 2.3% according to the awards wrested by its projects entire team in Mah Sing in its strive for Information Centre (NAPIC) National nationwide. quality and excellence in all aspects of Property. The strong fundamentals its business operations. driving the property market’s growth
SOUTHEAST ASIA PROPERTY A
in recent years have not changed – for C AWARDS MALAYSIA SEAPA example a younger population leading TIVITIE
• Best Developer for Mah Sing Group QUALITY AT THE FOREFRONT to new household formation, rising S middle income group, supply demand Berhad; The Group looks forward to surge gap, continued urbanisation, attractive • Best Luxury Condo Development ahead in 2015, and remains confident mortgage rates and stable employment (North Malaysia) for The Loft@ that it will achieve excellence yet conditions. In other words, we are Southbay; again. The Group will also continue on • Best Luxury Condo Development confident that property will continue GO its journey of quality, and deliver VERNANCE to be the preferred wealth preservation (South Malaysia) for Meridin Suite outstanding products by ensuring that and investment option for the Residences, The Meridin@Medini; all aspects of its business operations year ahead. • Best Mid-Range Condo adhere to the highest standards. Development (Central Malaysia) for In closing, I would like to thank our Garden Plaza; New phase launches in 2015 will management and staff for their • Best Housing Development (Central feature Savanna Executive Suites@ relentless pursuit of excellence which Malaysia) for Garden Residence; Southville City, Lakeville Residence in FINAN has contributed to the exponential • Best Residential Development (East Taman Wahyu, D’sara Sentral in Sungai C
growth of Mah Sing. IAL Malaysia) for Sutera Avenue; and Buloh, M Residence 2@Rawang, • Best Luxury Condo Development Ferringhi Residence 2 in Penang, S On behalf of the Board, we would also (North Malaysia) for Ferringhi Meridin Bayvue@Sierra Perdana and Residence like to convey our sincere appreciation
Sutera Avenue in Sabah. ADDITI to our shareholders, business associates, customers, the Government BCI ASIA With the acquisition of 3 new lands in O and the local authorities for their NAL INF • BCI Asia Top 10 Developers Awards 2014, namely the Shah Alam, Puchong continued confidence and trust in and Seremban Township land, the O
Mah Sing. RMATI ASIA PACIFIC PROPERTY AWARDS Group anticipates to preview the • Best High-Rise Architecture – M City Executive Suites in Festival Lakecity With passion and determination, we ON (Puchong) in 2015, with plans in the look forward to forging new frontiers iProperty.com PEOPLE’S CHOICE pipeline for link homes in Seremban in the year ahead. AWARDS and also the launch of Bandar Meridin
• Best Commercial Development East in Pasir Gudang, Johor. NO
– Icon City TICES The coming year will also see the Jen. Tan Sri Yaacob bin Mat Zain (R) implementation of the Goods & Chairman Services Tax (GST), but we believe that 032 GroupMa
The Group broke records yet again on many fronts as we celebrated our 20th Anniversary as Malaysia’s premier lifestyle developer in 2014. It was a stellar achievement for the Group as we outperformed our previous year’s total sales volume by registering a 14% growth to hit RM3.43 billion, the Group’s highest sales figure to-date. 033 an ging Director’s Report
Tan Sri Dato’ Sri Leong Hoy Kum Group Managing Director/ Group Chief Executive 034
Clover@Garden Residence, Cyberjaya
Mah Sing’s unbilled sales position continued to advance to approximately RM5.3 billion as at 31st December 2014, which is equivalent to approximately 2 times the revenue recognised from the property division in 2014. This ensures the Group of near term revenue visibility and steady streams of cash flows and liquidity.
Our strategy of targeting mainly in the Klang Valley and products priced below RM1 million to provide more acquirable housing have been instrumental in the MAH SING Group Berhad Annual Report 2014 strong sales figures. In 2014, 87% of the Group’s planned residential projects launches were priced below RM1 million, 81% below RM700,000 and 45% below RM500,000. Comparatively for planned residential launches in 2015, 84% will be priced below RM1 million, 71% of which are below RM700,000 and 44% of which are below RM500,000.
Forging the way for future developments, the Group acquired 3 new lands in Shah Alam, Seremban and Puchong in 2014 with a combined gross development value of RM19.3 billion. The Group has also been granted the option for an additional 171 acres adjacent to the Puchong land. The Government’s announcement in the 2015 Budget Revision to maintain infrastructure development projects in addition to MRT 1 such as MRT 2, LRT 3, and other major highways is expected to come as a boon for Quality, the Hallmark of Excellence these landbanks which are expected to preview in 2015.
