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Wednesday, December 29, 2010

Tambun Indah to acquire land in Penang

Tambun Indah Land Bhd, a leading property developer in Penang, is planning to acquire 3.2 hectares of land next year.

Managing Director Ir Teh Kiak Seng said the group had identified 1.6 hectares on the mainland and another 1.6 hectares on Penang island with a gross development value (GDV) of approximately RM36 million and RM170 million, respectively.

According to an independent market researcher, the residential property market in Penang was valued at RM3.7 billion last year, and the mainland accounted for approximately 30 per cent of Penang's residential property market.

"Mainland Penang (Seberang Perai) is one of the fastest growing district in Penang due largely to a growing working class population as a result of rapid industrialisation," he said during the launch of the group's initial public offering (IPO) here today.

Tambun Indah is scheduled for a main-market listing on January 18.

"We are still eyeing for landbank in the Klang Valley like in Shah Alam and Kajang but are cautious about the cost, therefore, we have not finalised anything yet.

"As we all know, Klang Valley is a good market to do housing, but we want to build our name by building quality homes at an affordable price.

"We, however have no plans to expand overseas at the moment," Teh added.

Last year, the group garnered a 10 per cent share of the Seberang Perai residential property market.

"We expect after the IPO, our market share will increase above 10 per cent," he added.

To date, Tambun Indah has sold more than 2,800 residential units mostly in mainland Penang with a GDV of more than RM800 million.
Teh said the group achieved commendable financial performance over the years and had maintained a low-borrowing financial model so as not to burden the balance sheet.

As at December 31, 2009, the group was in net cash position.
"Tambun Indah has adopted a progressive dividend policy of paying between 40 and 60 per cent of group net profits to shareholders.

"At an IPO price of 70 sen per share, the annualised net dividend yield is estimated to be approximately seven per cent in financial year 2010.

"We believe this policy will go a long way in not only attracting investors but also ensuring value-creation for the long-term," he added.

Tambun Indah's IPO consist of a public issue of 32 million new ordinary shares and an offer-for-sale of 22.1 million vendor shares at an IPO price of 70 sen per share.

Of the 32 million new ordinary shares under the public issue, 11.05 million shares will be allocated for the Malaysian public.
Meanwhile, it has also allocated 9.9 million shares for private placement and 11.05 million shares for eligible directors, employees and business associates of the group.

The 22.1 million offer-for-sale shares will be allocated for placement to identified investors.

Additionally, the group's IPO will raise RM22.4 million in proceeds for the group.

Of this, RM12.70 million will be allocated for working capital, RM7.10 million for repayment of borrowings and the remaining RM2.60 million to defray listing expenses.

MIMB Investment Bank Bhd is the adviser, sponsor, underwriter and placement agent for the group's IPO exercise.

By Bernama

RM20m GDV for 'Garden Explore' project

Green Atmosphere Sdn Bhd (GA) has estimated a gross development value of RM20 million for its newly launched one-stop outdoor living mart project called "Garden Explore".

With its strategic location in Seri Kembangan, between Puchong and Putrajaya, the project would create opportunities for business owners in the industry with an expected high turnover of 750,000 visitors within a five km radius of the location, says GA's chief executive officer Nick Wong.

"The project will begin after the Chinese New Year and we hope to complete it by October next year," he told reporters after the project's launch today.

Wong, who is also the original concept creator of the project, added that Garden Explore has been strategically located to provide a better option for the public to meet their needs for outdoor accessories.

GA has signed the lease agreement with the land owner, Tempo Properties Sdn Bhd (TP), for a period of 10 years and had also obtained the development order from the local authority to construct the project in August.

TP's chief executive officer Khoo Boo Hian said the project would complement its adjacent development called The Atmosphere, which was a signature shop offices type commercial development between Tempo Properties and Eksons Corporation Bhd.

"With the co-existence of Garden Explore and The Atmosphere, this part of Seri Kembangan will soon transform into a vibrant commercial hub," he said.

He also said the project will be Malaysia's first outdoor living mart that would group all the resources and outlets within the green and landscape industry.

The project will cover a total 14.5 acres of land consisting of seven major zones of outdoor retailing lots, a plaza and amphitheatre (entertainment hall), 30 contractors and designer or consultant offices, two cafes and restaurant.

With a whole year round of events to be organised, the Garden Explore project is expected to offer various attractions to the public as well as business entities.

By Bernama

Ibraco to sell land in Kuching

Ibraco Bhd plans to dispose of 6.48 hectares of mixed zone land in Kuching, Sarawak to Wansa Realty Sdn Bhd for RM14.18 million cash.

In a filing to Bursa Malaysia today, Ibraco said the demand for office and exhibition buildings was expected to be limited.

"The disposal will avoid potential holding cost. In addition, the sale consideration is approximate 2.7 per cent above the market value of the land," it said.

Ibraco said the disposal was expected to derive a gross profit of RM10.64 million for the year ending Dec 31, 2010.

"It is expected to be completed within five years and the sale proceeds will be used for working capital," it said.

By Bernama

Asian Pac’s Safe Valley signs deal to sell land

ASIAN Pac Holdings Bhd’s unit, Safe Valley Sdn Bhd has signed a deal to sell 3.5ha of land in Setapak, Kuala Lumpur, to Axis Milestone Sdn Bhd for RM49.1 million.

Proceeds will be used to reduce its borrowings and to fund other development projects.

It expects to complete the deal by March 31 next year.

By Business Times

Sunway City buys land in Johor

PETALING JAYA: Sunway City Bhd is acquiring 64.63 acres near Johor Baru from Bukit Lenang Development Sdn Bhd for RM134.52mil.

The company said in an announcement that a shareholders' agreement was also signed for a proposed joint venture via Asli Budimas Sdn Bhd (a subsidiary of Sunway City), for the development of the land.

By The Star

GuocoLand says no plan to set up REIT

SINGAPORE: Singapore-listed developer GuocoLand, a firm linked to Malaysian billionaire Quek Leng Chan, said today it had no plans to set up a real estate investment trust (REIT), dismissing a report in the Business Times newspaper.

GuocoLand rose as much as 2.7 per cent today after paper said it may float two real estate investment trusts with assets of up to S$8 billion (US$6.2 billion) in the next 3-5 years.

“GuocoLand wishes to clarify that the group currently has no plans to establish a real estate investment trust,” it said in a filing to the Singapore Exchange.

“The group will review this as a possible strategy to extract value from its property portfolio, at the appropriate time,” it added.

By Reuters