Acquires Corus Hotel in KLCC for RM260mn

Mah Sing has announced its second land acquisition for the year with the proposed purchase of a 1.485-acre prime freehold parcel in Kuala Lumpur’s prestigious KLCC area for RM260mn (or RM4,019 psf) from the MUI Group. The site is currently occupied by the 13-storey Corus Hotel, a 4-star international hotel with basement carpark facilities. The deal will be funded through a combination of internally generated funds and bank borrowings, with completion targeted by first quarter of 2026, upon fulfilment of conditions precedent and handover.

Exceptional Location in the Heart of Kuala Lumpur

Strategically located along Jalan Ampang, the property enjoys prime frontage along a key arterial road in the heart of the capital city. It is situated just 500 metres from Suria KLCC and the Petronas Twin Towers, and offers seamless connectivity via major roads such as Jalan Tun Razak, Jalan Sultan Ismail, and Jalan Kuching, as well as expressways like the AKLEH and the Setiawangsa-Pantai Expressway (SPE).

Additionally, the site is well-served by a wide range of amenities within proximity. Shopping and dining options include Avenue K (200m), Suria KLCC (400m), KLCC Park (900m), The Linc KL (800m), Intermark Mall (1.4km), and Pavilion KL (3.2km). Key healthcare facilities nearby are Prince Court Medical Centre (2.4km) and Hospital Kuala Lumpur (3.3km). Educational institutions in the vicinity include Sayfol International School, UTM KL, SK Jalan Raja Muda, SMK Seri Ampang, and St John’s International School, all located within a 2km-4.5km radius.

Refer to Appendix I for the location map of the site.

Premium Serviced Apartments Development with a Potential GDV of RM1.28bn

Mah Sing plans to redevelop the site into a premium serviced apartment project with an estimated gross development value (GDV) of RM1.28bn, subject to regulatory approvals. Preliminary plans indicate starting prices from RM898,000 per unit, with an average selling price of approximately RM2,000 psf. The project is targeted for launch in IH2026, with completion expected over a four- to five-year period.

Reasonable Entry Price with Long-Term Value Potential

The land cost of RM260mn represents approximately 20.3% of the total GDV of RM1.28bn, broadly aligned with the typical 20% land-to-GDV benchmark. The price also reflects a 9.6% discount to the property’s audited net book value of RM287.69mn as at 30 June 2024. At RM4,019 psf, the acquisition price falls within the range of KLCC Golden Triangle land transactions over the past decade (2016-2025), which have generally ranged between RM1,700 and RM5,400 psf. That said, most deals were below RM4,000 psf, with only one transaction exceeding RM5,000 psf during this period. A notable RM7,200 psf deal in 2010 is often cited but falls outside the current market cycle.

The pricing is further supported by the site’s location within a designated Transit Planning Zone (TPZ) under the Kuala Lumpur Local Plan 2040 (KLLP 2040), making it eligible for a higher plot ratio. This expanded development potential enhances the land’s value proposition and project feasibility.

Benchmarking-wise, Mah Sing’s entry price also compares favourably to a smaller neighbouring parcel (0.356 acres) on Jalan Mayang, currently listed at ~RM4,500 psf on public property portals.

Branding and Buyer Appeal in Focus

From a pricing standpoint, we view the acquisition as fair and competitive, given the site’s prime location, higher plot ratio potential under KLLP 2040, and recent land benchmarks in KLCC Golden Triangle. The indicative ASP of ~RM2,000 psf is also attractively positioned compared to nearby luxury projects such as Pavilion Square (~RM2,200 psf), Armani Hallson (RM2,100-2,900 psf), Conlay Signature Suites (average RM2,300 psf), and CloutHaus Residences (average RM2,900 psf).

While the project holds long-term potential, we maintain a neutral stance at this stage, as the success of high-end developments often depends on factors beyond land cost and pricing, such as branding strength, product differentiation, and execution strategy.

In particular, brand association could play a meaningful role in attracting discerning buyers, especially foreign purchasers and high-net-worth individuals who tend to favour developments linked with well-known hotel or lifestyle brands. Mah Sing’s recent focus has been primarily on the mass-market segment, and re-establishing its presence in the luxury space may require targeted branding efforts and positioning. Sales momentum may also be more gradual during the development phase, as buyers in this segment typically prefer to assess completed products. Nevertheless, with thoughtful execution and a clear product vision, we believe the project could strengthen Mah Sing’s presence in the city’s premium residential market.

Impact

No change to our FY25-27 earnings forecasts for now, pending the completion of the acquisition.

Valuation

We maintain our Buy recommendation with an unchanged TP of RM1.72/share, based on CY26 P/Bk multiple of 1.0x and a 3% ESG premium.

Appendix 1: Location Map

Earnings Summary

^ Core Net Profit excludes fair value gains and distribution to perpetual sukuk and securities holders

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