With the acquisitions, our total remaining undeveloped landbanks stands at 3,822 acres (including the Puchong land option). As at 31 December 2014, our unbilled sales combined with remaining GDV, including the Puchong land option is approximately RM65 billion. Also, with the RM629 million rights proceeds to further enhance our financial strength, the Group is able to leverage on its healthy balance sheets to continue on and take advantage of opportunities arising for quality and selective landbank acquisition.
3 new lands combined gross development value of
RM19.3 billion CORE FACTS MESSAGES ACTIVITIES GOVERNANCE FINANCIALS ADDITIONAL INFORMATION NOTICES 035 036
SOLIDIFYING OUR LEADERSHIP With a focus on quality and value, the Group surged ahead to achieve a strong MAH SING Group Berhad Annual Report 2014 2014, registering a 44.8% increase in revenue to RM2.9 billion, while net profit increased 20.9% to RM339.2 million. This was attributable to the higher work progress and sales from our ongoing development projects which include: Quality, the Hallmark of Excellence Greater KL and Klang Valley LEGENDASOUTHBAY CITY, PENANG • Landed residential developments: Garden Residence and Clover@Garden Residence in Cyberjaya, M Residence in Rawang, Kinrara Residence in Puchong. SAVANNA EXECUTIVE SUITES AT SOUTHVILLE CITYKL SOUTH • High rise residential developments: Savanna Executive Suites@Southville City, Icon City in Petaling Jaya, Garden Plaza in Cyberjaya, M-City and M-Suites in Jalan Ampang, Icon Residence in Mont’ Kiara, Lakeville Residence in Taman Wahyu, D’sara Sentral in Sungai Buloh.
• Integrated commercial developments: Star Avenue@D’Sara, StarParc Point in Setapak.
Penang Island • Landed residential development: Lagenda@Southbay.
• High rise residential developments: Southbay City in Batu Maung and Ferringhi Residence in Batu Ferringhi. 037
Iskandar Malaysia & Johor Bahru • Landed residential development: Austin Perdana, Sri Pulai Perdana 2, Sierra Perdana. C O • Integrated commercial RE FACTS development: The Meridin@Medini.
• Industrial development: Mah Sing iParc@Tanjung Pelepas.
Kota Kinabalu, Sabah • Commercial development: Sutera MESSAGES Avenue in Kota Kinabalu.
As we enter the New Year, the Group has a line-up of new projects and phase launches in the pipeline which is anticipated to contribute positively to A
the Group in 2015. These include: C TIVITIE
Greater KL and Klang Valley S • Landed residential developments: M RESIDENCE CLUBHOUSE RAWANG M Residence and M Residence 3 in Rawang, link homes in the Seremban Township land. GO
• High rise residential developments: VERNANCE Savanna Executive Suites@ Southville City, Festival Lakecity in Puchong, Lakeville Residence in Taman Wahyu, D’sara Sentral in Sungai Buloh. FINAN Penang Island C
• High rise residential developments: IAL
Ferringhi Residence 2 in Batu S Ferringhi, Icon Residence, Georgetown. ADDITI Iskandar Malaysia & Johor Bahru O • High rise residential development: NAL INF Meridin Bayvue@Sierra Perdana. O RMATI • Landed residential development:
Bandar Meridin East in Pasir ON Gudang.
Kota Kinabalu, Sabah NO
• High rise residential development: TICES The Residences, Sutera Avenue in Kota Kinabalu. 038
STRONG GROSS DEVELOPMENT VALUE GDV PIPELINE As at 31 December 2014, the Group’s GDV pipeline stands at RM65 billion (including the Puchong land option) in the 4 development hotspots of Klang Valley, Penang, Johor and Sabah. We are confident of that our portfolio of right products at the right locations, the Group will continue to deliver a commendable performance in 2015.
