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Friday, January 18, 2008

Malton eyes RM1 billion in sales for Year of the Rat

DEVELOPER Malton Bhd is confident in achieving some RM1 billion worth of property sales this year from its residential and commercial developments including Pearl Villas at Petaling Jaya’s Section 16, Amaya Saujana within Saujana Resort and V Square in Petaling Jaya’s City Centre.

An artist's impression of the Pearl Villas semidees

The RM110 million gated Pearl Villas features 42 units of 3-storey semidees with a land area of 42ft by 80ft and built-ups of 4,725 sq ft priced from RM2.6 million and two 3-storey bungalows with land areas of 6,700 and 8,400 sq ft and built-ups of 5,500 sq ft priced between RM3 million and RM4 million. They are built on a freehold 4.8- acre tract and according to the developer, all the units have been "pre-sold".

The RM250 million 6.02-acre freehold Amaya Saujana, features three blocks of residential suites comprising 128 units each. Priced between RM400 and RM500 psf, the developer held a sales preview last November and has recorded a take-up of 60% for the first block.

For the RM207 million V Square project on a 2.58-acre site along Jalan Utara, the developer is in discussions with several parties, both local and foreign, for enbloc sales of its corporate towers.

The project also comprises corporate business suites and a retail podium. Of the 87 business suites that were unveiled last December, prices are tagged between RM500 and RM600 psf and the units have built-ups of between 900 and over 1,000 sq ft. With sales of over 30%, the developer also plans to retain the retail podium for rental income.

With its core businesses in property development, and construction and project management, Malton’s chief operating officer Yeoh Teng Tatt (pix) expressed his confidence that the former will contribute strongly to its 2008 financial year, which ends on June 30.

The developer is targeting a robust year having lined up more than 10 projects for launch with a total gross development value of about RM2.1 billion, which will keep it busy over the next two to three years.

At a media briefing yesterday, Yeoh said it will also be expanding its landbank and is eyeing well-located areas in Selangor, Johor and Penang.

“We have an existing landbank of over 1,000 acres and most of these are located in Kuala Lumpur and Selangor. Due to the scarcity of land in choice locations like Petaling Jaya, we are also open to jointventure projects,” he added.

While admitting that it is also currently in negotiations with several landowners in Johor, Yeoh said it is too soon to reveal more details.

He added that the developer is also exploring opportunities in regional markets including China, Vietnam and Thailand.

"We may develop projects on our own or work with local partners. At the moment, we are in a lot of discussions with landowners in Vietnam but it will be a while before anything concrete can be announced yet.”

On its new projects, which are said to be in final-approval stages, the developer is planning the RM410 million high-end, gated and eco-friendly Ukay Spring bungalows and semidees in Ampang’s Ukay Perdana, the RM195 million Taman Maluri mixed development in Cheras and the RM95 million gated, high-end and strata-titled Taman Sea project featuring bungalows, zero-lot bungalows and semidees. It plans to have sales previews for these projects by April.

It is also the project manager of The Pearl condominiums located along Jalan Stonor within Kuala Lumpur’s city centre.

The RM650 million project features 177 units within a 41-storey tower and prices of the units are expected to be above RM2 million.

With average built-ups of 3,400 sq ft, the units are priced about RM1,200 psf and previews are by invitation only. It has since started the earthworks and foundation stages and is said to have attracted a lot of registrants, most of whom are locals.

By theSun (by Loo Pik Kwan)

Malton sees robust growth

RM2.1b projects will boost property division's earnings

PETALING JAYA: Malton Bhd expects robust growth for its property development division with the launch of upcoming projects worth a total gross development value (GDV) of RM2.1bil over three years.

Sales and marketing director Tracey Lai sees major earnings contribution from new projects such as V Square at PJ City Centre, Pearl Villas at Section 16, Petaling Jaya and Amaya Saujana at Saujana Subang.

“These new launches would propel the company forward in the coming year,” she said after a briefing on the company's project line-up for 2008.

Tracey Lai

Lai said V Square, a commercial development project with a GDV of RM207mil, and the RM250mil Amaya Saujana, a 13-storey residential suite, would be officially launched by the first quarter this year while Pearl Villas, which comprised three-storey semi-detached houses with a GDV of RM110mil, had been sold out.

The integrated property developer’s upcoming project, the Ukay Spring project in Hulu Kelang, Ampang featuring exclusive high-end semi-detached units and bungalows with a GDV of RM410mil, will be launched this year.

