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Friday, March 4, 2011

SP Setia may be eyeing more land

PETALING JAYA: Property developer SP Setia Bhd may buy more land following its latest acquisition of 268 acres in Cyberjaya, analysts said.

They believe that the recent share placement by SP Setia to its major shareholders might help boost the company's acquisition plan as the exercise was expected to raise some RM1bil to finance its existing and future projects.

HwangDBS Vickers Research, in its report yesterday, said that as SP Setia build up its war-chest with the upcoming RM1bil placement and record RM1.8bil unbilled sales, the company had a knack of winning lucrative land deals, and was planning for more high-density mixed development and townships in the Klang Valley.

Kenanga Research echoed the sentiment, saying that RM300mil to RM400mil of the potential RM1bil cash from the share placement might be used to buy land.

“Hence, there is still room for more sizeable land deal in the near future,” it said in a report yesterday.

It added that the company's net gearing was still at a comfortable level of 0.26 times while cash pile remained sizeable at RM1bil as at Oct 31, 2010.

SP Setia shareholders recently approved a proposal for the placement of up to 15% of the company's issued and paid-up capital that would involve the issuance of up to 152.52 million new shares.

The share placement will involve three major shareholders in SP Setia Skim Amanah Saham Bumiputera (ASB), under the banner of Permodalan Nasional Bhd; Employees Provident Fund (EPF); and SP Setia president and chief executive officer Tan Sri Liew Kee Sin.

ASB is the largest shareholder in SP Setia with 20.12% stake while EPF has 14.47% and Liew 11.96%.

On Wednesday, SP Setia said it had bought the freehold land in Cyberjaya's flagship zone from Setia Haruman Sdn Bhd for RM420.4mil.

The land will be developed as Setia Eco Glades project by Setia Eco Villa, a 70:30 joint-venture company between SP Setia and Setia Haruman.

Liew said the project would be a mixed residential and commercial development and was expected to have a gross development value of RM3bil.

The project, targeted at high-end customers in Cyberjaya, offered RM2mil for a semi-detached house and a minimum RM3mil for a bungalow. Construction is expected to commence in financial year 2012 and will span over six years.

HwangDBS said Cyberjaya had started to come on buyers' radar screen, given its improved connectivity (20 minutes from Kuala Lumpur via new highway), increased investment by multinational companies and availability of amenities.

“Mah Sing Group Bhd's Residence and UEM Land Bhd's Symphony Hills have recently seen strong take-up at new benchmark prices,” it said.

By The Star

Mutiara Goodyear launches lifestyle homes with GDV of RM40m

KUALA LUMPUR: MUTIARA GOODYEAR DEVELOPMENT Bhd has launched its new phase of its lifestyle homes in Nadayu 92, Kajang with a gross development value (GDV) of over RM40 million.

It said on Friday, March 4 the new phase included four bungalows priced from RM2.2 million and 24 semi-detached homes priced from RM1.3 million. The built-up of the bungalows and semi-detached homes are 6,142 sq ft and 4,579 sq ft respectively.

Its executive chairman Hamidon Abdullah said: “We are encouraged by the good take up rate for Phase 1 which was fully sold within a day during its launch early this year. Hence, we expect a good take up rate for the bungalows and semi-detached homes.”

Nadayu 92, Kajang is a gated and guarded community spread over 69 acres of freehold land with total GDV of RM350 million.

By The EDGE Malaysia

Prasarana to get part of RRIM land for development

PETALING JAYA: Syarikat Prasarana Negara Bhd will be allocated a parcel of land in the proposed Sungai Buloh Rubber Research Institute Malaysia (RRIM) development project for commercial development as part of the “rail plus property” model being used to offset the cost of building the mass rapid transit (MRT), sources said.

“Negotiations are ongoing between Prasarana and the Employees Provident Fund (EPF),” said one source.

“The parcel of land (to be allocated) will be used to build the MRT's main depot but it will also include commercial development above and possibly around the depot, in the form of retail and office space,” another source explained.

Prasarana has been appointed the MRT project and asset owner.

It has been reported that the Government will fund the MRT, possibly through the raising of bonds, and that Prasarana will adopt Hong Kong's “rail plus property” approach in its urban public transportation system, whereby parcels of land are developed to offset the cost of construction of public transport systems.

Prasarana will be given land to develop in joint ventures with developers and the proceeds from that will be repaid to the Government.

It has also been reported that Prasarana is finalising prospective land parcels that the company would develop.

Last March, the Government announced that EPF would form a joint venture to develop 3,000 acres of land in Sungai Buloh owned by RRIM into a new hub for the Klang Valley. The new hub in Sungai Buloh will lead to over RM5bil of new investments, it was then said.

The RRIM land is also among the sites identified for re-development under Budget 2010.

The location and size of RRIM's land near the fast developing Kota Damansara area holds significant attraction for developers and is expected to command a price premium, analysts have said.

The redevelopment of the RRIM land is also part of the Greater Kuala Lumpur Strategic Development Project initiative under the 10th Malaysia Plan.

In July last year, the EPF said it had engaged several consultants to advise on the development of the land.

Subsequently, Kwasa Land Sdn Bhd was set up by the Federal Government and will act as a development manager on behalf of the EPF and the Government. Kwasa Land will be involved in conducting open tenders or negotiations with developers relating to the land parcels in the RRIM development.

It is left to be seen if Prasarana would have to pay for the parcel of land in RRIM or whether it will be given to it free. “This is something being worked out now but it is important to note that Prasarana is wholly-owned by the Government and the MRT project is also Government led,” a source said.

By The Star