MAH SING Group Berhad Annual Report 2014 Strategic location mix & Broad Product Offerings
Remaining GDV (3,651 acres) Unbilled Sales Total RM43.8bn RM5.3bn RM49.1bn*
4% 3% 6% 22% 15% 40% Quality, the Hallmark of Excellence 75% 10%
25%
STRATEGIC LOCATION MIX BROAD PRODUCT OFFERINGS
Greater KL and fringes (24 projects), 36.7bn Industrial, 1.5bn
Johor (7 projects), 7.5bn Landed Residental, 10.5bn
Penang (4 projects), 3.1bn Condo, Apartments, 4.9bn
Sabah (2 projects), 1.8bn Serviced apartment, SOHO, 12.5bn
Commercial (shops, offices, retail, hotel, SOVO), 19.7bn
*RM65bn with the Puchong option land
Attractive Pricing Points
45% 36% RM500k-RM700k 6% RM700k-RM1m 2014 Target Launch 11% RM1m-RM3m 2% >RM3m 87% 87% Residential Products Priced RM1m & below 039 Lakeville Residence, Taman Wahyu Plastics The plastics segment continued to contribute positively to the revenue and operating profit of the Group. C Revenue grew by 2.3% from O RE FACTS approximately RM235.4 million to approximately RM240.9 million as a result of higher pallet sales. Mah Sing’s plastics division comprises of operations in both Malaysia and Indonesia. In 2014, as part of its MESSAGES continuous improvement to produce quality products the plastics division made notable investments to enhance production efficiency in its operations, new product models and improvements on its information system. A C Property Development TIVITIE The property division performed above S expectations in 2014, supported by its strategy of providing acquirable housing in strategic locations. Strong take-up rates were seen for the GO Savanna Executive Suites in Southville VERNANCE City, representing 23% of the Group’s total sales in 2014 with its affordable 3-bedroom suites from 956 sq ft and from KLCC, Lakeville Residence caters an estimated gross development value priced from RM338,000. The first 5 to a wide catchment of the matured of RM5 billion – the Group’s largest towers of Savanna Executive Suites townships of Kepong, Selayang, Batu township to date and its 5th township saw a remarkable 100% take up rate, Caves, Gombak and Segambut, with in Johor. Proposed components of while Block 6 and Block 7 received close proximity to the Taman Wahyu Phase One of the township is FINAN KTM station. anticipated to include landed double- very encouraging response to-date. C storey link homes indicatively priced IAL Plans are underway for the targeted S launch of the final block of Savanna 2014 also marked the official launch of from below RM400,000. Executive Suites in 2015. Southville D’sara Sentral located in the vibrant City@KL South is anticipated to hub of Sungai Buloh, a fully integrated Moving forward, the Group will ADDITI continue as the “hot seat” property of development with a total gross continue to focus on offering quality development value of RM901 million. products as part of its journey of O the Group in 2015. NAL INF The launch of its Serviced Residences excellence, banking on strategic also saw very positive response from locations, designs and concepts to suit Another star performer was Lakeville O Residence in Taman Wahyu which was its strategic and accessible location, the burgeoning demands of the RMATI which is just diagonally across the modern market. officially launched in 2014, comprising ON of 6 towers of residential and Kampung Baru Sungai Buloh MRT commercial components with a total Station, the second station on the The Group’s focus on landbanking has gross development value (GDV) of Sungai Buloh-Kajang MRT line. continued to be an integral part of its approximately RM1.5 billion. Its strategic business development, and in NO TICES Residential Suites component, priced A key milestone was the completion of 2014 we once again broke the record, from RM561,800 with build-ups starting our acquisition of the 1,352 acres with the highest ever GDV of RM19.3 from 978 sq ft received overwhelming freehold land of Bandar Meridin East in billion from the 3 new lands acquired response. Approximately only 7km Pasir Gudang, Johor in July 2014, with in SSAAS in Section 13, Shah Alam, Puchong and Seremban. 040 MAH SING Group Berhad Annual Report 2014 LANDBANKING IN 2014 SSASS Golf Course, Shah Alam Quality, the Hallmark of Excellence – This elite development has a planned preview in 2016 – Proposed development for Superlink, Linked Semi-D, Semi-D, Bungalows and Serviced Apartments Seremban Township Land – Proposed township development for terrace, superlink, Semi-D and bungalow homes Puchong Land – Located in the strategic and bustling Commercial Business District of Puchong – Proposed integrated mixed development called Festival Lakecity with a planned preview in 2015 041 Acquisition Land size Cost GDV Projects Date (Acres) (RM’mil) (RM’mil) C O RE FACTS KGSSAAS Golf Mar-14 85.43 327.48 2,501 Course, Shah Alam Seremban Aug-14 960 359.56 7,500 Puchong Aug-14 88.7 656.90 9,300 2014 1,134 1,343.94 19,301 MESSAGES FORGING AHEAD WITH A FOCUS newly acquired landbanks of Shah ON QUALITY Alam, Seremban and Puchong will also continue to cater to the mass market As we evolve as a company, the in line with our strategy, backed by a expectations of our customers and prudent fiscal discipline. A