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Saturday, November 27, 2010

Up Close and Personal with Oussama Kabbani


FROM the strife-torn city of Beirut comes a man with great expertise and a big vision. Oussama Kabbani was born in Beirut and educated in an environment of civil unrest.

Years of civil war have built a certain resilience in him and today Kabbani is rebuilding the city he grew up in. The politics is edgy; it has always been at the crossroads of many cultures, but it is a city he has grown to love and enjoy. Changes are still afoot but that's just the reality of politics.

It may take longer than usual to reconstruct Beirut but when he took on the job, he was fully aware that it was a task that would span various economic cycles. But Beirut will be rebuilt, because the Harvard-trained urban planner has a big vision.

You cannot have a small vision. You have to have a big one but how much it gets done depends on many factors. If a vision begins small, it becomes smaller, saysKabbani, who was in Kuala Lumpur recently.

No doubt, he's self-motivated and a realist too. When one takes on a project such as this (Beirut), one is inviting criticism. So I might as well be harsh with myself from the beginning.

Kabbani is banking on his experience in building and regenerating cities around the world in his task in developing Iskandar Malaysia, the growth corridor that is three times the size of Singapore. He is involved in Medini, one of the cities in Iskandar Malaysia.

The chairman of Millennium Development says the company's expertise is in development management services.

The company undertakes work on behalf of developers and investors in real estates. Essentially, it sets up the development strategy and undertakes all the work done by a developer. The only difference is the investment does not come from Millennium Development but from investors, who can be the government or the private sector.

Kabbani says Millennium Development offers clients a portfolio of services which includes business development, urban planning, architecture, finance, marketing, legal and construction management.

A client may be driven by the goal to build 100 buildings. But in my mind's eyes, I am building 100 communities because there is a desire for human interaction. We cannot live far from human interaction.

Whether it is Beirut or here, it is the same. You may have your laptop, but you want to go into the office, or the restaurant. We are busy by day, and by night we seek the sanctuary of our homes, and so we create residential areas which are calm and conducive for rest, he says.

But why cities? Kabbani begins in Beirut, which is today still undergoing reconstruction.

Other than being the city he grew up in, he has learned a lot rebuilding a war-torn city. He is learning from the past in order to rebuild the future. You have to plan for the end and work towards it. If you have 1,000 ha, you cannot do it all at once. How you get from the start to the end sometimes takes a long process and we build over different economic cycles, he says.

Not many professionals get the opportunity to work on a destroyed city. I wish I need not have to, but when I got the chance to do it, I might as well learn a lot from it.

Added value

Much of it involves learning on the job and that in itself, provides a lot of added value.

When you are building a city from rubble, you have to consider so many aspects, the planning, the politics, the economics and social issues, all of which goes beyond architecture. Beirut was where I learned. We set up a platform for good things to happen but the reality is things happen and we pray for things to be better, not worst. First, it is my home country. Also, there is the passion that went into the making of a city after war. I used to say this is the age of the bountiful and we consider ourselves a new generation that was going home to rebuild what other people have destroyed. If you don't have passion, you cannot do a good job.

The mind is not enough. It has to be the mind and the heart and I am proud to say that to a big extent, we have succeeded, he says.

Building cities is not a common passion and Kabbani says he has been lucky over the last 15 years to live at a time when building cities has become common. The company is involved in various city projects in the Middle East, Malaysia and Kazakhstan.

Solid foundation

Oussama gave the company 20 years to reconstruct Beirut but due to the political and economic situation, it will now take another 15 years to finish. However, the foundation is solid and it will mature.

We will have the right architecture and transportation principles, the land use, the right mix. Our objective is to create that energy in order to pull in more investment, interest and media attention.

Then it will take a life of its own. But binding all these together is quality. It is not something that you can easily quantify because quality starts from everything underground, on the ground, and over the ground.

Although he loves Beirut, over the years, he has also grown to enjoy other cities, especially those with surprises around the corner. He also likes cities where he does not need to drive.

What does one remember about the cities that one has visited? Each city has its own identity. Twenty to 30 years later, will it be remembered for the shape, landscape, the buildings, the financial power? There must be a timelessness about it.

He started building cities in the Middle East and the experience he gained from Beirut became very valuable. Today, building cities or regenerating them have become a demand. The rebuilding of Aktau in Kazakstan, after the fall of the Soviet Union, is the city's aspiration to join the global economy.

Human aspect

He says that although the company is based in the Middle East, there is a human aspect that is synonymous with all mankind.

We may be different as a people, but equal as human. We are global, very global in our services but also very local wherever our projects may be, because as a Lebanese, there is always the Lebanese diaspora. We are all over the place and there is a natural tendency to assemble together. Unless you seriously respect another, you are bound to have trouble.

I went to the West to do my Masters, but was educated in Beirut, under the bombs. Beirut and those times were the school of life. As for my personal life, I come from a family of mixed marriages. And Lebanese are people who articulate their thoughts well.

And so we articulate our views and thoughts during meal times or when we come together.

By The Star (by Thean Lee Cheng)

Property buyers can benefit from M&As

Property buyers can hopefully look forward to wider choices, more innovative and quality property products to choose from if the spate of mergers and acquisitions (M&As) involving property companies translate into integration of skills, resources and innovation among industry players.

With more Malaysians turning to property investment these days, it will be welcomed by property buyers if these M&As promote the coming together and fusion of talents and capabilities among industry peers to bring to the market more well-planned and quality projects.

I believe one of the main factors for the sudden urge for developers to want to become part of a bigger entity is the fact that the Federal Government is opening up a number of its prized land bank around Kuala Lumpur and the Klang Valley for redevelopment.

Among the government-owned prime land in Kuala Lumpur and other parts of the Klang Valley are the 50 acres at Jalan Cochrane; 20-30 acres in Ampang Hilir (near KL city centre); and the 3,300 acres of Rubber Research Institute land in Sungai Buloh. Others comprise smaller parcels in Jalan Stonor, Brickfields, and Bukit Ledang (off Jalan Duta).

Notwithstanding the intense competition for the rights to develop these government-owned land, it is important to ensure optimum benefits for the people and country by upholding the utmost transparency through open tenders in the award of the land for development.

For both the public and industry players, the redevelopment of these land offers a huge opportunity to turn around and inject more vibrancy into the city's property landscape. Most importantly, all the attributes should be in place for Kuala Lumpur to be accepted into the list as one of the most livable metropolis in the world.

Kuala Lumpur and the Greater Klang Valley can certainly do with an efficient and well integrated public transportation system; a clean, green and safe environment; and a lively cultural and performing arts scene which are among the missing links in the city today.

The project planning should not be motivated just by profits, but should be demand-driven, and add value to the living, working and leisure environment.