“We are also spreading our wings away from the Klang Valley with a RM160mil mixed development in Seremban,” Lai added.

Another project in the pipeline is the RM47mil Cantonment Road development, Malton’s maiden project on Penang island, comprising a 36-storey duplex condominium.

Malton, which has a land bank of more than 1,000 acres, plans to acquire more land in areas such as Petaling Jaya, Penang and Johor.

Lai said Malton was also exploring regional markets such as China, Vietnam and Thailand.

By The Star

Malton plans RM2b property launches

MALTON Bhd plans to launch residential and commercial projects worth RM2.1 billion in gross development value (GDV) over the next three years.

The developer is also exploring the possibility of expanding abroad to China, Vietnam and Thailand.

"We are still looking at our options, whether we want to go in with partners, and we have not firmed up anything," Malton director for sales and marketing Tracey Lai said at a media briefing yesterday in Kuala Lumpur.

Chief operating officer Yeoh Teng Tatt, meanwhile, said Malton is discussing terms and conditions with landowners in Vietnam but declined to provide further details.

On the domestic front, Malton expects to come up with sales previews for residential and mixed-development projects in the Klang Valley by middle of this year.

Malton's Ukay Spring residential project, which has a GDV of RM410 million, is an eco-friendly residential development with 88 bungalows and 60 semi-detached homes.

"Situated at the edge of a jungle in Ampang, the houses will have solar heaters and use rainfall catchments to water plants," said Yeoh.

The bungalows are priced at RM3 million each while semi-detached unit costs RM1.5 million.

Yeoh said Malton's property development arm is expected to do better this year, driven by its new launches, namely Pearl Villas, Amaya Saujana and V Square in November 2007, all located in Selangor.

All 42 three-storey semi-detached houses and two bungalows under the Pearl Villas development were sold. Malton is currently discussing en bloc sales of two corporate tower blocks under the V Square development.

The Klang Valley-based developer also plans to its maiden project in Penang by early April.

Known as Cantonment Land project, the project involves building a 36-storey duplex condominium, worth with a GDV of RM47 million.

For the financial year ended June 30 2007, Malton's construction and project management division recorded sales of RM429.9 million, or some 77 per cent of the group revenue of RM555.5 million.

Lai said Malton is set to net sales of RM1 billion from the three launches.

By New Straits Times (by Jeeva Arulapalam)

SunCity to launch RM3.7bil REIT

It is yet to decide between Malaysia and Singapore

PETALING JAYA: Sunway City Bhd (SunCity) is on track to list the country’s first integrated resort real estate investment trust (REIT) this year but is still undecided between Malaysia and Singapore.

Property investment managing director Ngeow Voon Yean said the company had appointed RHB Investment Bank and Goldman Sachs global joint coordinators for the REIT’s initial public offering (IPO) exercise.

CIMB and UBS Investment Bank have also joined the panel of joint book runners for the IPO exercise.

Ngeow Voon Yean

“We are waiting for our consultants to compile all the necessary details on the IPO structure and the asset valuation before deciding on the venue for the listing,” Ngeow told StarBiz yesterday.

SunCity’s REIT, with assets valued at RM3.7bil, is touted to be the largest in the country and will see the group inject a host of its prime properties into the REIT.

Among the assets to be injected are the Sunway Pyramid Mall and its annexe – totalling 1.7 million sq ft of net lettable space; the 4.8ha Monash University campus, Sunway University College, Sunway Carnival Mall in Penang and Tambun Hypermarket in Ipoh.

Other investment-grade properties to be included are the Sunway Resort Hotel & Spa, Sunway Pyramid Hotel and Menara Sunway.

The investment bankers will kick off the structuring process of SunCity, studying the viability of injecting the company’s investment properties into a REIT and the plan to grow the REIT with the injection of other and future developments.

Ngeow said the floatation would streamline the group’s businesses, allowing the company to focus its attention on property development while divesting long-term yield properties to the REIT. The process is designed to also enhance SunCity’s earnings visibility.

“The outlook for the retail, hospitality and commercial segments is encouraging and SunCity’s assets, backed by its integrated resort development concept, will allow the REIT a diverse yet synergistic earnings base,” Ngeow said.

“By unlocking the value of our assets, SunCity will be in a stronger cash position to expand into the property development business, both locally and abroad. We will also look into developing properties for future injection into the REIT.”

He said SunCity’s track record in investment assets would contribute to the continued growth of the REIT.