C The Coastal@Southbay City, Penang society have also evolved. This is TIVITIE especially relevant to us as a The Group’s balance sheets have developer, as we see ourselves as not S remained strong with a high cash pile merely building houses for people, but of approximately RM639.2 million and as building homes which promote a net gearing at 0.36 times as at thriving communities. Our 31 December 2014, which is below the responsibility to deliver on this is the internal target of 0.5 times. This has GO key driver for our continued journey of VERNANCE placed us in a strong position to quality in all aspects of our business continue with our expansion plans via operations. landbanking exercises and development activities, supported by A key initiative in 2014 was the setting its unbilled sales locked in at up of a Quality Forum to further RM5.3 billion. enhance our commitment towards ensuring that quality remains at the FINAN With proven strategy and execution forefront of everything that we do in capability, a well-established brand C Mah Sing. This Quality Forum has IAL name, and right portfolio of products S outlined key initiatives internally to at different stages of project life cycles, enhance our quality in customer the Group has the flexibility and is service, our developments and also in well-positioned to sustain its growth ADDITI our people. We firmly believe that this in 2015. is not a privilege, but an expectation O NAL INF of us as a premier lifestyle developer. Together as a team, we look forward Indeed, the numerous accolades to charting new territories in the O awarded to the Group last year for RMATI year ahead. many of its projects are a ON demonstration of the company’s commitment towards this. th The Group’s 20 year anniversary NO celebrations in 2014 was not just a TICES milestone of success, but also a Tan Sri Dato’ Sri Leong Hoy Kum testament of the Group’s strong Group Managing Director/ financial standings and sustainability Group Chief Executive for many more years to come. Our Opera The 428-acre Southville City@KL South is a master planned development, offering a premium lifestyle away from the hustle and bustle, yet is near to the city centre, easily accessible with 6 major highways and a direct interchange. ationsReview of Southville City@KL South 044 Earlier in 2014, the Company saw the The Savanna Lifestyle shops and the launch of upgrader homes with Avens Savanna Boulevard shops are expected Residences, which is Phase 2 of to cater to the projected population of Southville City. Avens Residences 15,000 from Savanna Executive Suites comprises 196 limited edition 2 ½ – and 800 from Avens Residence. storey and 3-storey link homes, the Savanna Plaza, which is Phase 3 of only link home precinct in Southville Mah Sing’s Southville City comprising City. To date, the response for Avens of lifestyle apartments, heritage shops, MAH SING Group Berhad Annual Report 2014 Residence has been encouraging at boutique offices & activity retail has approximately 65% sold. opened for registration in December 2014. GREATER KL & KLANG VALLEY Savanna Executive Suites at Southville City@KL South Southville City@KL South In the year under review, Southville City@KL South took centre stage with the ground-breaking ceremony for Southville City@KL South’s direct interchange access which was graced Quality, the Hallmark of Excellence by Minister of Works YB Datuk Seri Haji Fadillah Bin Haji Yusof on 12 November 2014. The new access from the North-South Highway will open an access leading directly into and out of Southville City. The interchange is estimated to be completed by 2018, coinciding with the vacant possession of Southville City’s first phase development – the Savanna Executive Suites – which are 3 room apartments with built-ups from 956 sq ft. The Company is pleased to note that to-date, Tower A1, A2, B1, B2 and C2 are 100% sold whilst Tower C1 is 70% sold. Southville City launched its Savanna Executive Suites priced from RM338,000 in March 2014, and the suites continue to sell well with its minimum price starting at RM350,000 since October 2014. This is testament that the market is still on the lookout for properties within the affordable price range despite the 4% increase in price in less than a year as compared to property prices in Kuala Lumpur and Petaling Jaya. The increase in price is also testimony to the credible capital appreciation for Southville City properties. 