It is imperative that a thorough and in-depth market study be conducted when drawing up the master plan for the redevelopment programme. In the planning and execution of these projects, input from the public, community groups and industry players should be sought and be given due consideration.

There is certainly a shortage of affordable landed housing (priced between RM200,000 and RM300,000) in the Klang Valley today and ensuring more such projects in the new development plans will be a timely gesture to ease the burden of the common folks.

If the implementation of the enlarged Kuala Lumpur master plan is done with best practices and attention to details, the people will be able to enjoy a more holistic and vibrant city. It will also be a boon to property values given the higher value perception bestowed on a Kuala Lumpur address.

With such massive development opportunities opening up, it is no wonder there is this sudden expansion frenzy among industry players.

Since UEM Land Holdings Bhd stated its intention to take over Sunrise Bhd earlier this month, two other mergers involving MRCB and IJM Land, and Sunway Holdings Bhd and Sunway City Bhd have been announced.

The first two mergers involve government-linked entities with private developers while the third involve two sister companies in the Sunway stable. It marks the creation of Malaysian property giants that have the heft and ambition to go regional, if not global.

The merger will boost their land bank, product offerings and expertise to enhance their market position.

With the growing competition, industry players see the need to strengthen their market capitalisation, land bank, geographical presence and expertise.

The marriages of these companies will allow the involved partners to leverage on each other's strengths and ensure better utilisation of resources. They will also create a bigger vehicle with a stronger balance sheet and market capitalisation to undertake bigger projects.

With their enlarged capacities and capabilities, there are better chances of winning bids for larger projects. Of course, all eyes are on the redevelopment of the massive Rubber Research Institute land in Sungai Buloh.

Besides flexing their muscles locally, developers are also seeing the need to venture offshore as the home market, while still robust, has a limit to its growth potential.

Globalisation is taking on a new vigour and there are opportunities for local developers to spread their wings to become international players.

Having a good brand and stronger financial backing and expertise are some of the prerequisites to carve a niche in the international market place.

While there are merits to being big, let's not forget that many conglomerates have failed after they grew too big and clumsy. Most of the time, these gigantic organisations lost track of their business forte and started to diversify into too many non-related activities. So it is important for them to keep level headed and not become arrogant and lose their footing in the process.

Despite the frenzy to go BIG, there is certainly room for the smaller and medium-sized developers which are appreciated for their quality projects, timely delivery and good after-sales service.

Deputy news editor Angie Ng believes industry players who uphold the basic tenet of appreciating and engaging with their customers will survive the good and bad times.

By The Star (by Angie Ng)

WCT bags Contractor of The Year Award


The Construction Industry Development Board (CIDB) has presented WCT Bhd with the Contractor of The Year Award during the Malaysian Construction Industry Excellence Awards 2010 (MCIEA 2010) last night.

WCT is a well-known name in the global construction market. Its mega projects abroad include the Abu Dhabi F1 Circuit, the New Doha International Airport, Bahrain City Centre, the Bahrain International F1 Circuit and Platinum Plaza in Ho Chi Minh, Vietnam.

"The group has reached the far shores of development, literally and metaphorically, making it an icon to the Malaysian construction industry," CIDB said in a statement.

The group, along with Sunway Construction Sdn Bhd and ShinEversendai Engineering (M) Sdn Bhd were also presented the International Achievement Award - Special Mention which honours the achievement of Malaysian contractors registered with CIDB for their outstanding and credible recognition in overseas construction venture.

WCT adviser Chua Siow Leng was presented the Prominent Player Award to recognise his more than two decades of contribution towards the betterment of the industry.

CIDB has named property developer Ireka Corp Bhd founder Lai Siew Wah as Chief Executive Officer of the Year.

Putra Perdana Construction Sdn Bhd was also recognised for its Energy Commission diamond building, bringing home the Innovation Award.

By Business Times

Friday, November 26, 2010

GuocoLand Malaysia launches new phase of semi-detached homes


Overwhelming response: Amberley 2 semi-detached parkhomes

The Emerald West neighbourhood promises to add a new dimension in the fast growing and established Rawang with this weekend’s launch of Amberley 2 semi-detached parkhomes.

Amberley 2, developed by GuocoLand Malaysia, the property arm of the Hong Leong Group, offers an enticing proposition to home owners wishing to enhance their lifestyles and upgrade from their existing link houses.

The new phase of 40’ x 80’ two-storey semi-D parkhomes comes barely a month after the overwhelming response of its first phase launch in October with a take-up rate of 80 per cent within two weeks of its unveiling.

GuocoLand Malaysia will launch the new parkhomes at the Amberley 2 Fiesta at the Emerald Sales Gallery on Nov 27-28 (8am to 10pm). Exciting activities planned for the weekend include hot air balloon rides, fireworks display, and a live concert by local recording artistes.

“Amberley 2 reaffirms GuocoLand Malaysia’s going forward efforts to introducing homes that exceed customers’ expectations and making the well-planned Emerald a township of choice,” said GuocoLand (Malaysia) Bhd Managing Director Yeow Wai Siaw.

“We have more exciting projects in the pipeline and we will leverage on GuocoLand Malaysia’s excellent track record and our reputation in the marketplace to enhance the appeal of Emerald.”


Amberley 2 offers high ceilings and generous window openings for better ventilation and abundant light.

Yeow said many homeowners and investors had benefited from the maturity and popularity of the Emerald neighbourhood, adding its properties, including the April launched and sold out Ebony link homes had appreciated by over 20 per cent this year.

The freehold 1,000-acre site, he added, is a fast growing self-contained township with an approved Chinese school currently under construction and a planned hypermarket.

Priced from RM618,800, the thoughtfully-designed Amberley 2 offers three variants with four bedrooms (en-suite bathrooms for all first floor rooms), open courtyard, high ceilings and generous window openings for better ventilation and abundant light, separate laundry area and covered yard.

The Fiesta will offer exclusive deals, including attractive home financing schemes and rebates for confirmed bookings during the weekend.

Emerald West is part of the Emerald township, a joint-venture project between GuocoLand Malaysia and Hong Bee Land Sdn Bhd, with the former as project manager. Over 1,400 houses, including linked and cluster homes, semi-detached and premium bungalows have been completed and handed over since the township was launched in 2001.

Apart from excellent infrastructure, the township enjoys good accessibility to Kuala Lumpur and surrounding areas via the North-South Highway, New Klang Valley Expressway and the Guthrie Corridor Expressway.

Emerald is located within easy reach from Rawang town and its commercial hub, just 20 minutes drive from the Jalan Duta toll. As an established town, Rawang has all the essential amenities including banks, post-office, restaurants, hypermarkets, fresh produce market and a KTM Komuter station.

By The Star

Will there be more property mergers?

