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Thursday, December 23, 2010

CapitaMalls buys Queensbay Mall

CapitaMalls Asia Ltd is buying Queensbay Mall in Penang for about RM658 million.

The acquisition will be made through CapitaMalls Asia's subsidiaries and an asset-backed securitisation structure.

CapitaMalls Asia will buy about 90.7 per cent of the mall's retail strata area and all its car park spaces, the company said in a statement yesterday.

Queensbay Mall is Penang's largest mall located at Bayan Lepas along the southeastern shorefront of Penang island and about 20 minutes' drive from Penang International Airport.

It is a family-lifestyle mall located at the heart of a 29.57ha prime waterfront integrated development which comprises a hotel, a wide range of residential homes and planned office towers.

It is easily accessible from the north of the island via the Jelutong Expressway and from the south via the Bayan Lepas Expressway.

This will be CapitaMalls Asia's second mall in Penang and fourth in Malaysia.

The other three malls - Gurney Plaza in Penang, an interest in Sungei Wang Plaza in Kuala Lumpur and The Mines in Selangor - are owned through CapitaMalls Asia's stake in CapitaMalls Malaysia Trust.

"Gurney Plaza, which we already own through CapitaMalls Malaysia Trust, and Queensbay Mall are the two best malls in Penang.

"The acquisition of Queensbay Mall, the largest shopping mall in Penang, will substantially strengthen CapitaMalls Asia's market leadership in the state.

"This acquisition signals our ongoing commitment to invest in Malaysia's retail sector for the long-term, following our listing of CapitaMalls Malaysia Trust in July this year," CapitaMalls Asia chief executive officer Lim Beng Chee said in the statement.

By Business Times

UEM Land in RM50m pact with Nusajaya

Nusajaya master developer UEM Land Bhd has signed a sale and purchase (S&P) agreement valued at RM49.6 million with Nusajaya Consolidated Sdn Bhd (NCSB).

NCSB is a 50:50 joint venture company of UEM Land and United Malayan Land (UM Land).

"Following the purchase of 2.204 acres in November 2009, NCSB has now exercised its option to purchase a second parcel, measuring 6.698 acres in Puteri Harbour.

"The acquisition was pursuant to the exercise of the option given to NCSB to purchase Parcel Commercial South 3 (Parcel CS3) at Puteri Harbour," UEM Land said in a statement today.

Parcel CS3 is located within the Commercial South development of Puteri Harbour.

UEM Land managing director and chief executive officer Datuk Wan Abdullah Wan Ibrahim said the exercise of the option and the S&P agreement reaffirmed UM Land's commitment and belief towards the overall development potential of Puteri Harbour.

"With UM Land's involvement in the development, it will contribute to realising our vision to develop Puteri Harbour as a premier waterfront destination for the region," he said.

By Bernama

UEM Land, UMLand to jointly develop RM670m project in Puteri Harbour

KUALA LUMPUR: UEM Land Bhd and UNITED MALAYAN LAND BHD (UMLand) are teaming up to develop the second mixed development project in Puteri Harbour with an estimated gross development value of RM670 million while gross development profit is estimated at RM160 million.

UEM Land, the master developer of Nusajaya, had on Thursday, Dec 23 signed a sale and purchase agreement valued at RM49.6 million with Nusajaya Consolidated Sdn Bhd (NCSB), a 50:50 JV of UEM Land and UMLand to acquire the parcel of land -- Parcel Commercial South 3 (Parcel CS3) -- in Puteri Harbour.

The Parcel CS3 is within the Commercial South development of Puteri Harbour. Commercial South is envisioned to be a business and residential hub with high towers overlooking the marinas of Puteri Harbour.

UEM Land and UMLand said their strategy was to target regional companies to locate their offices there while for the condominiums, their plan was to attract international investors to be the main buyers for the units.

UEM Land managing director Datuk Wan Abdullah Wan Ibrahim said the company was excited with the exercise of the option and the SPA as it reaffirmed UMLand’s commitment in the overall development potential of Puteri Harbour.

“We have enjoyed a strong working relationship with UMLand in the development of Parcel A3 and are pleased with the progress achieved for Parcel A3, which we hope to introduce to the market in 2011.

“With UMLand’s involvement in the development, it will contribute to realising our vision to develop Puteri Harbour as a premier waterfront destination for the region,” Wan Abdullah said.

