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Tuesday, June 5, 2012

Pantai Plaza rebranded as Bangsar Trade Centre to house wholesale mall

Close inspection: Ramli (left) and Nong Chik checking out the BTC model after the signing ceremony.

PLANS to revive the mostly vacant Pantai Plaza are expected to commence in August and to be completed in stages.

Located along the Federal Highway, the plaza, renamed as Bangsar Trade Centre (BTC) will have a wholesale centre for food and beverage and hospitality industry.

Malaysia Building Society Bhd (MBSB) signed a RM120mil debt settlement agreement with Twin Pavilion Development Sdn Bhd to revive Pantai Plaza.

The agreement will also settle the debts of the plaza’s previous owner, Atlas Corporation Sdn Bhd.

Twin Pavilion Development chairman Tan Sri Ramli Ngah Talib said plans for the plaza included a corporate office tower, convention and exhibition centre, strata office suites and a hotel.

“We estimate 10,000 visitors daily with the potential to increase this figure exponentially when the surrounding commercial properties such as KL Eco City come into full occupancy,” he said at the signing ceremony, adding that the project has a gross development value of RM850mil.

Ramli added that each component in BTC will support the wholesale centre where manufacturers, suppliers, knowledge and financial providers are brought together.

Twin Pavilion Development chief executive officer Lee Seng Khoon said they would be refurbishing the plaza as well as some construction work.

“The existing podium with a space of 400,000 sq ft will be refurbished to house the wholesale centre where suppliers will be able to connect with buyers,” he said.

Lee added that they would be constructing towers, providing an additional 1mil sq ft of floor space.

“After the project’s completion, we will still be very much involved in this area as we will be retaining a majority of the mall and office space,” he said.

MBSB chairman Tan Sri Abdul Halim Ali who was also present at the event, said the agreement would also see MBSB extending end-financing assistance totalling RM120mil.

“We hope that BTC will become a new landmark that Kuala Lumpur can be proud of,” he added.

Federal Territories and Urban Wellbeing minister Datuk Raja Nong Chik Raja Zainal Abidin had witnessed the signing and launched the project.

He said the continuous urban renewal of the city was a necessity.

“Renewal can provide a city the opportunity to reclaim quality urban spaces.

“However, it does not mean merely putting cosmetic improvements into ageing buildings but to create sustainable urban development through innovation that adds value to the surrounding community,” he said.

By The Star

Programme now offered to properties nationwide with a RM20mil allocation

JOHOR BARU: The 1Malaysia Maintenance Fund (TP 1Malaysia), set up to help residents of private low- and medium-cost flats in Kuala Lumpur, will now be offered to high-rise properties nationwide.

Federal Territories and Urban Wellbeing Minister Datuk Raja Nong Chik Raja Zainal Abidin said a RM20mil allocation would be utilised for the programme to go nationwide.

“So far, we have received 43 such projects nationwide with six applications from Johor alone,” he said, adding that since the programme was launched two years ago, 12 projects worth RM5.3mil had been completed in Kuala Lumpur.

The fund is set up to help pay for repairs such as faulty elevators, new coat of paint for exterior walls, roof leaks and rewiring works.

Speaking to reporters after launching a briefing on the programme here yesterday, Raja Nong Chik said his ministry would carry out the maintenance works for private buildings while the Housing and Local Government Ministry would take care of public housing needs.

To qualify, Raja Nong Chik said the management body, committee or even a residents association could submit their requests for the grants.

“The process takes about seven to eight months,” he said. “The purchase price of the property must also be RM80,000 and below,” he said.

Raja Nong Chik said in Kuala Lumpur, about 25% of flat dwellers had failed to pay their monthly maintenance fees of RM60.

State Local Government, Housing, Arts, Culture and Heritage Committee chairman Datuk Ahmad Zahri Jamil said the state government had requested for funds for six projects with four in Johor Baru and one each in Kota Tinggi and Kluang.

He said such programmes helped to spruce up an area and allowed the price of the property to appreciate because of improved surroundings.

By The Star

Magna Prima plans RM832m mixed property project in Shah Alam

KUALA LUMPUR: Magna Prima Bhd's unit is acquiring 20 acres of land in Bandar Shah Alam for RM100mil for a proposed mixed residential and commercial project with a total gross development value (GDV) of RM832mil.

It said on Tuesday that Magna Ecocity Sdn Bhd (MESB) had signed a conditional sale and purchase agreement with PCM Bina Sdn to purchase the land.

MESB would pay RM70mil to PCM and settle the outstanding RM30mil via the issuance of 1.114 million new shares or at about RM26.92 per MESB Share.

Magna Prima said MESB would undertake the overall development of a mixed residential and commercial project, comprising 180 three-storey shop offices and 1,620 residential apartments.

"The gross development value of the proposed development is estimated at RM832.67mil and the total development cost is estimated to be RM624.83mil with an expected gross profit of RM207.84mil. The proposed development is expected to commence in 2013 and is estimated to be completed by 2016," it said.

By The Star

SP Setia named most trusted developer

KUALA LUMPUR: SP Setia has been named for the second time running as the developer Malaysians trust the most in the Reader’s Digest Asia Trusted Brands 2012 study.

In a statement today, the company said it took home the Gold Trusted Brand Award in the Property Development category at the gala awards dinner on May 29.

The SP Setia brand has grown regionally with the developer’s first international foray to Vietnam in 2007 when it joined forces with the country’s top state-owned conglomerate Becamex IDC Corp to develop EcoLakes at the MyPhuoc Industrial Park.

The developer’s regional reach now includes Melbourne, Australia, and Singapore.

The Reader’s Digest Study, now in its 14th year is carried out in eight markets across Asia (China, Malaysia, Hong Kong, India, the Philippines, Singapore, Taiwan, and Thailand) to determine the brands most trusted by consumers in 43 different product and service categories.