045 Icon City, Petaling Jaya A sprawling urbanity in the heart of Petaling Jaya, Icon City is a mixed integrated commercial project situated C at the intersection of the Federal O RE FACTS Highway and the Damansara-Puchong Expressway (LDP). Icon city comprises a combination of a Central Park, Icon Residenz (serviced residences), iSoVo (Small Office Versatile Office), Gourmet Street (1 and 2-storey retail shops) and a 9-storey office tower sitting on a MESSAGES 4-level retail podium with a total of more than 40 amenities available to cater for the future burgeon of occupants. Its strategic location will be further capitalised upon by a direct ramp from the Federal Highway leading into Phase 1 of the project, Icon City comprises a A and will improve ingress and egress C TIVITIE into and from Icon City. combination of a Central Park, Icon Residenz (serviced S In 2014, Icon City saw approximately 90% of its serviced residences, iSoVo residences), iSoVo (Small and Lifestyle Shop-offices sold. Tower 1 Office Versatile Office), and Tower 2 of its serviced residences, with built-ups from 569 sq ft to 1,795 Gourmet Street (1 and GO VERNANCE sq ft and 675 sq ft to 1,405 sq ft 2-storey retail shops) and a respectively are anticipated to be completed in 2016. Both the iSoVo 9-storey office tower sitting (built-ups from 436 sq ft to 1,094 sq ft) on a 4-level retail podium and Lifestyle Shop-offices are slated to be completed in 2015. with a total of more than 40 amenities available to cater FINAN In addition to the completion of its for the future burgeon of C earthwork and piling stages, Icon City IAL opened its doors to its newly occupants. S renovated sales gallery in August 2014, generating a huge buzz from both ADDITI individuals looking for residential properties and also businesses seeking O to establish their presence in the NAL INF strategic location which will be O accorded Multimedia Super Corridor RMATI (MSC) status in future. Mah Sing’s 20th Anniversary celebrations held at Icon ON City further generated strong interest in the project. NO TICES 046 Phase 4A’s superlink homes and Phase 4B’s Semi-Ds have opened for sale and the 173 units of 22’x 80’ 2-storey superlink homes are completed. This phase has an August 2015 target for completion. Phase 4B’s 2-storey 40’x85’ Semi-D homes have been in progress with 95% of the building works done, MAH SING Group Berhad Annual Report 2014 and targeted to hand over in the second quarter of 2015. Meanwhile, M D’sara Sentral, Sungai Buloh Avenue, the commercial component of Strategically located just diagonally the township, comprises 108 units of 2 across the Kampung Baru Sungai and 3-storey shops, and saw Buloh MRT Station (the second station encouraging take-ups with limited on the Sungai Buloh-Kajang MRT line) units left for sales and is targeted to with a direct link bridge to the MRT hand over in June 2015. Station, D’sara Sentral is a mixed development of D’Style Shops (single Phase 6B’s 56 units of 22’x 80’ and dual unit lifestyle retail shops); 2½-storey canal link homes is the D’SoVo Suites (Smart Office Versatile residential component which was Quality, the Hallmark of Excellence Office) and D’Residenz Suites newly commenced, with an estimated (service residences). built-up of 3,168 sq ft, targeted to launch in the second half of the year. At its official launch in 2014, the D’Style Shops offered units with built-ups ranging from 388 sq ft to 9,730 sq ft, priced from RM558,000 onwards. The D’Sovo Suites offered units with built-ups starting from 504 sq ft priced from RM380,000 onwards; while D’Residenz apartments offered units with built-ups starting from 809 sq ft priced from RM548,000 onwards. 2014 saw the completion of D’sara Sentral’s earthwork and piling stage, and has seen an overall 80% of its D’SoVo, D’Style Shops and D’Residenz Suites sold. A collaboration with The One Academy as part of an Interior Design Competition in November 2014 laid the path for the opening of its new sales gallery in March 2015. M Residence, Rawang The success story of M Residence continues in 2014 with Phase 1 and Phase 2, which comprise 2-storey link homes, handed over in August 2014 while Phase 3, comprising 2-storey superlink homes, met the target Vacant Possession (VP) in January 2015. D’sara Sentral, Sungai Buloh 047 M Residence 2, Rawang M Residence 2 is Mah Sing’s second project in Rawang, situated 1km away to the south of M Residence. M Kinrara Residence, Puchong C Residence 2’s earlier phases – Phase 1, O RE FACTS Alpine and Phase 2, Birch were both launched. M Residence 2’s Phase 3’s Caspia is offering 3 types (C1, C2A and C2B) of 2-storey cluster garden homes. Type C1 with a built-up area of 2,193 sq ft MESSAGES was launched in January 2014 whereas C2A and C2B with a built-up area of 2,205 sq ft has been opened for preview. A C TIVITIE S GO VERNANCE The entire project is at a development Kinrara Residence, Puchong stage with 80% of earthworks Kinrara Residence became home to completed. Alpine and Birch are both approximately 628 families in 2014 undergoing building works which are with Phase 2B, 2C and 3 at an overall targeted to complete by May 2016. 91% sold. The preceding phases of The construction of the main drain is Kinrara Residence were completed and now at 32% with a target of June 2015 handed over in 2013. The final phase FINAN for completion. The Recreational (Phase 4A), known as Ambrosia@ C Clubhouse will be ready by the end Kinrara Residence offers 66 units of IAL of 2015. 3-storey Superior Semi-Detached S homes with a built-up area of 4,468 sq M Residence 3, Rawang ft; and 79 units of 3-Storey Executive ADDITI M Residence 3 is less than 5km away Bungalows with built-up areas from from M Residence and M Residence 2. 