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Tuesday, April 12, 2011

Mah Sing plans industrial park in Johor, GDV RM610m

KUALA LUMPUR: MAH SING GROUP BHD is buying nine parcels of land in Tanjung Kupang, Johor Bahru measuring 205.72 acres for RM54.7 million for an industrial park.

It said on Tuesday, April 12 the land was acquired at about RM6.10 per sq ft and it plans to develop into an integrated industrial and business park named Mah Sing i-Parc.

“Based on preliminary plans, Mah Sing i-Parc will comprise semi-detached factories, detached factories and shop offices with an estimated gross development value of approximately RM610 million,” it said.

Mah Sing said there would also be some factory land of about 0.5 acre to one acre per lot for sale within the industrial park.

The park is one km from Port of Tanjung Pelepas (PTP) and 23 km to Jurong Industrial Estate in Singapore. Besides being only 8 km from the Second Link Bridge to Singapore.

“Such close proximity to PTP would attract businesses which support port and marine activities, such as those providing bunker facilities, ship repairs and cargo handling services.

“As PTP is a major transportation and transshipment hub, there is a large target market comprising import, export, trading, forwarding and warehousing services which may relocate to Mah Sing i-Parc,” it said.

By The EDGE Malaysia

Sagajuta to unveil RM2b projects

KLANG: Sagajuta (Sabah) Sdn Bhd, a pioneer developer in Sabah is launching four commercial projects worth almost RM2 billion this year, as demand for the properties increases, its chief said.

They include the abandoned commercial project in Selangor, called 1Gateway Klang, which its unit, Lagenda Erajuta Sdn Bhd, has taken over and is reviving this month.

The three new projects are located in Kota Kinabalu, Bukit Mertajam in Penang and Johor Baru, launching in phases from the end of this year.

The projects will comprise modern shoplots, office towers, street mall and leisure facilities.

Sagajuta managing director and executive chairman Datuk Raymond Chan Boon Siew said the projects will be carried out without bridging loans.

"We expect the projects to be self-funded and sustainable," Chan told Business Times recently.

Chan said he is bullish that the projects will be successful during the launches because of the concept.

He said the current trend shows that buyers and investors are looking for commercial properties with lifestyle and leisure facilities and a conducive work environment.

"While it takes a bit of work to plan the developments, we try to build iconic projects that change the landscape so it pays off well for us and the buyers," Chan said.

Sagajuta is known for its landmark project, the RM1.2 billion 1-Borneo mall, the largest in Sabah, which has four international and regional chain hotels, condominiums, lifestyle and leisure properties.

On 1Gateway (previously, Intania), Chan said he is confident that the project, which will be re-launched soon, will be sold within the next six to 12 months.

The revival plan includes injecting the 4-star Novotel hotel, a hypermarket, duplex shops, Soho and a food hub into the project to enhance its appeal. This is on top of the original plan to have a 31-storey office tower and shoplots.

Chan said he may plan to take over other abandoned buildings in the Klang Valley, if viable.

Intania, a joint venture between Port Klang Authority and Dermaga Suasa Sdn Bhd, controlled by Tan Sri Megat Najmuddin Megat Khas, stopped in 2006 following a dispute between both parties on privatisation matters.

Dubbed the white knight, Lagenda Erajuta took over the project from Dermaga. This is the first abandoned project taken over by Chan.

By Business Times

Bangi Heights ready to launch Legundi Residensi

KUALA LUMPUR: United Malayan Land Bhd's unit, Bangi Heights Sdn Bhd, will launch its latest project, the RM40 million Legundi Residensi (1) development this month.

Spread across 3.37ha, the exclusive Legundi Residensi (1) offers limited residential from the 52 double-storey cluster homes, the 12 double-storey semi-detached (semi-Ds) and one bangalow unit.

The cluster homes have built-ups of 2,156 sq ft and 2,405 sq ft, the semi-Ds are slightly larger with built-ups of 2,545 sq ft and 2,559 sq ft, while the bangalow is a larger 2,9818 sq ft unit.

Price for the cluster homes starts at RM543,000, the semi-Ds from RM687,000 and the bangalow at RM1.2 million.

Bangi Heights said the development would appeal to those with income above RM7,000 per month wanting to upgrade to bigger house or for investors looking for a second home.

Tucked within the Bandar Seri Putra in Bangi, the new project is expected to see positive upside based on earlier phases launched.

The developer noted that a semi-D lot in Phase 8(B) had appreciated by 19 per cent to RM815,000 from its original price of RM680,000.

It also said that demand for its products launched in 2010 was above average with take-up rate exceeding 85 per cent.

"With the continuation of cheap lending rate and relatively easy credit availability, we expect the residential property market to continue to perform well in 2011 in Bandar Seri Putra, particularly the residential property sector in general," it said.

With a total size size of 898 acres around, Bangi Heights has around 22 per cent of the total land yet to be developed.

The company aims to develop more commercial facilities in future, namely street mall retail outlets and another petrol station to serve the growing population.