Presently, NCSB is developing boutique waterfront apartments scheduled to be launched in 2011.

UMLand group chief executive officer Pee Tong Lim said with development activities picking up in Nusajaya, the joint project was timely and augured well with UMLand’s business plans and strategies.

“This development is expected to contribute to UMLand’s group earnings from financial year 2012 onwards,” said Pee.

By The EDGE Malaysia

L&G to develop RM555mil upscale housing project in Seremban

PETALING JAYA: Land & General Bhd (L&G) plans to develop an upscale residential development with estimated gross development value of RM555mil in Seremban.

L&G told Bursa Malaysia that its wholly-owned subsidiary Bright Term Sdn Bhd had signed a conditional agreement to acquire 10 parcels of land in Seremban with a 27-hole golf course for RM25mil.

The properties, located in the Tuanku Jaafar Golf & Country Resort, would be developed to include bungalow lots, double-storey cluster semi-detached houses, link cluster houses and apartments, L&G said.

It expects gross development profit of RM135.52mil, excluding land cost.

The proposed development, to be completed in 2018, will be financed through internally generated funds and borrowings.

By The Star

Malaysia REIT yields expected to fall

The yields of Malaysian Real Estate Investment Trusts (REITS) are expected to come down next year in view of the surplus in office buildings with the completion of new projects.

The yield, which is also known as return on investment in properties, is derived by dividing rental with property value.

President of the Association of Valuers, Property Managers, Estate Agents and Property Consultants in the Private Sector, Malaysia, Choy Yue Kwong, said while the surplus in office buildings is expected if more developers receive the nod to build, there are very few premium-grade 'A' buildings.

"Investment-grade buildings with premium values are the ones foreigners are looking for," Choy said in an interview.

Choy said while there are enough of good properties in Kuala Lumpur, not many of them are for sale.

"Some of them are owned by banks and most of them do not have the incentives to sell," he said.

He said the owners, some of them big corporates like Boustead Holdings Bhd and its major shareholder, Armed Forces Fund Board, own a lot of properties but may not be motivated to sell them as they are in the business of investing in properties and collecting rentals to pay dividend to members.

However, Choy said, there are rare instances when corporates or REITs will sell.

In March this year, Pelaburan Hartanah Nasional Bhd, manager of Amanah Harta Tanah PNB (AHP) sold three parcels of land in Pahang, Perlis and Kedah, together with shopoffice units erected on the parcels, to Permodalan Nasional Bhd for RM2.01 million.

The proceeds from the disposal were used to part-finance the cost of upgrading and refurbishment of Plaza VADS in Taman Tun Dr Ismail, Kuala Lumpur, another property owned by AHP, a REIT.

Choy said that while investment-grade properties are most sought-after, there is no need to buy expensive properties, or Grade A buildings, to get a reasonable yield of seven per cent.

"For instance, you can buy a property in Cyberjaya and still get a reasonable yield.

"It is also important that buildings are rebranded to upmarket category," he said.

He said one of the well-known office and commercial buildings in KL which has been extensively re-branded to upmarket brand is the Intermark, which is located at the junction of Jalan Tun Razak and Jalan Ampang.

It sets new standards in design and quality by integrating green technology and a lifestyle environment for work and leisure.

The project, which consists of Grade A office towers, an international hotel and retail podium, was a refurbishment of several buildings -- City Square, Empire Tower, Plaza Ampang and Crown Princess Hotel.

Choy said market rate of office space for premium Grade A office buildings in Kuala Lumpur is expected to be stable next year with market rate of between RM5 and RM7 per sq ft.

By Bernama

Selangor Prop Q4 profit grows to RM60m

Selangor Properties Bhd's pre-tax profit for the fourth quarter ended Oct 31, 2010 rose to RM59.843 million from RM45.017 million in the same quarter of 2009.

Revenue, however, fell to RM52.251 million from RM155.119 million previously.

For its fiscal year ended Oct 31, 2010, it recorded a higher pre-tax profit of RM71.787 million compared to RM61.558 million in 2009. Revenue fell to RM203.044 million from RM321.702 million previously.

In a filing to Bursa Malaysia today, the company said the increase in pre-tax profit was mainly due to contributions from property development, investment properties and education.

The group said prospect for the next financial year remained positive.

By Bernama