5,688 onwards. O NAL INF There are plans in place for 2-storey link homes, 2-storey Semi-Ds and Ambrosia@Kinrara Residence received O 2-storey shops. The first phase of its Certificate of Completion and RMATI 2-storey link homes is targeted for Compliance (CCC) in March 2015 with ON preview by the first quarter of 2015. vacant possession hand over to its respective owners in April 2015. NO TICES 048 M City, Jalan Ampang Located along Jalan Ampang, M City has seen exponential reception from property seekers interested in an Embassy Row address. Coupled with MAH SING Group Berhad Annual Report 2014 its award-winning multi thematic gardens concept and its strategic Garden Residence, Cyberjaya location, just 5km away from KLCC and opposite a proposed MRT station, The integrated township of Garden M City has to-date seen an overall Residence is reaching its full potential take-up rate of approximately 87%. with four of its precincts 99% sold. M City comprises of a retail podium The Clubhouse is also fully operational of 32 units, 401 units of SOHOs with The Promenade@Garden (Small Office Home Office), 1,104 units Residence – a lakefront facility of Serviced Residences and 48 units designed to be the top address for of Sky Residences. shopping, dining and entertainment Quality, the Hallmark of Excellence – scheduled to be completed Block 1 of M City, comprising SOHO by 2015. units have seen a completion of 75% to-date, with structural works reaching During the year under review, Clover@ Level 36, and architectural and M&E Rooftop Garden of Icon Residence, Mont’ Kiara Garden Residence, the fifth and final works currently in progress. It is precinct has been completed and targeted for handover in 2H 2015. handed over to its respective owners. Similarly for Block 2 of M City, Lakeville Residence, Taman Wahyu Located adjacent to Garden Residence, comprising of Serviced Residences, The RM1.5 billion GDV Lakeville Clover@Garden Residence was poised structural works have reached Level Residence is strategically situated in to tap on the spillover demand of 36, with a completion of 70% to-date the prosperous stretch of activities Garden Residence’s landed residential and a targeted handover in 2H 2015. along Jalan Kuching, well connected to homes, particularly the Semi-D phase. Block 3 of its Serviced Residences has Jalan Ipoh, Jalan Kepong, Duta-Ulu Clover@Garden Residence offers 231 reached Level 20 with 35% completion Kelang Expressway (DUKE) and the units of 2 and 3-storey Semi-D homes to-date, with an expected handover in Middle Ring Road (MRR) 2. with spacious floorplans starting from 1H 2016 while its Sky Residences 3,213 sq ft on a land size from 40’ x component has reached Level 35 and Lakeville Residence comprises 6 towers 80’. Residents are given an option of 36. The latter is targeted for handover of residential and commercial either a uniform layout or a split level in 1H 2016. M City’s retail units have components designed with a lakeside layout for extra flexibility. also seen its structural works living theme. A grand opening completed and is targeted for partial ceremony was held for its sales gallery Garden Plaza, located within Garden handover in second half 2015. in August 2014 with over 9,000 guests Residence, is scheduled for vacant treated to a day of exciting activities. possession handover by mid of 2015. In 2014, M City was also accorded the The public was also invited to view Garden Boulevard Retail Shops, the Highly Commended Best High-Rise the 3.11 acres of nature-themed facility commercial component of Garden Architecture at the Asia Pacific podium replica, one of the largest in Plaza, comprises premier retail shops Property Awards, a demonstration of and SoFo (Small office Flexible office) the project’s success. units. Garden Boulevard has 58 units of retail and SoFo units stretched over two towers, namely the Cambridge and Oxford Towers. Cambridge Tower, Oxford Tower and Harvard Towers, which consists of 1,149 units of lifestyle suites are 100% sold. 049 C O RE FACTS Garden Boulevard’s Cambridge Tower, Oxford Tower and Harvard Towers, which consist of MESSAGES 1,149 units of lifestyle suites are A C 100% sold TIVITIE S Kuala Lumpur. The first four blocks Icon Residence, Mont Kiara GO comprising Tower A, B, E & F with a Nestled within the serenity of the VERNANCE total of 1,244 units of serviced affluent Mont Kiara neighbourhood, apartments was launched and saw Icon Residence offers low-density living 85% take-up at the end of the launch sanctuaries with only 290 units of day. The serviced apartments offer serviced residences spread through units with built-ups ranging from 978 3 towers with only 2 to 6 units per sq ft to 1,365 sq ft, priced from floor, served by 3-4 lifts in each tower. RM561,800. Its lush landscaping, soothing water FINAN features and state-of-the-art C Additionally, the Group opened architecture are marks of its IAL S another 2 towers (Tower C & D) for commitment to offer an unforgettable registration of interest, which are luxurious living experience. targeted to be launched in the second ADDITI half of 2015. There are also limited The project presents a collection of units of the 3 & 4-storey lifestyle shops O signature homes which blend NAL INF fronting Jalan Sibu for sale, with spaciousness with comfort and built-ups starting from 4,651 sq ft, elegance. Every