The REIT offering is also part of the company’s strategy to maximise shareholders’ value through asset restructuring.

“Setting up the trust will create value for our shareholders through the realignment of assets within the tax efficient REIT structure.”

An analyst with a local brokerage said SunCity provided the best exposure to REIT play, given its reasonably heavy reliance on property investment income and undemanding valuation.

Presently, property investment contributes 40% of the company’s revenue with property development making up the balance.

In a recent research note, Aseambankers said the REIT’s listing would be timely, given the rising capital value of commercial properties in Malaysia.

Moreover, SunCity’s diversification into emerging countries like India, Cambodia and soon, Vietnam and China, will also help it broaden its earnings base and provide new avenues for growth.

SunCity can look forward to a bullish financial year ending June 30, 2008 (FY08), with encouraging sales from the conclusion of en bloc sales of RM171mil for Sunway South Quay condominiums and RM219mil from Sunway Palazzio.

Sales in the first-half of the financial year totalled RM924mil, achieving 68% of its FY08 sales target of RM1.35bil. It also has unbilled sales of RM1.2bil.

By The Star (by Angie Ng)

‘We will be biggest REIT in the country’

Sunway City Bhd yesterday took a step closer to listing its much-awaited real estate investment trust (REIT) by appointing investment bankers for the exercise. Here are excerpts of StarBiz’s interview with its property investment managing director Ngeow Voon Yean.

StarBiz: The idea of listing SunCity's REIT has been bandied around for nearly two years. Why did it take so long to materialise?

Ngeow: I can give you a major reason. That time we were in the midst of expanding Sunway Pyramid, which is one of our biggest assets. We had planned for the shopping mall to undergo expansion more than two years ago.

So, if technically, if we had done the exercise then, we would also in a limbo there. One part is completed, but the second part is actually under development. Basically that's the only reason. And also some of the existing shopping mall space has been reconfigured and renovation work is still on.

Q: Do you have the list of all the properties that will be injected into the REIT?

Ngeow: We can only indicate that there will be at least five or six assets that we will inject into the REIT. We have hotels, shopping malls and commercial (properties). Although I can't disclose the figure, definitely we will be the biggest REIT in Malaysia.

Q: When exactly is the due date for listing?

Ngeow: We are looking at within this year. It can't be the first or second quarter because the submission and verification will take time. Likely (to be) in the second half this year.

Q: What are you going to do with the money (from the REIT)?

Ngeow: Continue with our development. Look at SunCity. Looking at our track record now, for investment properties, we have identified the development sites where we can build shopping malls and offices. With the available funds, if the right opportunity comes in, we will certainly continue with some of these investments. If we do that, later on (these investments) can be a pipeline for the REIT.

Q: Will new assets be from a third party or are you looking at your own steady stream of assets customised to be injected to the REIT?

Ngeow: That (the former) is also another option. If there is an opportunity and it is suitable, yes, we will work with a third party. But we will still be prudent. Basically, all this will depend on the suitable yield, as we will be very conscious about that now.

Q: Which area will be your focus in REIT?

Ngeow: The portfolio that we have encompasses three segments: retail, hotel and commercial. Commercial means offices and any other building that we have for rental.

Q: Is the name Sunway REIT official?

Ngeow: We have not confirmed the name. It could be Sunway REIT, could be Sunway City REIT.

Q: What kind of benefits do you see in being the largest REIT?

Ngeow: Size matters in REITs because being big in asset size would attract foreign institutional interest.

Q: When you talk about assets, how many more are there for future development?

Ngeow: There are quite a few in the pipeline.

Q: Will you be going overseas to acquire other equities?

Ngeow: At the moment, we are just appointing the investment bankers. We cannot disclose details now but (going) overseas is under consideration.

Q: Will you list the REIT overseas or locally?

Ngeow: The decision has not been made yet. It all depends on the advice from the investment bankers that we appointed. There are two (favouring) foreign and two (for) local, we have not really decided.

Q: What are the benefits of being listed offshore?

Ngeow: Of course, it's the yield. The valuation of the assets is better if we list the REIT in Singapore.

Between Singapore and Malaysia, there is a 100 basis points difference in terms of the yield. . We will leave it to our investment bankers to advise on our options.