By Business Times

Banks too strict,say Malay property developers

KUALA LUMPUR: The Malay Property Developer Association of Malaysia (PPHMM) is crying foul over strict and stringent measures imposed by banks in approving loans to its members who want to develop Malay reserve land, especially in Kuala Lumpur and Selangor.

Its president, Mohd Wari Mat Zaki, claimed that the banks were reluctant to approve loans to PPHMM members because of the strict conditions imposed when developing Malay reserve land.

"Banks would not like to give out loans as the land would not be a good collateral for them because it cannot be transferred to parties other than Malays.

"As such, the Malay developers face difficulty in securing loans from banks and would not be able to move ahead with their projects," he said at a briefing on issues faced by the Malays property developers here yesterday.

However, Mohd Wari and other committee members of PPHMM could not ascertain as to how many of its members were affected by such stringent bank policy on Malay reserve land, saying only that at least 50 out of about 100 members were operating their business in the Klang Valley, including Selangor.

"We could not provide the exact figure as today is our first meeting and we had just formed a committee to look into such grouses by our members," he said.

With about 100 companies registered under PPHMM, he said, the association members had a total gross development value of about RM5 billion nationwide, of which RM1 billion worth of projects alone were located in the Klang Valley.

He urged banks to provide easier access to funding for its members who wanted to develop Malay reserve land.

"We are not asking them (banks) to provide 100 per cent loan or impose certain ceiling for the funds. We would appreciate it if they (banks) can approve loans of up to 25 per cent of the total investment costs. This is to keep us going with our projects," he said.

At the same time, Mohd Wari called on the government to look into the problems faced by Malay property developers whom, he said, were not only trying to improve the living standards of the Malays but also contributing to the country's economy.

With this in mind, he said, the government should continue with its support to help Malay developers by setting up a special fund in the form of loans to assist them, such as providing term loans or bridging finance.

"We hope for continued support from the government to help Malay developers, by giving them opportunities and preference in developing the Malay reserve land, including developing housing schemes dedicated to Malays so that the reserve land would not fall to the hands of the others."

Mohd Wari said the association was drafting a working paper on the problems faced by Malay property developers and hoped to present it to Prime Minister Datuk Seri Najib Razak and the relevant authorities for further action.

By Business Times

Concerns over IOI’s Singapore venture

PETALING JAYA: IOI Corp Bhd's acquisition of 49.9% stake in Scottsdale Properties Pte Ltd may provide an opportunity for it to be involved in an iconic downtown development in Singapore but there are also concerns on the subdued outlook of the property market there.

CIMB Research said the substantial size and location of the South Beach development, which was close to other landmarks such as Suntec City convention centre and Raffles hotel, would make this project one of the most popular and prominent mixed-use development.

“But, this is partially offset by our concerns over the group increasing exposure to the property sector that has subdued outlook,” it said in report yesterday.

There were some concerns about Singapore's property outlook based on its government cooling measures and moderating home sales.

On Jan 13, it imposed tighter borrowing limits and a hefty stamp duty of 16% of the selling price for those who buy and sell within 12 months.

Last Friday, IOI Corp announced that its wholly-owned IOI Consolidated (Singapore) Pte Ltd, had subscribed 114.8 million shares or 49.9% equity interest in Scottsdale Properties for a cash consideration of S$114.8mil.

The other partner in Scottsdale is Ascent View Holdings Pte Ltd, wholly-owned by City Developments Ltd with 50.1% stake.

Scottsdale is involved in the development of South Beach property project with sizeable office, hotel, residential and retail components. Scottsdale holds a 66.66% stake in South Beach Consortium (SBC) while IOI Corp holds a 33.33% stake.

IOI acquired the stake in SBC from Elad Group for S$173.9mil. It was completed in April 5.

Also, IOI Corp and Ascent View might be required to contribute further equity in proportion to their respective shareholdings in Scottsdale (which is estimated to be in the region of S$500mil each) for the purpose of acquiring/redeeming the existing mezzanine notes that were earlier issued by SBC, for working capital requirements and to part finance the construction of South Beach.

In total, IOI Corp will invest S$816.8mil in the South Beach project that sits on a total land area of 376,925 sq ft which has a leasehold tenure of 99 years.

CIMB Research said the South Beach project was expected to be completed in 2015 and earnings would only start to trickle in 2013.

“Assuming a capital value of S$2,312 per sq ft, we estimate the gross development value of the project to be around S$2.3bil. With a supposedly a 20% profit margin, we estimate potential earnings of S$462mil.

“IOI Corp's earnings from its 49.9% share is expected to be about S$230mil,” it said.

Another bank-backed research analyst said although the acquisition price was quite attractive, it was not as relevant as the property market sentiment in Singapore as far as IOI Corp's investment was concern.

“With its government measures to cool down the property market there, we have no idea where the prices are heading from now on,” she said.

She added that the property sector commanded more than 20% of IOI Corp's operating profit while the rest was contributed by the plantation sector in its previous financial year ended June 30, 2010.

By The Star