unit of the serviced O priced from RM3.5 million onwards. residences is a corner unit, with RMATI built-ups from 673 sq ft to to 4,719 sq ON The land is now undergoing piling ft, and partially furnished to further works, targeted to be completed in accentuate the luxurious living. the last quarter of 2015 while superstructure works will be NO anticipated in the first half of 2016. TICES M City Sky Bridge, Jalan Ampang 050 In September 2014, the first two The Loft@Southbay City JOHOR BAHRU/ISKANDAR towers consisting of 151 units of A freehold premier development that MALAYSIA serviced residences were completed promotes exclusive luxury living, The Meridin Bayvue@Sierra Perdana and handed over while the final tower Loft@Southbay City was launched in Capping on the successful and mature of 139 units of serviced residences January 2014. The foundation of the township of Mah Sing’s Sierra Perdana, were completed and handed over in entire component was completed in Meridin Bayvue@Sierra Perdana May 2015. the year under review whilst work for comprising 4 blocks of service the main building is underway. MAH SING Group Berhad Annual Report 2014 apartments on over 10 acres of freehold land was officially launched in PENANG The Loft@Southbay consists of two September 2014 in conjunction with towers that house 78 units of serviced Southbay Plaza@Southbay City Mah Sing Group’s 20th Anniversary residences each. This translates to only Sitting on arguably the most accessible celebration. Guests were entertained three units per floor serviced by two location in Penang, Southbay Plaza@ by local celebrities and given the private lifts. As an additional plus Southbay City’s construction is well on opportunity to experience the show factor, units at The Loft@Southbay its way with the completion of units available at the sales gallery boast of panoramic sea views, while structure for both Tower B and during the event. the high ceilings and high windows Trends@Southbay. For Trends@ feature in the units allow the views Southbay, the architectural works is in Meridin Bayvue@Sierra Perdana fronts to integrate seamlessly into the progress. Structural construction for the new coastal highway, providing an Quality, the Hallmark of Excellence spacious interiors. Tower A is also progressing well. easy access of only 10 minutes’ drive Launched in April 2012, residential to Johor Bahru City Center and the The Loft is scheduled to be completed suites at Tower A are 100% sold while by the end of 2017. Southbay City is take-up for Tower B is also one of the main contributors to the encouraging at 80%. Group’s overall sales in the year Meridin@Medini, Iskandar Malaysia under review. The Group is also pleased to note that that the retail podium at Southbay Ferringhi Residence, Batu Ferringhi Plaza is 90% taken-up. The entire development is scheduled for An epitome of exclusive living at Batu completion by April 2016. Ferringhi, the 10.9 acres Ferringhi Residence offers 200 units of condo Legenda@Southbay City villas in exquisitely landscaped and natural greenery enclave. The low With a land size of approximately density with 10 units per block and 2 28 acres, the RM329 million GDV units per floor development is Legenda@Southbay is one of Mah targeted for Certificate of Completion Sing’s first exclusive landed residential & Compliance (CCC) and Vacant projects on Penang Island. Phase 1 Possession (VP) by Q3, 2015. The which consists of 30 units of exclusive Group is pleased to note that to-date, bungalows have achieved Certificate of Precinct 1 is 88% taken up and is one Completion & Compliance (CCC) and of the main contributors to the Vacant Possession (VP) handover on Group’s overall sales in the year October 2014. Phase 2 is scheduled for under review. CCC and VP by May 2015, whilst units will be handed over to the purchasers Ferringhi Residence Precinct 2’s Resort by July 2015. Villas, comprising high-rise residential suites, is currently under planning In line with the handover of Phase 1, stage. Precinct 2 is scheduled to be the enclave’s clubhouse which was previewed by Q2, 2015. previewed in October 2014 is also fully operational. 051 CIQ. The development boasts a total and Rejuvenate concept. It will development comes furnished with 1,176 units of residential and 93 units comprise of both residential and air-conditioning in all rooms, built-in of commercial units, with Block A1 commercial components such as cabinets, cooking hood and hob, almost fully taken-up, and Block A2 residences, serviced suites, SoVo, wardrobe and water heaters. Residents selling fast. Offering units with lifestyle retail shops and hotel. can choose between several layout C O built-ups from 980 sq ft and priced options starting from 521 sq ft to RE FACTS from RM341,000 onwards, the Measuring 8.19-acres, Meridin@Medini 1,367 sq ft. development allows first time is an eye-catching project. Its core homebuyers an affordable entry point design principle was derived from the The foundation work for Phase 2 to a freehold property. There are plans character of human aspiration to reach which comprises SoVo, serviced suites underway for launch of the final 2 higher and nowhere