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Monday, September 3, 2012

ECM keeps ’buy’ call on UEM Land

Shares in Malaysian property developer UEM Land rose more than 2 per cent after the company’s second-quarter net profit increased by more than a fifth on higher sales, underscoring a strong property market in the Southeast Asian country.

UEM Land’s net profit in the quarter to June 30 climbed 21 percent to 107.6 million ringgit ($34.44 million) from 88.8 million ringgit a year ago.

Research house ECM Libra kept its ’buy’ call on the stock saying the property developer was still confident of achieving its 3 billion ringgit sales target with the bulk of sales expected in the third and the fourth quarters.

By Reuters

IGB REIT's IPO said oversubscribed

The institutional tranche of Malaysia’s IGB Real Estate Investment Trust’s US$266 million listing is already oversubscribed, said two sources with direct knowledge of the matter, signaling strong demand for the deal.

The deal is set to be Malaysia’s fourth largest IPO this year and the REIT may become the Southeast Asian nation’s largest REIT with a possible market value of up to RM4.25 billion (US$1.4 billion), topping Pavilion Real Estate Investment Trust’s RM4.05 billion.

The IGB REIT offered 469 million shares, or 70 percent, of its 670 million IPO shares to institutions at a price range of RM1.15-RM1.25 per unit.

The sources said the offer had been covered “multiple times”.

“Most is covered at the top range,” said one of the sources, who declined to be identified as the matter is not meant to be public.

A second source added that the subscriptions were evenly split between foreign and local investors.

The offer, which opened on Aug. 28, will close on Sept 6.

The retail portion, offered at a maximum price of RM1.25 per unit, closes on Tuesday, according to a term sheet seen earlier by Reuters.

The property trust, which owns two Kuala Lumpur shopping malls — the Mid Valley Megamall and the Gardens Mall — hired CIMB Investment Bank and Hong Leong Investment Bank as the principal advisers and joint managing underwriters for the IPO.

CIMB, Credit Suisse and Hong Leong are the joint global coordinators. CIMB, Citigroup, Credit Suisse, DBS, Deutsche Bank, Goldman Sachs, Hong Leong, HSBC, JP Morgan and Maybank are the joint book runners.

The joint underwriters are AmInvestment, CIMB, Hong Leong and Maybank.

By Reuters

China says property controls still needed

BEIJING: Premier Wen Jiabao said Saturday it was too early to loosen curbs on speculative property investment, state media reported, as authorities keep a tight grip over China's once red-hot housing sector.

Wen, who was inspecting an affordable housing project said government efforts to rein in runaway housing prices had been largely successful, the official Xinhua news agency said.

"But the controls over the real estate market are still in a critical period," Wen said in the port city of Tianjin, southeast of Beijing.