The study is based on responses to questionnaires distributed via Reader’s Digest copies as well as telephone interviews of randomly selected, upscale consumers, carried out by Ipsos, one of the world’s leading custom research firms.

By Bernama

Karambunai to record RM22.8m gains from KK land sale

KUALA LUMPUR: Karambunai Corp Bhd is expected to record about RM22.81mil in net gains from the sale of several pieces of land measuring about 94 acres in Bandar Sierra, Kota Kinabalu.

It said on Tuesday the net book value was RM22.15mil while the sale consideration was RM44.96mil.

The properties were acquired in March 1997 with an original investment cost of RM19.83mil, including incidental costs incurred.

Karambunai said it had signed sale and purchase agreements to sell 33.11 acres of leasehold land in Bandar Sierra to Sinkong Construction Sdn Bhd for RM15.86mil and another 3.27 acres of leasehold land for RM498,769.

The company also said it was selling 27.01 acres of leasehold land in Bandar Sierra to Yu Sin Kong for RM12.94mil and another 29.95 acres of leasehold land for RM15.65mil.

"Karambunai said the proposed disposals were part of Karambunai group's streamlining exercise by disposing of non-core assets. KCB Group is primarily involved in resorts operations and development in the Karambunai Peninsular, Kota Kinabalu, Sabah.

The proceeds from the disposals would be used to repay bank borrowing and fund the group's working capital requirement.

By The Star

SP Setia joins Sime Darby in Battersea bid

Sime Darby Bhd said it joined Malaysian developer SP Setia Bhd’s bid for London’s Battersea Power Station, Europe’s largest brick building.

“The consortium is positive that its plan for a mixed sustainable development will be well received,” Kuala Lumpur- based Sime Darby said in an e-mailed statement today.

The derelict 38-acre (15-hectare) site on the south bank of the River Thames was put on sale in February after its owners failed to pay lenders owed more than 500 million pounds ($770 million). At least 10 offers were made to buy the site, including one from Russian billionaire Roman Abramovich’s Chelsea Football Club Ltd., a person familiar with the matter said last month.

SP Setia is one of three remaining bidders for the landmark power station, Chief Executive Officer Liew Kee Sin said May 29. The defunct station, featured on the cover of the 1977 Pink Floyd album “Animals,” is about 2.2 miles (3.5 kilometers) from the Houses of Parliament and has been vacant for almost three decades.

Sime Darby is the country’s largest publicly quoted plantations group, while SP Setia is the Southeast Asian nation’s biggest listed property developer by sales.

The Employees Provident Fund, Malaysia’s biggest pension fund, has been approached to join the bid, though hasn’t made a commitment, Nik Affendi Jaafar, general manager for public relations said by phone today.

Planning permission was granted to Real Estate Opportunities Plc, controlled by Irish developer Treasury Holdings Ltd., last year for a 5.5 billion-pound redevelopment of the station. SP Setia tried to buy the debt related to the power station in November for 262 million pounds and the offer was rejected.

By Bloomberg

Positive on Glomac land buy

GLOMAC has entered into a sale and purchase agreement with Lee Chin Cheng Dengkil Oil Palm Plantations Sdn Bhd, to purchase a piece of agricultural land in Sepang, Selangor, measuring 191.75 acres, for RM66.8mil or RM8 per sq ft (psf).

The purchase will be financed via internally generated funds and borrowings.

Glomac intends to develop a mix residential development on the land.

Given the land size of about 200 acres, we believe this development is likely to replicate its existing townships like Bandar Saujana Utama (1,070 acres) in Sungai Buloh and Saujana Rawang (345 acres). The development will provide affordable housing.

Assuming land efficiency ratio is of 70% and there are 15 units terrace houses per acre as well as an average selling price of RM350,000 per unit, we estimate the township to potentially yield a gross development value (GDV) of RM700mil.

There are no similar land deals transacted within the area recently for comparison.

Referring to, the acquisition price at RM8 psf appeared to be on the high side if we compare it with the current asking prices of RM4 to RM9 psf for agricultural land in Sepang.

Nevertheless, if we compare the total land cost of RM66.8mil against the total estimated GDV of RM700mil, the land cost would account for 9.5% of total estimated GDV, which we deem is fair.

Glomac's balance sheet is healthy and with a net cash of RM31mil as at January, it should provide financial flexibility for the acquisition. Hence, we do not expect the land acquisition to reduce the group's ability to payout dividend in the future.

Given the rising property prices and land scarcity in first-tier locations in the Klang Valley, we expect property demand to be decentralised from first-tier locations to areas like Cyberjaya, Kajang, Puchong and Seri Kembangan.

As such, we are positive on Glomac's move to expand its landbank in Sepang. In 2012, the group has made two land purchases with estimated GDV replenishment of RM1.5bil.

There is no change to our financial year 2012 and 2013 earnings projections. However, we raise our financial year 2014 earnings by 2.9% as we expect the progress billing from this project to begin then.

Given the change in future earnings and cashflow projections, we raise our discounted free cashflow to equity valuation higher to RM1.10 per share from RM1.08 per share previously, based on an unchanged discount rate of 16%.

By The Star

KLCC Prop jumps on Kenanga upgrade

KLCC Property Holdings Bhd, owner of Kuala Lumpur’s Petronas Twin Towers, gained 5.1 per cent to RM4.09.

The stock, which headed for a record close, was upgraded to outperform from market perform at K&N Kenanga Holdings Bhd.

An outperform means the stock’s total return may exceed 10 per cent over 12 months, according to the report.

The share price estimate was raised to RM4.60 from RM3.50, it said.

By Bloomberg