A major problem for Malaysian property companies is that there are not enough shares readily available for trading, something that foreign investors love, says an analyst

Some two years ago, an analyst remembers telling a cash-rich property group to buy rivals with land to take advantage of a weak stock market.

But worries over takeover issues led the group to buy land instead. In hindsight, it was a major opportunity lost.

Now, major listed property players in Malaysia are in a bind because three recent deals to create much bigger companies are likely to push them to do the same if they want to remain attractive to investors.

"They have no choice, some of them don't want to be off the radar screen of investors," said CIMB research head Terence Wong.

The flurry of deals comes as the stock market hit record highs. On November 4, UEM Land Holdings Bhd offered RM1.4 billion to buy rival Sunrise Bhd, followed by news of a merger between Malaysian Resources Corp Bhd (MRCB) and IJM Land Bhd to create a group with a market value of RM7 billion. Then, Tan Sri Jeffrey Cheah proposed to combine his companies Sunway Holdings Bhd and Sunway City Bhd (SunCity) in a RM4.5 billion deal.

The first two deals reflect the government's intent to create bigger companies to lure more foreign investors to Malaysia's stock market, analysts said.

UEM Land is ultimately controlled by state investment arm Khazanah Nasional Bhd, while both MRCB and IJM Land have the Employees Provident Fund (EPF) as major shareholders. It is quite clear that the EPF is driving the merger, analysts said, as it seeks to develop the strategic and massive Rubber Research Institute land next to Kota Damansara, Selangor.

Both deals are also about securing expertise as the buyer is in a hurry to grow. UEM Land needs Sunrise for high-end property development and marketing, while EPF wants a developer that could build townships (IJM Land) as well as commercial projects (MRCB).

But the Sunway deal is more about the ability to fight for bigger jobs and address the liquidity issue. A major problem for Malaysian property companies is there are not enough shares readily available for trading, something that foreign investors love, said Maybank IB's analyst Wong Wei Sum.

This means the stock price will have a tough time catching up to its fair value. In SunCity's case, it has been trading at around RM4, while analysts tag its fair value at almost RM7.

"If you want to have better value, you go for the size," she said.

But some property executives contend there are downsides to becoming a bigger group.

"You could end up being a lumbering giant," one said. He cited how Mah Sing Group Bhd was able to buy some 25 hectares of land in Batu Ferringhi, Penang, for RM157 million. Bigger rivals had also bid for the land but Mah Sing was able to win as it moved faster than the competition.

By Business Times

Sunway-SunCity merger proposal gets thumbs up

PETALING JAYA: The proposal to merge Sunway Holdings Bhd and Sunway City Bhd (SunCity) under a single entity via a takeover by Sunway Sdn Bhd (Newco) has received good response from analysts who view it as a positive synergistic move.


The Sunway Group chairman Tan Sri Jeffrey Cheah(left) and Sunway Holdings Bhd managing director Yau Kok Seng (right) at a briefing on Wednesday to announce the merger. Starpic by Chan Tak Kong

Tycoon Tan Sri Jeffrey Cheah, who is behind Newco, also holds 47% and 44% in Sunway and SunCity respectively.

Credit Suisse said investors generally felt the proposed merger was to eliminate inefficiency from duplication of property businesses.

Both companies have their respective property divisions, which means two different property teams running independently, and in some cases, competing against each other for the same property pie, despite having a common shareholder and the same Sunway branding, it said in a report yesterday.

Also, the research house said, the new larger entity would make it more investable.

As two separate entities, the market capitalisation of RM1.4bil for Sunway and RM2.1bil for SunCity made them not so investable and relatively illiquid despite having over 50% free float.

This resulted in both stocks trading at a significant discount to their peers.

We believe this was one of the key drivers for the merger, said Credit Suisse.

The management of the companies was quoted as saying the rationale behind the merger was to have a new entity with a bigger scale and able to extract synergies through economies of scale and integration.

On Wednesday, Sunway and SunCity received a takeover offer from Newco for RM4.5bil in cash-and-share swap.

The exercise entails Newco offering RM2.60 per Sunway share, RM1.50 per Sunway warrant and RM5.10 per SunCity share and RM1.29 per SunCity warrant.

Newco will issue an equivalent value of shares representing 80% of the offer prices and pay cash for the remainder 20%.

The offer would also include Newco issuing new warrants for free to all shareholders of SunCity and Sunway on the basis of one Newco warrant for every five Newco shares.

Based on SunCity and Sunway's last traded prices of RM4.49 and RM2.25 respectively before the announcement, the offer prices represented a premium of 13.6% and 15.5% respectively.

The merged entity could be valued at RM4.5bil, making it the fourth largest property company in Malaysia.

But, Credit Suisse said, at this stage it was not known who would be leading the merged entity and whether key management personnel of the respective divisions would be retained.

At this stage, we are not aware of Government Investment Corp's (GIC) stand on the proposed merger, given that the merger will dilute its current 100% exposure to property to 65% in Newco, it said.

GIC of Singapore holds a 21% stake in SunCity.

We also do not know if Newco will retain its other businesses or dispose of its non-property businesses, like the trading, quarry, construction, and building materials divisions, said the research house.

Meanwhile, Hwang-DBS Vickers Research in a report said the offer price of RM2.60 per share was fair for Sunway.

The offer price is at 4% discount to our sum-of-part derived from target price of RM2.70.

This values Sunway at 13 times of its financial year 2011 earnings per share and 1.6 times book value versus the sector average of 18 times and 1.6 times respectively, it said.

It added that Sunway would be able to leverage on the presence of GIC, SunCity's strategic shareholder and the larger market cap would help build a stronger institutional following.

Cheah is expected to have more than 40% in Newco and GIC 12%.

By The Star

RM8bil spill-over effects from RM2.7bil Penang Sentral


A general view of the Penang Sentral project’s first phase

GEORGE TOWN: The RM2.7bil Penang Sentral project in Butterworth is expected to generate economic spill-over effects of about RM8bil when the entire project is completed 10 years from now.

Malaysian Resources Corp Bhd (MRCB) executive director Datuk Ahmad Zaki Zahid said at a press conference that work on the first phase, comprising an integrated transportation hub with a retail component, would start next month.

The first phase, estimated to have a gross development value of at least RM400mil, is scheduled for completion by Dec 2013.

Work on the second phase is expected to start even before the completion of the first phase, he said. Work on the third and final phase is expected to start five years from now.

The second and third phases are commercial components, comprising a commercial hub, including office towers, serviced apartments, a hotel and waterfront amenities, scheduled for completion 10 years from now.

Zaki spoke after the Land Public Transport Commission chairman Tan Sri Syed Hamid Albar launched the Rapid Penang I Planner logo.

