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Friday, October 19, 2007

AP Land confident of sales for myHabitat’s Tower II

KUALA LUMPUR: Asia Pacific Land Bhd (AP Land) is confident all 215 units in Tower II of its myHabitat serviced residences development here will be taken up within a year of its launch by year-end.

Executive director Hoi Siew Choo said foreigners were expected to comprise at least 50% of the buyers for the 38-storey Tower II.

“The strategic location, better yield, tight security and the affordable pricing are the main factors that will attract investors and buyers,” she said at a media briefing yesterday.

Located at Jalan Aman next to Empire Tower, Crown Princes Hotel and City Square Centre, the 1.5-acre myHabitat development comprises two tower blocks and has a gross development value (GDV) of RM330mil.

AP Land launched Tower I in late 2004 and had to date sold 86% of the 168 units, Hoi said, adding that half of the buyers were foreigners, mainly from Singapore, South Korea and Hong Kong.

Tower II offered units ranging from 600 to 1,100 sq ft and were priced between RM1,000 and RM1,300 per sq ft, she added.

“We are targeting the corporate individual who wants to stay in the city, closer to the work place.”

She added that the bigger units like penthouses would attract the more discerning buyers.

Currently, development of myHabitat is 40% complete. The entire project will be finished by second half of 2009.

LBS Bina buys into mixed development project in Sepang


Property developer LBS Bina Group Bhd is acquiring a RM2 company, Misi Aktif Sdn Bhd, which is undertaking a mixed development project on a 21.72ha parcel of land in Sepang, from two individuals for RM7 million.

LBS Bina said yesterday the consideration would be settled via internal funds of RM3 million and the balance via the offset against properties to be determined and mutually agreed upon.

It said the acquisition would enable it to increase its landbank for development in the central region and to generate future revenue. LBS said the consideration took into consideration the discounted cash flow from the future potential earnings from the project.

Its subsidiary LBS Bina Holdings Sdn Bhd yesterday signed a sale of shares agreement with Tan Wei Eng and Tan Sock Chin to acquire the two ordinary shares in Misi Aktif.

Atrium REIT buys property

KUALA LUMPUR: Atrium Real Estate Investment Trust (REIT) has acquired an industrial building at Senai Industrial Park, Johor for RM12.5mil from Yong Jin Development Sdn Bhd.

In a filing with Bursa Malaysia, Atrium REIT said the property would be leased to Flextronics Technology (Malaysia) Sdn Bhd for five years. The tenancy which expires at the end of 2011 has the option for further five years. It said the rental income would provide Atrium REIT with an annual gross yield of about 9.6%.

The acquisition comprises 2.8 ha leasehold land expiring in 2054 and housing an electronic factory with a net lettable area of 125,173 sq ft.

Axis REIT purchase of building brings it closer to asset target

By The Star

Axis REIT Managers Bhd's proposed acquisition of a five-storey building for RM37mil will boost its asset size to RM618mil, bringing it closer to its target size of RM800mil by year's end, Aseambankers Malaysia Bhd said.

In an announcement on Friday, Axis REIT proposed the buy of its 16th property, an office and factory in Petaling Jaya, from Wah Seong Industrial Holdings Sdn Bhd.

“The acquisition price appears fair at RM353 per sq ft with rising capital values,” said Aseambankers analyst C.T. Ong in a report. “The price compares well with recent office property transactions in the vicinity, like Nestle House at RM375 per sq ft and Menara Merais at RM358 per sq ft.”

The acquisition was expected to record a net property income of about RM2.6mil a year, or a net property yield of about 7%, he said, noting that it would increase Axis REIT's net profit by 3.3% for the financial year ending Dec 31, 2008.

The acquisition, expected to be completed by February next year, was anticipated to generate income of some RM960,000 a year for the trust, Ong said.

In March, Kompakar CRC Sdn Bhd, which occupied the five-storey building for the past nine years, agreed to renew its tenancy agreement for three more years, beginning Nov 23, for a monthly rental of RM270,000 (at RM2.55 per sq ft). It also has an option to renew for a further three years at a compounded rate of 4.4% per annum, according to Aseambankers.

Axis REIT's gearing is likely to hit 40%-43% by year's end owing to the acquisition of the leasehold property, with an approximate lettable area of 104,903 sq ft and an estimate gross rental value of RM3.2mil a year.

Aseambankers has maintained a “buy” call on the counter as it is expected to strike a target price of RM2.40, based on a discounted cashflow analysis, up 51 sen from its current price of RM1.89.

Daiman lines up more launches in Kota Tinggi

By The Star

PETALING JAYA: Daiman Development Bhd plans to launch 60 more shophouses and 120 single-storey houses in Kota Tinggi by the financial year ending June 30, 2008 (FY08).

In an e-mail reply to StarBiz, the company said that 43 double-storey homes were launched in Kota Tinggi earlier this year.

The developer posted stronger results for its fourth quarter ended June 30 with net profit improving to RM29.8mil compared with a loss of RM2.2mil in the previous corresponding period. Sales in the fourth quarter rose to RM44.4mil from RM25.4mil previously.

The firm attributed the improvement to new property sales and clearance of existing completed units.

Daiman has some 35 years' experience in the property sector in Johor. It also had a strong balance sheet with net cash of some RM190mil at the end of FY07.

With its financial strength, it was seeking opportunities to enlarge its land-bank in Johor Bahru as well as venture into the Klang Valley, Daiman said, adding that it was also on the lookout for overseas investments.

Its two flagship projects, Taman Gaya and Taman Daiman Jaya, and its industrial park, Taman Perindustrian Murni Senai, were anticipated to benefit from the multiplier effect from the Iskandar Development Region and the development of Singapore's two integrated resorts, the company added.

SJ Securities in a CMDF report has an “overweight” call on the stock with a target price of RM2.26. It expects the Government's commitment to the development of south Johor to bode well for Daiman.