Sunway Pyramid Mall is one of the assets to be injected into SunCity's REIT

By The Star - Starbiz

A shot in the arm for REITs

Suncity set to propel properties under trusts into international arena

MALAYSIAN real estate investment trusts (REITs) will be getting a shot in the arm in terms of international attention when Sunway City Bhd (SunCity) injects its stable of properties worth a whopping RM3bil to RM4bil into a REIT before year-end.

This may also set a precedent in the valuation and pricing of local REITS making their listing debut on Bursa Malaysia, which could mean that their market capitalisation could start from several billion ringgit instead of around RM1bil currently.

The largest Malaysian REIT in asset size so far is Starhill REIT, whose market capitalisation broke the RM1bil mark at the time of listing in December 2005.

However, SunCity’s REIT, which is yet to be named, is highly likely to surpass Starhill REIT in asset size – if the REIT were to be listed on Bursa Malaysia.

An analyst with a local research house said if this happened, SunCity’s REIT would set a new record that would surely raise the profile of local properties (under trusts) in the eyes of investors, especially foreign institutional investors.

“Starhill REIT set a significant milestone for the local REITs industry by hitting RM1bil, but SunCity’s REIT would propel properties under trusts into the international arena and show foreign investors that Malaysian properties are ready for the big boys’ league,” he said.

SunCity property investment managing director Ngeow Voon Yean said while the group favoured Bursa Malaysia for the listing of its REIT, the company had sought the advice of its investment bankers on whether it was better to list the REIT on the Singapore stock exchange.

“We have not decided where to list the REIT. It will depend on the advice of our investment bankers,” he told StarBiz yesterday.

SunCity told Bursa yesterday it would appoint investment bankers to assist in the listing of its REIT.

Ngeow said SunCity would have between 30% and 40% equity in the REIT post-listing and management control.

“We want to make it clear to everyone that we are not just disposing of our properties. We have a long-term interest in the REIT and will appoint a REIT manager to manage and enhance the properties under the REIT,” he said.

Ngeow said the REIT would be an integrated trust with a variety of properties for various businesses.

“We will have properties ranging from retailing to education and even tourism,” he added.

He said the REIT would grow through property acquisitions channelled from a pipeline of properties under SunCity and third party transactions.

Ngeow said the trust would not discount the possibility of acquiring properties from neighbouring countries.

It would be fair to conclude that the Malaysian REITs industry has grown substantially in a relatively short time.

The first Malaysian REIT, Axis REIT, was listed on Aug 3, 2005 with four properties worth a total of RM296mil.

Today, Malaysian properties under trusts are worth billions of ringgit, irrespective of where they are listed.

A case in point is Starhill REIT. And the impending listing of SunCity’s REIT clearly shows how fast Malaysia’s REITs have progressed within a span of 2½ years.

By The Star -News Analysis (by Danny Yap)

SunCity hires advisers for REIT

SUNWAY City Bhd (SunCity) has hired four investment banks, including RHB Investment Bank Bhd, to help the company set up and list a property trust that has been touted to be the country's biggest.

It also appointed CIMB Investment Bank Bhd, US bank Goldman Sachs and Swiss lender UBS, SunCity said in a statement yesterday.

They will also help SunCity plan how to grow its property trust.

Ngeow Voon Yean, managing director of SunCity's property investment division, said last month that the real estate investment trust (REIT), with some 10 properties, would be valued at RM4 billion.

"The listing will unlock the value of SunCity's portfolio of investment properties, and this will provide further resources necessary for the company to realise its full potential," he said in the statement released yesterday in Kuala Lumpur.

The company has yet to decide where to list the REIT. Ngeow had said that it could be in Malaysia or Singapore.

"The proposed REIT exercise will also streamline the group's businesses. The group will then focus on property development, while properties held for long-term yield will be disposed off to the proposed REIT," SunCity said in a separate statement to Bursa Malaysia.

The company will only decide and announce details of the REIT later.

By New Straits Times

Dijaya aims to raise up to RM171m from rights issue

DIJAYA Corp Bhd, as part of its capital management plan, aims to raise between RM100 million and RM171.3 million from a proposed rights issue with warrants to be used mainly as working capital for the group and its subsidiary.

CORPORATE OFFICE: The Dijaya group is involved in a spectrum of businesses that include resort and property development, manufacturing, investment holding and management services. - Website picture

The proposed rights issue of up to 214.12 million rights shares, together with up to 142.7 million free warrants, is to be implemented on a renounceable basis of four for three rights shares with two free warrants at an issue price of RM1 each.

The company expects to fully utilise the proceeds within two years after the completion of the proposed exercise.