In May this year, MRCB Utama Sdn Bhd project manager (project/property) Zamri Mat Zain had said that the first phase would miss the July 2011 completion deadline due to delays in land acquisition.

Zaki said construction of the first phase was likely to generate some 2,500 jobs. By the time the entire project is completed, some 15,000 jobs would be created, generating an economic spillover effect of about RM8bil, he said.

Ahmad Zaki added that the gross development value of RM2.7bil was a conservative figure, which was likely to increase next year.

The Penang Sentral project, developed by MRCB in partnership with Pelaburan Hartanah Bumiputera Bhd, is part of the Northern Corridor Economic Region initiative.

The two companies formed a joint-venture firm, called Penang Sentral Sdn Bhd, which would undertake the development of the transport and commercial hub.

MRCB Selborn Corp Sdn Bhd, a subsidiary of MRCB, has been appointed to manage the development, design, construction, completion and maintenance of Penang Sentral.

The transport hub is expected to cater to approximately 65 million passengers a year.

Meanwhile, LPTC chief executive officer Mohd Nur Ismal Kamal said that the commission would next month start to finalise the public transport policy for the country.

It will take nine months to finalise the policy, as the LPTC needs to assess the data collected from all over the country on the needs for public transportation in different towns and cities, he said.

We will then know what kind of public transport programme is needed for which towns and cities in the country, he said.

By The Star

Ireka secures RM232m office, hotel project in KL

KUALA LUMPUR: IREKA CORPORATION BHD has secured a RM232.74 million contract for the proposed offices and hotel development in Kuala Lumpur.

It said on Friday, Nov 26 its unit Ireka Engineering & Construction Sdn Bhd had received a letter of intent from Transmission Technology Sdn Bhd for the project.

Ireka said the project involved architectural and mechanical and electrical works for basements and the 13-level podium and also the 27-storey and 37-storey office towers.

Earlier, it announced net loss of RM87,000 in the second quarter ended Sept 30, 2010 compared with net profit of RM2.13 million a year ago after accounting for the share of loss in Aseana Properties Limited.

Revenue rose 21% to RM108.02 million from RM89 million and it recorded loss per share of 0.08 sen compared with earnings per share of 1.87 sen.

For the first half, revenue rose 11.5% to RM209.736 million from RM174.610 million mainly due to higher volume of construction works being completed during the period.

At the pre-tax level, it recorded a pre-tax loss of RM2.868 million, as compared to a pre-tax profit of RM5.789 million in the previous corresponding period.

“The loss is after accounting for the share of loss in Aseana Properties of RM7.503 million and also a mark-to-market loss for share investment in Kinh Bac City Development Shareholding Corporation of RM1.986 million. Excluding these two items, the Group’s pre-tax results would be positive at RM6.613 million,” it said.

By The EDGE Malaysia

Glenmarie sees RM380m GDV from project

Glenmarie Properties Sdn Bhd expects a total gross development value (GDV) of RM380 million for its newly launched project, Glenmarie Gardens, in Shah Alam, said chief executive officer Mohd Radzman Othman.

Glenmarie Gardens is an exclusive and low-density enclave comprising 70 units of two-storey and two-and-a-half-storey bungalows on a freehold land in Glenmarie is expected to be completed in September 2012, he told reporters after
the project launch in Shah Alam today.

He said the houses will be built in two phases, with Phase 1 comprising 14 units. Construction work for Phase 1 will start in May next year.

The houses come in seven distinctive architectural designs, featuring their own characteristics to suit the different needs of the potential owners, he said.

Mohd Radzman said the build-up area starts from 5,910 square feet and tops at 8,033 square feet while the land area starts from 8,364 square feet and stretches up to 14,693 square feet.

Glenmarie Properties formerly known as HICOM Properties Sdn Bhd is a trusted name in property development and the hospitality industry.

Its iconic projects include Glenmarie Court, Glenhill Saujana, Glenmarie Residences and Glenpark, all within the vicinity of Glenmarie and Shah Alam, and on the commercial development portfolio completed projects include the Accentra Glenmarie and Glenmarie Industrial Park.

By Bernama

Malaysia’s premier cybercity celebrates vibrant living through camera lenses


Clockwise from top left: Life category clinched by Foong Zaai Yuen, Nature category by Muhammad Syafiq bin Adnan and Architecture category by Ngeow Yen Churn.

Cyberview Sdn Bhd, landowner and development spearhead of Cyberjaya recently announced the winners of Cyberjaya – Images of Glory digital photography contest.

The contest, which was held from July to August this year, featured the three categories of Live, Architecture and Nature and attracted more than 1,000 entries. The entries, which were published online at www.cyberview.com.my/dpc-vote, were narrowed-down to the winners based on a combination of popular online public votes and scoring by a panel of professional judges.

“We were thoroughly impressed with the calibre of the photography skills and personal interpretations of Cyberjaya life expressed through the contest entries. It was our goal to give Cyberjaya a platform to present the cyber city’s four pillars of Live, Study, Work, Play and the results are a tremendous success,” said En. Ir. Hafidz, Managing Director of Cyberview Sdn Bhd.

“Each one of these images reflects a different facet of life in the city, be it through the way our community lives, the architecture, or the natural beauty within it. We’re delighted so many people wanted to share their experiences through this competition, and we even had participants from all over Malaysia,” he added.

The first prize winner received RM1,500 in cash, while the second and third place received RM1,000 and RM750 in cash respectively. All winners and consolation prize recipients also received a certificate of participation.

The prizes were presented by En. Ir. Hafidz and Rashid Mat, General Manager for Business, Corporate Communications and Planning for Cyberview. As an added recognition of their achievements, all photos from first to third places in each category will be permanently displayed at the foyer of the Kelab Komuniti Taman Tasik Cyberjaya.

Life in Cyberjaya
Foong Zaai Yuen clinched first prize in the Live category with an interpretation of the burgeoning development scene at Cyberjaya – a black-and-white portrait of a tractor in the midst of earthworks.

Foong is a software engineer who is intimately familiar with life in Cyberjaya, having started her campus life in Multimedia University and working in Cyberjaya since. According to the judges, Foong aptly captured the daily life she witnesses and enjoys in the cybercity in this simple yet powerful picture. “I do not own a camera, and yet I always borrow cameras from my friends who are avid photography fans. And yes, I am a contest lover”, said Foong.

Majestic sights
The Architecture category was dominated by entries showcasing new and existing buildings in Cyberview against serene Cyberjaya landscapes.

Ngeow Yen Churn took home first prize for a picture of development in Cyberjaya bathed in the evening sunset.

Ngeow is an engineer and researcher who has been living in Cyberjaya for the past six years and he has seen this city grow to fulfil its full potential. “Capturing Cyberjaya on camera is always interesting as the landscape is so beautiful. I especially love wide-angle views of Cyberjaya with fluffy clouds on the sky, and my entry was no exception. The sunsets here are awesome! Every day is a new experience at Cyberjaya”, said Ngeow.

