Malaysia Property News is a free resource website sharing Daily Property News & information about Property in Malaysia, which related to, Property Market, Property Investment, Commercial Property , Hot Properties Malaysia, Real Estate, Retail Shop, Business Park, Condominium Malaysia, Terraces & Apartment Malaysia, Houses, Residence, Resort and many more.

Tuesday, February 15, 2011

IGB to sell The Gardens Mall to subsidiary

IGB Corp Bhd plans to sell The Gardens Mall, which has an indicative value of RM820 million, to its subsidiary KrisAssets Holdings Bhd, for cash as part of its ongoing streamlining scheme.

KrisAssets, its 75 per cent unit, essentially operates like a real estate investment trust, and the purchase will give it a new source of recurring income.

IGB entered into an agreement yesterday for KrisAssets to buy all of the shares in Mid Valley City Gardens Sdn Bhd (MVCG).

The purchase price will depend on the net tangible asset of MVCG for the fiscal year ended December 31 2010. The four-year-old The Gardens Mall has an indicative value of RM820 million.
KrisAssets now has two subsidiaries - Mid Valley City Sdn Bhd, which owns and operates the Mid Valley Megamall and Mid Valley Capital Sdn Bhd (MV Capital), which is the funding vehicle for the issuance of the RM400 million redeemable secured serial bonds in September 2004.

IGB said the proposed sale will enable the group to streamline its property holdings whereby its retail properties will be consolidated and held under KrisAssets. It would also allow the group to achieve greater operational efficiency and synergistic benefits.

IGB will use the sale proceeds for new investment opportunities.

"IGB will continue to derive benefits from the future growth of The Gardens Mall via KrisAssets," it said.

KrisAssets said the deal would enable it to achieve the required scale to enhance its competitiveness in the retail sector.

"There would be potential synergistic benefits arising from the proposed acquisition, which include, amongst others, cost savings, operational streamlining and collaborative marketing strategies in the Mid Valley City as a whole," KrisAssets said.

Trading in shares of both IGB and KrisAssets have been suspended since February 11 pending the announcement.

By Business Times

IGB, unit ink deal to streamline retail ops

KUALA LUMPUR: IGB Corp Bhd has entered into a heads of agreement (HOA) with its 75%-owned KrisAssets Holdings Bhd to divest Mid Valley City Gardens Sdn Bhd (MVCG) to the latter to rationalise and streamline its retail operations.

In a filing with Bursa Malaysia yesterday, IGB said it entered into an HOA with KrisAssets for the proposed disposal of 100,000 ordinary shares of RM1, representing the entire issued and paid-up capital in MVCG, for a cash consideration.

MVCG is the owner and operator of The Gardens Mall, a retail property in Mid Valley City. The Gardens Mall, located adjacent to Mid Valley Megamall, has a strong tenant mix comprising about 200 stores.

“The proposed disposal will also enable the IGB group to streamline its property holdings whereby its retail properties will be consolidated and held under KrisAssets,” IGB said in the statement.

IGB said both parties had reached an understanding that the purchase consideration would be based on the net tangible assets of MVCG based on audited financial statements for the financial year ended December 31, 2010 (FY10) and the market value of The Gardens Mall and the land it sat on, with an indicative value of RM820mil.

“The proceeds from the proposed disposal will be utilised for new investment opportunities. IGB will continue to derive benefits from the future growth of The Gardens Mall via KrisAssets,” it said.

In a separate statement, KrisAssets said the proposed acquisition would substantially increase the net lettable area of its retail assets, noting that upon completion of the proposed acquisition, it would own two prime retail properties in Kuala Lumpur.

“The proposed acquisition is a key step to merge the property investment business in the retail segment of IGB and would enable KrisAssets and its subsidiaries to achieve the required scale to enhance its competitiveness in the retail sector,” KrisAssets said.

It added that there would be potential synergistic benefits arising from the proposed acquisition which include cost savings, operational streamlining and collaborative marketing strategies in Mid Valley City as a whole.

IGB's net profit jumped 70.5% to RM53.1mil for the fourth quarter ended Dec 31, 2010 (FY10) from RM31.1mil previously. Revenue for the period rose 29% to RM214.9mil against RM166.3mil a year ago due to higher contributions from all operating divisions.

For the full year, IGB's net profit rose to RM174.3mil from RM158.9mil on a 11.9% rise in turnover to RM719.4mil. It has declared an interim dividend of 5% less tax for FY10.

In addition, a share dividend was also declared for FY10 by way of distribution of a tax-exempt share dividend on the basis of one IGB treasury share for every 100 existing IGB ordinary share of 50 sen each.

By The Star

Malaysia ranks 'average' in Green City survey

SINGAPORE is Asia's greenest city, while Kuala Lumpur ranks average in a green city survey, together with the likes of Bangkok, Jakarta, Beijing, Shanghai and Delhi.

This was the finding of the Asian Green City Index survey carried out by the independent Economist Intelligence Unit.

The EIU examines the environmental performance of 22 major Asian cities in eight categories - energy and CO2 (carbon dioxide), land use and buildings, transport, waste, water, sanitation, air quality and environmental governance.

Singapore stands out in particular for its ambitious environmental targets and efficient approach towards achieving them.

"Overall, the index is a good reflection of where Kuala Lumpur stands in terms of its sustainability.

"Ranking average overall is a great start for Kuala Lumpur and this index is a stepping stone for us to move forward to improve our city's livability factor," Siemens Malaysia Sdn Bhd president and chief executive officer Prakash Chandran said in a statement.

Kuala Lumpur scores well for better-than-average levels of sulphur dioxide, nitrogen dioxide and suspended particulate matter. Average daily sulphur dioxide emissions are particularly low here at 6 micrograms per cubic metre.

Kuala Lumpur also ranks average in terms of environmental governance, land use and buildings. With 44 sq m of green space per person, the city is above the index average of 39 sq m.

According to the study, energy and CO2 are among the biggest challenges facing Kuala Lumpur's environmental condition.

"Automobiles have driven annual CO2 emissions per capita past the index average of 4.6 tonnes to an estimated 7.2 tonnes," according to the statement.

Sanitation is also another issue where only an estimated 70 per cent of the city's population has access to sanitation, while a significant number of households are still served by primary sewage treatment plants, such as septic tanks.

Meanwhile, the city centre's waste generation is 816 kg per capita per year, more than double the index average of 375 kg.

Rapid population growth and relatively poor waste collection and disposal played a major factor in determining the scores for the city in this category.

The study also found that Kuala Lumpur was well below average in the water category, due to a combination of relatively high water consumption and one of the highest leakage rates in index, with water leakages running at an estimated 37 per cent, compared with the index average of 22 per cent.

By Business Times