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Thursday, October 29, 2009

SP Setia sees higher sales from abroad

Tan Sri Liew Kee Sin (second from left) exchanging documents with Hangzhou Ju Shen Construction Engineering chairman Hu Bai Fu, witnessed by Datuk Seri Kong Cho Ha (centre). With them are Setia Land (China) Ltd chairman Datuk Beh Hang Kong (left) and Hangzhou Ju Shen business development advisor Xu Yong.

SHAH ALAM: SP Setia Bhd, which has secured its first property project in Hangzhou, China, with a gross development value (GDV) of RM2bil, aims to derive 30% of its revenue and net profit from overseas projects by 2014.

Currently, overseas projects contribute less than 5% to the company’s revenue.

President and chief executive officer Tan Sri Liew Kee Sin said the China project, which comprises residential and commercial buildings including a hotel, would be developed in four phases over five years.

“The first phase, with a GDV of RM500mil, will commence early next year and should take about 2½ years to complete,” he said yesterday.

Liew said this after a joint-venture contract signing ceremony between SP Setia and Hangzhou Ju Shen Construction Engineering Ltd, its local partner in China.

Under the contract, a joint-venture company – Setia Fusheng Property Development Co Ltd – would be formed to undertake the project on 24 acres, with SP Setia having a 55% stake.

Liew said the partnership was akin to a perfect marriage, as both companies shared the same aspirations and values in terms of property development.

“SP Setia will provide the expertise and funds, while our China partner will inject the land,” he said, adding that this could fast track SP Setia’s expansion into the republic.

Liew said SP Setia chose Hangzhou for its first flagship project because the place had many strong points, including a population of nine million, an international airport close by and was fast growing into a commercial hub.

“This is our second venture abroad after Vietnam and SP Setia expects property projects in China to contribute significantly to its bottomline in the future,” he said.

Housing and Local Government Minister Datuk Seri Kong Cho Ha, who witnessed the ceremony, said first-time home buyers (foreign or local) were exempted from tax on capital gain if their properties were proven to be their principal home of residence under the Income Tax Law.

By The Star

SP Setia to develop RM2b mixed project in China

SP SETIA Bhd, the country's biggest property developer, will develop a RM2 billion mixed development project in XiaoShan, Hangzhou City in China, scheduled to begin in the first quarter of 2010.

This will be SP Setia's maiden project in China, in a joint venture (JV) with Chinese landowner, Hangzhou Ju Shen Construction Engineering Ltd (HJSCEL).

SP Setia, through its subsidiary Setia (Hangzhou) Development Co Ltd, holds a 55 per cent stake in the JV, while HJSCEL has a 45 per cent stake.

Work on the 10ha project will be completed in four phases over five years.
It features 11 residential towers, five office blocks, serviced apartments, a four-star hotel, a 300,000 sq ft retail mall and signature shops, said SP Setia president and chief executive officer Tan Sri Liew Kee Sin.

"We are awaiting for approvals from the Chinese authorities. We hope to get them by early 2010 and start Phase 1 of the project immediately," he said after the signing of the JV agreement with HJSCEL in Shah Alam, Selangor, yesterday.

The event was witnessed by Housing and Local Government Minister Datuk Kong Cho Ha.

"Phase 1 includes commercial properties and service apartments worth RM500 million," Liew said.

"We are not looking at borrowings as it is a self-funded project. We are developing the properties on a sell-and-build concept," he added.

However, it will retain the mall to control its tenant mix.

The service apartments will be pegged at RM400-RM500 per sq ft, while the commercial properties will go for RM500 per sq ft onwards.

"Our first income from this project will come in two years. The project will contribute positively to the future earnings and cash flow of SP Setia. It will also tell the world that we are ready to be an international property player," Liew said.

Liew said SP Setia is in talks with other landowners in China to form JVs, with priority to develop in Hangzhou.

He added that the company has a five-year plan to get 30 per cent of its net profit and revenue from overseas projects by 2014, from 2-3 per cent currently.

"We will focus on Vietnam and China for the next few years."

By Business Times (by Sharen Kaur)

Mutiara Goodyear plans to launch RM1.5b properties

Mutiara Goodyear Development Bhd, a mid-sized property developer, plans to launch RM1.5 billion worth of residential and commercial properties in the Klang Valley and Penang over the next year.

The properties will be divided into seven launches, starting from next month until the end of 2010.

"We are ready to launch the properties, but as to when, we will have to assess the market," its executive chairman Hamidon Abdullah told reporters after the company's annual general meeting and extraordinary general meeting in Kuala Lumpur yesterday.

"The approval and finances are in place," Hamidon said.
"The launches will start from next month onwards and will keep us busy until the end of next year," he added.

Its chief executive officer Kee Cheng Teik said the projects are being spread out so that the company can manage them well.

"In fact, we were ready to be put up (the properties) in the market last year, but had to delay them (due to the economic slowdown)," he said.

In its annual report 2009, Mutiara Goodyear said it plans to build 142 units of high-end bungalows and 46 units of superlink homes in Taman Melawati, Ampang.

It is also developing Mutiara Kajang project in Kajang, Selangor that features 392 units of bungalows, link houses, superlink homes and semi-detached homes.