For more of Ngeow’s work, visit www.photogmao.com.

Serenity
Life in Cyberjaya is not always full of the hustle and bustle of new developments and people who live, study, work and play in the cybercity. Muhammad Syafiq bin Adnan captured the serene side of the Cyberjaya with his still-life portrait of a lone rowboat at dusk at Cyberjaya’s lake gardens, which garnered the top place in the Nature category.

Syafiq works as a MainBoard designer in Sony EMCS but photography is a major passion in his life. No stranger to success, his win represents his second accolade as champion in a photography contest for the Nature category. “I love everything about photography, and it doesn’t matter whether I do it for contests or for leisure. I just love capturing something that I can share,” said Syafiq.

To view Syafiq’s photos, please visit www.capixadnan.com.

As the youngest contestant at only 15, Crystal Ng Pei Qi clinched third prize in the Nature category, while also taking home consolation prizes for both the Live and Nature categories. “After being elected as a member of the Cyber Brigade in my school, I gradually developed an interest in digital photography and I bought my first DSLR in 2009,” she said.

Ahmad Rafidi Rofie, another notable contestant, came all the way from Penang to Cyberjaya over a couple of weekends just to capture dawn photos of the cybercity for the contest. His hard work was rewarded when he won a consolation prize in the Architecture category.

“We were pleasantly surprised with the quantity and quality of the entries. The judges had a tough time determining the winners,” said En. Ir. Hafidz.

“Over the years Cyberview has actively carried out its role in masterminding the development of Malaysia’s pioneer and premier cyber city. The amount of interest which poured in for this competition alone is a clear testimony of our success in developing Cyberjaya into a vibrant place to live, study, work, and play,” he added.

By The Star

Cyberview organises talks to raise green awareness

CYBERJAYA: Cyberview Sdn Bhd wants to lift the Green City status of Cyberjaya by pulling together key stakeholders to share ideas and knowledge through a series of talks.

The iGREET series (Information on Green Technology), which started in May, is held once a month and is among the initiatives that Cyberview has taken to raise green awareness among the Cyberjaya community.

Managing director Hafidz Hashim said the company conceived the iGREET series an initiative to champion ecological responsibilities for Malaysia's leading cybercity and MSC Malaysia hub.

Cyberview is in a unique position to bring together key stakeholders including Cyberjaya's local authorities, building developers, tenants and community members in one place to hear how green technology can translate into long-term benefits, he said in a statement which was given out at the sixth iGREET seminar yesterday.

At the seminar yesterday, media and guests were given a presentation of Proton Holdings Bhd's innovative hybrid car that was slated to be launched next year.

By The Star

YTL's Q1 net profit jumps to RM279m

YTL Corp Bhd's first-quarter net profit for the period ended September 30 2010 jumped by 34.4 per cent to RM278.9 million over RM207.5 million recorded last year.

Revenue for the first three months of the year ending June 30 2011 improved by 12.1 per cent to RM4.4 billion compared with RM3.93 billion previously.

The group told Bursa Malaysia yesterday that the increases in revenue and profit were substantially due to better performance in its multi-utilities business segment and higher recognition from its offshore property development projects.

In a statement, YTL group managing director Tan Sri Francis Yeoh said it had made a strong start to the current financial year.
"We expect the rest of the year to be promising," he said.

Yeoh said the launch of the Yes 4G mobile Internet service with voice last week and creation of its ecosystem were geared towards spawning further innovation and investment.

On other fronts, he said the group had earlier this week announced the restructuring of its property development businesses.

The restructuring was part of a wider ongoing rationalisation exercise to reorganise YTL's property, retail and hotel assets, and house them within the relevant business divisions.

This started last year with the repositioning of Starhill REIT in Malaysia as a global hospitality REIT, involving the disposal of the trust's retail assets to Starhill Global REIT in Singapore, which was completed in June 2010.

"Starhill REIT will now focus fully on hotel and other hospitality-related assets, both in Malaysia and abroad, whie the concentration of our property development assets under one umbrella is targeted at transforming the division into an international property developer," he said.

By Business Times

Thursday, November 25, 2010

Sunway, SunCity in RM4.5b merger

Tycoon Tan Sri Jeffrey Cheah plans to merge the construction and property firms he controls, Sunway Holdings Bhd and Sunway City Bhd (SunCity), in a deal worth RM4.5 billion to compete more effectively at home and in the region.



The move, which is likely to create Malaysia's fourth largest property company by market size, is the third property-related merger to be anounced this month.

Earlier this month, UEM Land Holdings Bhd said it wanted to merge with Sunrise Bhd to create the country's largest property group with a market size of over RM9 billion.

On Tuesday, IJM Land Bhd and Malaysian Resources Corp Bhd announced their merger plans to become the second largest group.

"This merger gives us the benefit of size, synergy and branding," Cheah, the Sunway group's founder, told reporters at a press conference yesterday.

He said the timing for such an exercise was good, with the share prices of both companies having come up to "a very equitable" level.

The two firms' assets and liabilities will be acquired by a new company, Sunway Sdn Bhd, which will be listed in their place on Bursa Malaysia.

The deal, including the listing, is expected to be completed by the middle of next year.

The merged entity will potentially have a market capitalisation of RM3.5 billion, combined revenue of RM3.3 billion and total assets of about RM8 billion.

It will also have a presence in 12 high-growth markets in the region and over 9.7ha of landbank, Cheah said.

He dismissed a suggestion that the merger was a move to help it stave off any potential takeovers, saying it had more to do with right market conditions and the need to scale up for size.

"I am not fearful of being a takeover target," he remarked, adding that "when you have a bigger-sized company, you can take on bigger projects".

The two firms' businesses will be acquired by Sunway at an equivalent of RM2.60 for each Sunway Holdings share and RM5.10 for each SunCity share.

Sunway will pay with RM900 million cash and Sunway shares, with free warrants attached.

After the purchase, Sunway Holdings and SunCity will undertake a capital repayment exercise to distribute the proceedings to shareholders.

Cheah, who now owns 46 per cent of Sunway Holdings and 44 per cent of SunCity, said he would retain a controlling stake of about 44 per cent in the new entity.

The second largest shareholder will be The Government of Singapore Investment Corp, with a 12 per cent stake.

Shareholders will have to approve the merger at an extraordinary general meeting, at which Cheah will refrain from voting.

Sunway Holdings and SunCity yesterday reported third quarter net profits of RM48.5 million and RM138 million, respectively.

"Going forward, (with the merged entity), we're still confident of double-digit growth (in financial performance)," Cheah said.

Trading in both the stocks, which have been suspended since yesterday pending the merger announcement, will resume today.