In conjunction with the proposed cash-raising initiative, the group also proposed to double its present authorised share capital to RM1 billion comprising one billion shares by creating an additional 500 million new shares.

It also proposed to seek an exemption from the Securities Commission (SC) from having to make a mandatory offer, as provided for under Practice Note 2.9.1 of the Code, as well as amend to its Memorandum and Articles of Association in order to facilitate the proposed increase in authorised share capital.

The proposed rights issue with warrants is expected to contribute positively to the earnings of the Dijaya group for the financial year ending December 31 2008 and in the future, the company said in a statement.

Dijaya was listed on the main board of Bursa Malaysia since 1992 and is involved in a spectrum of businesses that include resort and property development, manufacturing, investment holding and management services. One of its well-known projects is Tropicana Golf & Country Resort.

By New Straits Times

Mutiara owns Jurus Positif in RM28million deal

PROPERTY developer Mutiara Goodyear Development Bhd will fully own Jurus Positif Sdn Bhd under a RM27.6 million deal as it seeks to boost profits.

Yesterday, it signed an agreement with Meganzi Sdn Bhd to buy the remaining 50 per cent of Jurus Positif.

Mutiara Goodyear chief executive officer Kee Cheng Teik said the purchase was a natural progression by the company to consolidate its shareholding in Jurus Positif and reap the maximum benefits from its current and future projects.

KEE: We expect the acquisition to contribute positively to future earnings

"We deem this acquisition as a strategic investment and expect this acquisition to contribute positively to the group's future earnings," he said in a statement yesterday.

One of Jurus Positif's notable property development projects is Taman Mutiara Gombak, Selangor, which comprises 321 double-storey terrace and semi-detached houses under Phase 1.

With a gross development value of RM160 million, Taman Mutiara Gombak is almost fully sold. It is expected to be completed in the third quarter of this year.

This will be followed by the launch of Phase 2, which comprises terrace shop-offices.

Apart from Taman Mutiara Gombak, Jurus Positif is developing a shopping podium and two prime office towers on 1.88ha in Bandar Sunway, Petaling Jaya.

It is also in active discussions to buy strategic land in Penang, which is in line with Mutiara Goodyear's expansion strategy.

"We (Mutiara Goodyear) are planning to launch a few projects this year which target the high-end market," he said.

By New Straits Times

Upgraded DRB-HICOM resort eyes more guests

KUALA LUMPUR: HICOM Properties Sdn Bhd, a wholly-owned subsidiary of DRB-HICOM Bhd, has re-launched the Lake Kenyir Resort and Spa in Terengganu, after spending RM10mil to upgrade and refurbish the resort, previously known as Kenyir Lake View Resort.

Chief executive officer Amir Salleh said the company expected 12% and 15% increase in foreign visitors to the resort by year-end.

“Although Malaysians dominate the overall market, there has been strong interest from the European and Singaporean markets,'' he said at the resort's re-launch yesterday.

Datuk Seri Tengku Adnan Tengku Mansor (left) congratulates Datuk Mohd Khamil Jamil after the re-launch of the resort.

Currently, its sales teams were stepping up tourism promotion efforts overseas to take advantage of the strong euro, as well as in the regional and domestic markets, he added.

“We expect the average room rate to rise from the current RM170 to RM200 following the re-branding exercise,” said Amir, who is also DRB-HICOM group director.

The resort, owned by HICOM Properties, was re-launched by Tourism Minister Datuk Seri Tengku Adnan Tengku Mansor. Also present was DRB-HICOM group managing director Datuk Mohd Khamil Jamil.

The upgrading and refurbishment exercise was carried out in phases from December 2006 and was completed early this year.

The refurbishment involved 135 chalets, the Main Lobby, Tembat Restaurant, Jenagor Bar & Lounge, Ulik Mayang Spa, Conference Facilities and staff hostel.

“We have taken steps to improve our services by focusing on training and development of manpower to complement our improved product facilities.

“We have also upgraded the hotel's operating system with the goal of creating better experience for our customers,” Amir said.

He said the company planned to position the resort as the only international class resort in Lake Kenyir, the country’s largest lake spanning 260,000 hectares.

The resort also serves as an alternative gateway to Taman Negara that straddles Pahang, Terengganu and Kelantan.

With the inclusion of Ulik Mayang Spa, the resort now has a new outlet offering its guests a variety of traditional spa treatments and massages.

By The Star