Additionally, Mutiara Goodyear has teamed up with Tambun Indah Sdn Bhd to embark on a 101.48ha residential development project in Seberang Prai, Penang.

Meanwhile, the company is looking to acquire more land to add to its existing 356ha of landbank in the Klang Valley and Penang.

For the financial year ended April 13 2009, Mutiara Goodyear posted a net profit of RM17.39 million on revenue of RM91.3 million.

By Business Times (by Kamarul Yunus)

Mutiara Goodyear lauds RPGT

KUALA LUMPUR: Mutiara Goodyear Development Bhd believes the Government’s proposal to reimpose the 5% real property gains tax (RPGT) from Jan 1 next year will give certainty and market clarity to the property industry.

Chief executive officer Kee Cheng Teik said these values were important especially for potential foreign investors.

“It (the RPGT) was temporary waived but is now going to be tabled and this will give a clear picture to potential investors. Plus, the 5% figure is not really big,” he told a press conference after the company AGM yesterday.

He also said the RPGT was not going to give much impact to the company as its buyers were mostly resident-owners rather than investors.

It was reported that under Budget 2010, the RPGT would be imposed on gains from the disposal of real property irrespective of the holding period and category of owner.

Prior to the exemption of the RPGT in April 2007, tax on gains from property sales was on a progressive basis from 0% to 30%, depending on the holding period of the property.

On the performance of the company, Kee said Mutiara would launch RM1.5bil worth of properties starting next month until the end of next year.

“The launches will be mixed developments that are mostly residential. Five projects will be in the Klang Valley and two in Penang.

However, the launching dates will depend on the timing factor and market conditions,” he said.

Kee said the company had an undeveloped land bank of about 890 acres with future gross development value of about RM4.2bil.

Executive chairman Hamidon Abdullah said it was important for the company to come up with products that really suited the demand and needs of buyers at this time of uncertainty.

The property market sentiment had started picking up again since June, he said, adding: “We hope this positive sign will continue and we at Mutiara will continue to come up with quality and affordable products that will give value for money to our buyers.”

By The Star

YTL to develop project in George Town heritage area

The heritage enclave of George Town in Penang may see a waterfront development soon.

It is learnt that YTL Corp Bhd will embark on a project, through joint-venture company PDC Heritage Hotel Sdn Bhd, to build luxurious condominiums and an eatery on a 1.4ha seafront site adjacent to the 124-year-old Eastern and Oriental (E&O) Hotel along Lebuh Farqhuar.

PDC Heritage was set up about a decade ago, with YTL Corp holding 51 per cent stake and Penang Development Corp (PDC) the remaining 49 per cent.

It is not known if PDC has since divested its interest in the joint-venture company.
According to sources, the project will feature six blocks of high-end condominiums.

A double-storey building housing food and beverage outlets will also be built on the site where two dilapidated heritage structures are currently standing.

However, the development value of the proposed project is not known.

Local authorities gave PDC Heritage approval in June this year to convert its prime seafront land from leasehold to freehold status.

The land, bordered by the E&O Hotel and St Xavier's Institution, was originally state-owned and had nine pre-war buildings.

In 1996, the land on which sat government staff quarters, the former Public Works Department district engineering office, watchman's quarters and a garage, was alienated to PDC.

In 1998, PDC came under fire from heritage activitists when it demolished the 80-year-old buildings without local council approval to make way for a five-star hotel, which was to be developed by PDC Heritage Hotel.

YTL Corp group managing director Tan Sri Francis Yeoh could not be reached for comment.

By Business Times (by Marina Emmanuel)

WCT to jointly develop 1Medini

PUTRAJAYA: WCT Bhd and Iskandar Investment Bhd (IIB) will jointly develop and own a residential project in Iskandar Malaysia, the 1Medini, with a gross development value of RM600mil.

1Medini comprises 1,332 condominiums and 68,800-sq-ft commercial space in the 2,300-acre Medini, a mixed urban development alongside Legoland Malaysia, Educity and the Iskandar financial district.

WCT chairman Datuk Capt Ahmad Sufian said a joint-venture company, One Medini Sdn Bhd, had been set up to undertake the development, which was 70% owned by WCT Land Sdn Bhd and 30% by Medini Land Sdn Bhd.

WCT Land and Medini Land are wholly-owned subsidiaries of WCT and IIB respectively.

“We were also awarded a RM766mil contract for infrastructure works for the whole of Medini in July,” he said after a strategic partnership signing ceremony between WCT Land and Medini Land for the 1Medini development.

The event was witnessed by Johor Mentri Besar Datuk Abdul Ghani Othman.

IIB chief executive Arlida Ariff said phase one of 1Medini was scheduled to be handed over to buyers in early 2011 and its full completion was expected in 2015.

She said that so far, the response had been quite good with interested buyers from the Middle East, Indonesia, Singapore as well as locally.

Ahmad Sufian said the Medini projects were expected to contribute positively to WCT’s earnings from the next financial year ending Dec 31, 2010 and should last for three to four years.