Sunway Holdings was last traded at RM2.25 and SunCity at RM4.49.

By Business Times

Sunway Holdings, SunCity in RM4.5bil merger deal


The Sunway Group chairman Tan Sri Jeffrey Cheah(left) and Sunway Holdings Bhd managing director Yau Kok Seng (right) at a briefing on Wednesday to announce the merger. Starpic by Chan Tak Kong

PETALING JAYA: Sunway Holdings Bhd and Sunway City Bhd (SunCity) have received a takeover offer from Sunway Sdn Bhd (Newco), a company controlled by Tan Sri Jeffrey Cheah (pic), for RM4.5bil in cash and share swap.

The exercise entails Newco offering RM2.60 per Sunway share, RM1.50 per Sunway warrant and RM5.10 per SunCity share and RM1.29 per SunCity warrant.

The offer prices are to be satisfied via the issuance of an equivalent value of Newco shares representing 80% of the offer prices and the remainder 20% in cash. The offer would include Newco issuing new warrants for free to all shareholders of SunCity and Sunway on the basis of one Newco warrant for every five Newco shares.

Based on SunCity and Sunway Holdings' last traded prices of RM4.49 and RM2.25 respectively, the offer price represented a premium of 13.6% and 15.5% respectively.

This transaction will see three key advantages, namely size, synergies and branding, Cheah, who is also the chairman of the Sunway group, said in a briefing to announce the corporate exercise.

The immediate and obvious advantage of this merger is a bigger and better capitalised entity. Once the offer is accepted and approved, the merged company will have a potential market capitalisation of over RM3.5bil, he said, adding that based on analysts consensus, the merged entity would have combined total revenue of more than RM3.3bil.

As at June this year, total assets for both companies stood at more than RM8bil.

To a question, Cheah said the merger was due to right market conditions. He said the timing was good and the share prices of both companies had come to an equitable level. It's a good time to do it (merging).

Asked if the move was to prevent a takeover by others, Cheah said the group was not fearful of being taken over.

Size brings us opportunities. We will have access to a larger market and the ability to bid for projects with higher value, particularly in international markets, he said.

Following the corporate exercise, both Sunway Holdings and SunCity will be delisted. Subsequently, Newco will seek a new listing on Bursa Malaysia subject to obtaining the required approvals.

Newco, owned by Cheah and his daughter Sarena Cheah, will consolidate all business operations of both companies under one listed entity, Sunway Bhd. The exercise is expected to be completed by mid-2011.

Following the acquisition, Sunway Holdings and SunCity will proceed to distribute Newco shares, cash and Newco warrants to its respective shareholders through a capital reduction and capital repayment exercise.

Cheah and Sarena currently own direct and indirect stakes of about 43.68% in SunCity and 46.53% in Sunway Holdings. Their stake is around 44% in the merged entity.

Sunway Holdings reported a net profit of RM48.5mil, or 8.4 sen per share, in the third quarter ended Sept 30 on the back of RM489mil in revenue, driven by the construction, property development and trading and manufacturing divisions.

Sunway Holdings said its quarterly results included a RM4.9mil gain arising from the adoption of FRS 139. For the nine months ended Sept 30, Sunway Holdings posted a net profit of RM136.99mil on revenue of RM1.49bil.

Cheah said the group had been growing quite nicely. However, he said the rate of growth might not be huge due to the larger base.

In the notes accompanying its financial results, Sunway said the construction division was expected to record impressive profits backed by a healthy outstanding order book of RM2.3bil of which about 60% are overseas construction contracts.

The group also expects sustainable activity in the local construction scene in the next few years with the pick-up in private development activities as well as from the recent announcement of the Budget 2011 and Economic Transformation Programme.

The property development division has unbilled sales of RM400mil from existing property projects, both locally and overseas. This division will continue to contribute positively to the group's earnings in the current and coming year with income from upcoming property launches, it said.

By The Star

JV to develop RM700m township

KUALA LUMPUR: Syarikat Majuperak Bhd, a wholly-owned unit of Majuperak Holdings Bhd, has teamed up with Xtreme New Sdn Bhd to develop a mixed township worth RM700mil in Batu Gajah, Perak.

Its chairman, Datuk Seri Raja Ahmad Zainuddin Raja Omar, said the project, involving about 240 ha, was expected to be completed within 10-15 years.

For a start, the company plans to develop a theme park with foreign companies, he said at the joint-venture signing ceremony between both companies here yesterday.

He said currently, the company was in talks with several foreign companies from Australia and China to develop the theme park.

The talks are expected to be concluded in a couple of weeks, he said.

Raja Ahmad Zainuddin said the ground-breaking ceremony was expected to be held early next year.

By Bernama

Analysts positive over IJM Land-MRCB merger

Combined entity will have stronger balance sheet, appeal to foreign investors

PETALING JAYA: Analysts are generally positive on the merger proposal between IJM Land Bhd and Malaysian Resources Corp Bhd (MRCB) although details of the proposal have yet to be revealed.

On Tuesday, IJM Land and MRCB signed a memorandum of understanding pursuant to the proposal that only revealed the merger would involve a share-swap whereby the shares of IJM Land and MRCB would be exchanged for shares in a new incorporated company.

The exchange price is RM3.65 per IJM Land share and RM2.30 per MRCB share. Kenanga Research said the offer price for MRCB and IJM Land was pegged at 2.6 times and 2.48 times price-to-book value respectively.

It said this was fair considering that the combined entity would have a market capitalisation of RM7bil and would become the second largest property company with improved liquidity and market positioning that would appeal to foreign institutional investors.

Kenanga said the new company would essentially be a property company and would look to divest its other businesses like infrastructure, concession and construction.

The research house said it would also be a formidable entity with a stronger balance sheet and would stand a better chance in securing a meaningful role in the development of the Employees Provident Fund's (EPF) Rubber Research Institute land.

We advise investors to subscribe to the offer and convert their shares to the new company shares. Only then will they be able to participate in the new growth under the might of the combined entity, Kenanga said in a report yesterday.

OSK Research viewed the proposed merger as synergistic and complementary to both property businesses given the different strengths of MRCB and IJM Land.

At present, MRCB's property development activities are mostly in the commercial sector and concentrated in the Klang Valley with its flagship project, KL Sentral, commanding a gross development value of over RM12bil.

IJM Land's strength is in its township and residential developments in the Klang Valley, Penang, Johor, Negri Sembilan, Sabah and Sarawak.

OSK Research said the RM2.30 offer price for MRCB was somewhat fair but not quite attractive due to the small premium and upside from its last closing price. It said the offer price only represented a 7% and 12.2% upside from the last closing price and OSK Research's previous fair value respectively.