is this more and lifestyle retail has completed and blocks of serviced apartments in 2015. evident than in the design language has now reached its 3-storey basement Meridin Bayvue is expected to be and architecture, where the curvilinear carpark. On December 2014, Mah Sing MESSAGES completed in the next 36 months. towers soar to the sky. Group Bhd appointed Topotels Sdn Bhd as the hotel operator to manage The Meridin@Medini Construction of Phase 1 comprising its Meridin Hotel Suites, offering Set within the Special Economic Zone Meridin Suites Residences is well on studios as well as one and two- of Malaysia’s Southern Corridor – track with the completion of a 3-storey bedroom suites. The hotel will be Medini Iskandar, The Meridin@Medini basement while Block A, B and C has targeted at both business and leisure A is an integrated development which is completed 5 levels of its 6-storey travellers from the country as well C TIVITIE conceptualised with a Live, Work, Relax podium. Every residence within the as abroad. S GO VERNANCE FINAN C IAL S ADDITI O NAL INF O RMATI ON NO TICES Ferringhi Residence, Batu Ferringhi, Penang 052 Kota Kinabalu Convention Centre (KKCC), Sabah MAH SING Group Berhad Annual Report 2014 Austin Suites@Austin Perdana Johor Bahru’s premier serviced apartments, the Austin Suites@Austin Perdana, features 460 units of 1, 2 and 3 bedrooms, with built-ups ranging from 658 sq ft to 1,390 sq ft. It is strategically located at Mount Austin, Quality, the Hallmark of Excellence Tebrau, just 14km from Johor Bahru city and the CIQ checkpoint, and easily accessible via the Pasir Gudang Highway, Johor Bahru – Kota Tinggi Highway and the North South Highway. 2014 saw the rapid construction of Austin Suites, and is anticipated for handover in Q2, 2015, with 90% of its units sold to-date. Mah Sing iParc, Iskandar Malaysia Positioned strategically within Flagship C of Iskandar Malaysia, the 206-acre freehold Mah Sing i-Parc is the solution to the call for a premier lifestyle industrial product component. Mah Sing i-Parc’s coveted location has seen strong interest from entrepreneurs and investors in both Malaysia and Singapore who are looking for a strategic address to base their operations. Accessibility is assured through a network of major highways while the upcoming proposed High Speed Rail (HSR) will have an interchange in Nusajaya. It is also located just 1km from Port of Tanjung Pelepas. 053 Austin Suites@Austin Perdana, Johor Bahru is anticipated for handover in Q2, 2015 with 90% of its units sold to-date Mah Sing iParc’s Parcel FD1, FD2 and FD3 – totalling 83 Detached Factory C units are at 95%, 90% and 70% O RE FACTS completion respectively with ongoing works on building and local infrastructure. Meanwhile, its 180 units of Semi-Detached Factory are at 80% building completion with local infrastructure progress at 35%. Expected to complete by November MESSAGES 2015, Parcel C1, C2 and C2a of its Sutera Avenue, Kota Kinabalu 3-storey shop offices are at 86% Fronting the Coastal Highway and just completion. Parcel C3 follows closely at 4km from the Kota Kinabalu 75% completion of 23 out of 201 units International Airport, Sutera Avenue in of 3-storey shop offices. an integrated commercial centre with Lifestyle Retail Lots, Festive Street Retail and Shop Offices. The A C KOTA KINABALU, SABAH development also comprises of a TIVITIE Kota Kinabalu Convention City residential component of 3 towers, S (KKCC), Kota Kinabalu known as The Residences with built-ups ranging from 726 sq ft to On October 2014, KKCC opened its 1,220 sq ft. show gallery to the public and was officiated by the Mayor of Kota For the work progress ending 2014, GO Kinabalu. Apart from showcasing the the substructure works of Sutera VERNANCE commercial component of its retail Avenue had achieved 90% completion shop lots, the show gallery showcased with superstructure works commencing the main core developments of KKCC in August 2014 for the basement car components which are the 348 rooms park floor, shop offices tower block 3-star hotel, 330 room 4-star hotel and and retail/residences tower blocks. The 300 room 5-star hotel. For the 5-star overall work progress for year ending hotel, Mah Sing Group Berhad has FINAN 2014 is about 7.5% for the secured the international PULLMAN superstructure works which are under C brand hotel under Accor Hotel IAL the Main Builder Works package. management, which will certainly S attract many tourists to come visit The whole development of Sutera KKCC as a world class waterfront Avenue at this moment is to be ADDITI development. completed in a single phase with a targeted Vacant Possession (VP) on O KKCC will be developed in two phases, NAL INF October 2016. As the adjacent which are Phase 1A and 1B. For phase neighbourhood is very close to the O 1A, the construction works for the RMATI new developments of Riverson and KK piling package is anticipated to times Square, there will be a proposal commence in Q2, 2015. It is estimated ON to link the Sutera Avenue development that the entire development for phase to Riverson via an overhead pedestrian 1A will be completed within 48 months link bridge. by Q4, 2018. NO TICES