By The Star

Iskandar Investment, WCT in joint venture

WCT Bhd and Iskandar Investment Bhd will jointly develop and co-own the 4.4-hectare 1Medini residential project in Medini Iskandar, Johor with a gross development value (GDV) of RM600 million.

The project will be developed by One Medini Sdn Bhd, a 70:30 per cent joint venture between WCT’s subsidiary, WCT Land Sdn Bhd and Medini Land Sdn Bhd, a subsidiary of Iskandar Investment.

Scheduled to be fully completed by 2015, the 1,332 units of condominiums in 1Medini would include a 68,800 sq ft commercial area for local retail businesses.

Priced at RM350 per sq ft, the first phase of the condominium is expected to be launched in early 2012.

By Bernama

Mah Sing Q3 net profit up 42% on current projects

PETALING JAYA: Mah Sing Group Bhd posted a net profit of RM23.5mil in the third quarter ended Sept 30, a 42% improvement from the previous corresponding period.

The higher profit was contributed by its current residential and commercial projects.

However, its revenue for the quarter dropped 17.5% to RM135.14mil.

In a filing with Bursa Malaysia, Mah Sing said its plastics division also contributed to the earnings apart from property development, adding that the latter contributed more than 90% to its operating profit.

“The group’s quick turnaround business model has generated healthy profit and cashflow with about RM120.4mil cash as at Sept 30,” it said.

Mah Sing managing director-cum-group chief executive Tan Sri Leong Hoy Kum said: “We believe the property market is gaining momentum for a likely up-cycle in the second half of 2010, and have planned ahead to meet the coming demand with several land acquisitions.”

The company yesterday acquired two pieces of prime land in Selayang and Petaling Jaya that could yield an estimated total gross development value of RM1.05bil.

Its wholly-owned subsidiary, Nova Century Sdn Bhd, acquired about 26 acres of freehold development land in Selayang for RM41.65mil cash.

Meanwhile, its other wholly-owned unit, Sierra Peninsular Development Sdn Bhd, acquired about 19.6 acres in Petaling Jaya for RM89mil.

Mah Sing has also announced that it proposed to undertake a share private placement and bonus issue that could potentially raise gross proceeds of RM103mil.

The private placement involves 63 million new 50 sen shares, representing about 10% of its issued and paid-up capital.

The one-for-five proposed bonus issue involves up to 151,286,435 new shares.

The private placement and bonus issue are targeted for completion by year-end and the first quarter next year respectively.

By The Star

Mah Sing buys land worth RM927m

Refer Updated here: Mah Sing clarifies

Property developer Mah Sing Group Bhd is buying two plots of land worth a combined RM927 million in Selangor, it told Bursa Malaysia yesterday.

It plans to develop the two plots, a 10.53ha land in Selayang and a 7.938ha land in Petaling Jaya, for residential and commercial purposes respectively.

Mah Sing also proposed a private placement of up to 63 million new shares, about 10 per cent of its paid-up share capital.

The placement will be done in several tranches and the issue price will be at a discount of not more than 10 per cent based on the five-day weighted average market price of the share or the par value of 50 sen each share.

Proceeds will be used to strengthen its financial position and reduce borrowings.

The company also proposed a bonus issue of up to 151.3 million new shares on the basis of one bonus share for every five shares held.

By Business Times

Mah Sing stock jumps on profit gain

Mah Sing Group Bhd, Malaysia’s fifth-biggest property developer, rose the most in almost three months after the company said third-quarter profit jumped 42 per cent and it announced land acquisitions and a bonus issue.

The shares climbed 3.4 per cent to RM1.84 ringgit at 9:56 a.m. local time, headed for their steepest gain since Aug 6. The stock is set be the best performer on the FTSE Bursa Malaysia Top 100 Index, which fell 0.8 per cent.

Fourth-quarter earnings “should be stronger due to the recognition of robust sales,” Terence Wong, an analyst at CIMB Investment Bank Bhd., said in a report today. The bonus issue was “another piece of good news” that “could help improve liquidity of the stock.”

Mah Sing is benefiting from an economic recovery spurred by the government’s RM67 billion (US$19 billion) of stimulus initiatives.
The company yesterday acquired 46 acres of land with plans to develop RM1.05 billion of homes and offices.

Profit climbed to RM23.5 million in the third quarter from RM16.5 million a year earlier, boosted by higher sales, it said. Mah Sing said it plans a one-for-five bonus share issue.

The company also proposed a private placement to raise RM103 million for working capital, it said in a statement yesterday.

It’s “perfect timing to build its land bank and war chest,” Kenanga Investment Bank Bhd said in a report today. Kenanga raised its target price on Mah Sing to RM2.36 from RM2.33 and maintained its “buy” rating.

Mah Sing has been “on a roll” in terms of buying land this year, having spent RM289 million on 180 acres, CIMB’s Wong said. The land has a combined gross development value of RM1.9 billion, he said.

By Bloomberg

Mah Sing sees RM23.1m off-market trade

Mah Sing Group Bhd, Malaysia’s fifth-biggest property developer, had 12.5 million shares worth RM23.1 million changing hands in an off-market trade.

The shares traded off-market at RM1.85 each, according to stock exchange data.

By Bloomberg