For IJM Land, Hwang-DBS Vickers Research said at RM3.65 per share, the deal appeared attractive valuing IJM Land at 2.4 times net tangible asset.

It said this was an attractive price to migrate to a new company that would have an estimated market cap of RM7.2bil, 9,023 acres of land bank, RM3bil asset size and RM2bil revenue.

While details of IJM Corp Bhd's stake in the new company are sketchy, Hwang-DBS understood it would be substantial to enable it to consolidate earnings.

It said IJM Corp would convert the RM400mil nominal value of IJM Land redeemable convertible unsecured loan stocks (RCULS) into 229.9 million new shares of IJM Land at RM1.74 per share, raising its stake to 69% from 63% (before conversion of warrants).

Assuming IJM Corp ends up with a 41% stake in the new company based on the current offer prices and conversion of RCULS and warrants, this will work out to RM3.6bil versus its current 63% stake in IJM Land of RM2.1bil, it said.

IJM Land, IJM Corp and MRCB have a common shareholder, the EPF, which holds a 7.8%, 15.6% and 42% stake in the three companies respectively.

By The Star

UAE property developer files for bankruptcy

DUBAI: Al Murjan Real Estate, developer of a US$3 billion (US$1 = RM3.13) housing project in the United Arab Emirates, has filed for bankruptcy after running into financial difficulties, the Financial Times reported yesterday.

The company filed for insolvency in the emirate of Sharjah and two liquidators have been appointed, the FT reported, citing documents it had obtained, and cited lawyers saying that it was the first court-mandated bankruptcy of a distressed property project in the emirates.

Property buyers would likely find it difficult to recover downpayments they made on homes in the 8,000 home White Bay development, which Al Murjan had started to build in another emirate, Umm al-Quwain, the newspaper said.

As property prices plummeted some 60 per cent since peaking in 2008, more than half of buyers had not maintained payments, the FT reported.

By Reuters

Wednesday, November 24, 2010

M'sian city apartment price 2nd lowest in region

KUALA LUMPUR: The average price of city apartments in Malaysia is the second lowest compared with other countries in the region.

In a statement here yesterday, Global Property Guide (GPG) said according to its research, only Indonesia offered city apartments that were priced lower than those in Malaysia.

In comparison, the average price of city apartments in Singapore is almost eight times more than in Malaysia, beating even Australian prices, which are almost five times higher than Malaysian city apartments.

Other countries surveyed included the Philippines, Cambodia and Thailand, where high-rise residential properties in the city cost more than Malaysia, it said.

The statement said GPG has developed the world's only global rental yields database to support a fundamental investor perspective and developed the world's first global transactions costs database, said GPG founder/publisher Matthew Montagu-Pollock.

International property buying is here big time. Yet people often don't get the information they need, he said.

Montagu-Pollock will be here to address an international property seminar entitled Property Market Outlook' organised by Iskandar Associates from Nov 29-31.

He will be sharing his views with participants on the property market outlook for Asia in 2011.

By Bernama

EPF looks at expanding property investment

KUALA LUMPUR: The Employees Provident Fund (EPF) will evaluate whether to raise its investment in properties, said deputy chief executive officer (investment) Shahril Ridza Ridzuan.


Shahril Ridza Ridzuan

We will look at it from time to time whether the number that we have invested is the right asset allocation at that point of time, he said on the sidelines of Bursa Malaysia's Business Sustainability Programme yesterday.

Currently, the pension fund has less then 2% of its total accumulated funds invested in properties. However, it has a strategic asset allocation target of 5% for properties.

It (the percentage) will grow over time. As for the timeframe, it depends on the opportunities that arise, Shahril said, adding that it was hard to put a timeframe to the target.

In August, the EPF announced that it would invest 1bil (RM4.88bil) in properties in the United Kingdom.

Meanwhile, Shahril said EPF would wait for the outcome of PLUS Expressway Bhd's shareholders meeting in December before deciding on its next course of action in relation to the proposed acquisition of PLUS' assets and liabilities.

He said it also needed to obtain approval from bondholders and the Government. We have to discuss with the Government on the concession agreement, because any changes will require its approval on the concession as well, he said on EPF's next course of action once it obtained the shareholders' approval.

PLUS has accepted the revised joint offer from EPF and UEM Group Bhd to take over the company's assets and liabilities for RM23bil.

The proposed acquisition involves a cash payout of RM11bil to minority shareholders and RM12bil of the amount owing to Khazanah Nasional Bhd, UEM and EPF.

By The Star

Mah Sing to unveil new home project valued at RM800mil

GEORGE TOWN: Mah Sing Group Bhd will unveil its RM800mil residential project on a 61-acre site in Batu Ferringhi in the first quarter of 2011.


Tan Sri Leong Hoy Kum ... ‘Penang is an important market for us and we want to create the same kind of excitement there that we have achieved in the Klang Valley.’

Group managing director and chief executive Tan Sri Leong Hoy Kum said the project to be known as Ferringhi Residence@Penang was designed to be a gated and guarded project, comprising landed properties such as semi-detached, bungalow homes and condominiums.

The semi-detached units, with built-up of 3,000 sq ft, is priced from RM1.4mil onwards, while the bungalow homes, with built-up of 4,200 sq ft, is priced from RM2.2mil.

There will also be condominiums with built-up areas of between 850 sq ft and 1,800 sq ft, priced tentatively from RM480 psf.

Most phases would enjoy commanding views of the sea, he said.

Leong added that the semi-detached homes and bungalows would have their own separate clubhouse facilities.

The condominium will have a facilities deck that will house amenities such as a swimming pool, gym and various other facilities, he added.

Leong said Batu Ferringhi, a renowned tourist belt on the island, was sought after by homeowners and investors as it was located away from the city's hustle and bustle.

Our superlink homes in Penang such as Residence@Southbay are about 90% sold and are expected to be handed over to purchasers by the first quarter of 2011. Penang is an important market for us and we want to create the same kind of excitement there that we have achieved in the Klang Valley, he said.

Mah Sing's wholly-owned subsidiary Uptrend Housing Development Sdn Bhd yesterday acquired the 61-acre freehold site in Batu Ferringhi for RM157.3mil cash or about RM59.17 psf.

The land has been converted for residential development and the group has received approval from the local authorities for the development plans of the landed properties of Ferringhi Residence@Penang, he said.

By The Star

Mah Sing unit buys 24ha land in Batu Ferringhi

UPTREND Housing Development Sdn Bhd, a wholly-owned unit of Mah Sing Group Bhd, has acquired 24.41 hectares of freehold land in Batu Ferringhi, Penang, for RM157.3 million cash.

In a statement yesterday, Mah Sing said the land will be developed into a resort-style project, named Ferringhi Residence@Penang, with an estimated gross development value of RM800 million.

The company has paid RM17.3 million, representing 11 per cent, of the total consideration upon signing of the sales and purchase agreement (SPA).

"The balance will be paid within five months from the SPA date subject to conditions precedent, with an automatic extension of a month subject to 4 per cent interest per annum," it said.
Mah Sing's group managing director-cum-group chief executive Tan Sri Leong Hoy Kum said the group is confident of the resort-style development plan as it already has four projects in Penang, including Icon Residence and Southbay Penang mixed development.

The company said the land has already been converted for residential development and development plan procured for landed development.

"The main access road is ready and external infrastructure substantially completed," it said.

By Bernama

Tough revamp calls for Sime


Sime Darby Bhd, which is expected to snap its money losing streak in its first quarter results, must stick to its plantation and property businessess but it will have to review the remaining four activities and other smaller units.

The group, which has posted losses for two straight quarters due to provisions, also runs hospitals, distributes cars and heavy equipment like excavators and fabricates oil rigs, among others, under its energy and utilities division.

Sime Darby's acting president and group chief executive officer Datuk Mohd Bakke Salleh said last week that there is a plan to sell some of its assets to better manage the group.

He did not say which divisions can be sold but added that the plan will be presented to the board next year. Sime Darby is also set to announce its first quarter results tomorrow.

Analysts said having many businesses may not necessarily be a good thing due to small margins, little impact to the bottom line and intense competition.
An analyst with RHB Institute said the automotive business as an example is without a doubt a good revenue generator but margins are thin and competition stiff.

"The automotive business is too widespread and business strategies change all the time to suit the market's supply and demand situation.

"To me, what matters most is the long-term bottom line and Sime should just focus on its two core business which are plantations and property," the analyst added.

CIMB Investment Bank Bhd's senior regional analyst Ivy Ng said Sime Darby could sell its non-core business like hypermarket operator Tesco, tyre business or hotel business (Sime has a stake in PNB Darby Park hotel).

A CLSA analyst who declined to be named said Sime Darby could even sell its oil and gas division to potential buyers like Malaysia Marine and Heavy Engineering Bhd.

"However, it might not happen because it just bought Ramunia's fabrication yard, indicating it wants to stay in the business. What is important now is that Sime Darby must seriously look at future tenders and question whether it can really carry out the job or not. Otherwise, it will run into another cost overrun."

Another analyst said the healthcare business is also a good business because it is recession-proof with lucrative future potential.

Meanwhile, Sime Darby is due to report positive numbers for its first quarter due to current high crude palm oil (CPO) prices.

OSK Investment Bank analyst Alvin Tai said the results will be good as CPO prices and fresh fruit bunch production are typically good in the months of August, September and October each year.

An analyst at AmResearch said earnings will be better due to good CPO prices as well as the absence of any major provisions.

CIMB's Ng said earnings should be positive and she expects profit to account for around 20-22 per cent of consensus earnings of RM3.1 billion in fiscal 2011.

Sime Darby made a net profit of RM684.6 million on the back of a RM7.7 billion revenue in its first quarter ended September 30 2009.

By Business Times

Plan to group YTL property firms under YTL Land

YTL Land & Development Bhd plans to buy property firms that own prime land in Malaysia and Singapore for RM476 million from its parent and related companies.

It will issue some RM253 million of 10-year irredeemable convertible unsecured loan stock to parent YTL Corp Bhd as payment for the purchases and to settle the firms' outstanding inter-company balances.

The rest will be settled in cash, YTL Land said in a filing to Bursa Malaysia yesterday.

The plan to house the group's property development assets under YTL Land allows the company to acquire key assets and ongoing property development in strategic locations in Malaysia and Singapore, it added.
YTL Land will have access to a proposed development in Brickfields as well as land in Jalan Bukit Bintang and Jalan Stonor in Kuala Lumpur, and in Genting Highlands, Pahang.

It will also have access to development land in Singapore's Sentosa Cove and Orchard Boulevard.

YTL Land hopes to complete the purchases by the first half of next year.

Upon completion, the company's capital structure and asset base will be enlarged and it will rank as one of the country's leading property development companies with a regional presence.

"This will also enhance its earnings potential and competitiveness in property development, allowing it better access to the financial markets," it said.

The plan needs the approval of YTL Land's and YTL Corp's shareholders, among others.

Given that these are related party deals, the company has appointed PM Securities as the independent adviser to non-interested directors and shareholders.

Maybank Investment Bank is the principal adviser for the deals.

By Business Times

Bina Puri to build office lots in Jalan Pasar

Bina Puri Holdings Bhd today signed an agreement with the Selangor and Federal Territory Chha Yong Fay Choon Kuan to invest in the construction of two shop office blocks in Jalan Pasar, here.

The development of 24 units of 4-storey shop offices and one unit of 3-storey office on a two-acre (0.8 hectare) site would cost RM16 million.

"We are very pleased to have the opportunity to work with the association, which is a reputable association representing the Chinese Hakka clan in the Klang Valley.

"We are very optimistic that the development will be well received as it is strategically located at Jalan Pasar, which is a well known commercial hub amongst the Chinese community," Bina Puri Group Managing Director Tan Sri Tee Hock Seng said at the signing ceremony.

The agreement was signed between Bina Puri's subsidiary, Bina Puri Properties Sdn Bhd, and the association which owns the land.
Development is expected to commence in the first quarter of next year and completed within 15 months.

"Upon completion, this investment will contribute positively to our earnings stream.

"Moving forward, we are committed to further maximise our shareholders value and continue to explore new business opportunities which provide us with recurring income," Tee said.

According to the company, the investment will guarantee a return of RM40.6 million in 14 years derived from rental income of the development.

By Bernama

YTL Corp plans revamp of property division

PETALING JAYA: Conglomerate YTL Corp Bhd plans to house all its property development assets and projects under its property development arm YTL Land & Development Bhd (YTL Land), as it undertakes several disposal deals and settlement of outstanding intercompany balances valued at RM476.05mil.

YTL Corp told Bursa Malaysia yesterday that it, along three other wholly owned subsidiaries, entered into some 10 agreements and settlement of outstanding intercompany balances with YTL Land, a 60.72%-owned unit of YTL Corp.

The agreements would see YTL Corp disposing of its property assets and projects in Malaysia and Singapore to YTL Land.

The disposal consideration and settlement of the outstanding intercompany balances of RM476.05mil is to be satisfied by the issuance by YTL Land of RM253.03mil nominal value of 10-year 3% stepping up to 6% irredeemable convertible unsecured loan stocks (Iculs) at 100% of nominal value of RM0.50 per Iculs and the remaining RM223.02 in cash, it said in a filing yesterday.

YTL Land would also undertake a renounceable rights issue of Iculs to raise funds to partly satisfy the cash portion. YTL Corp would subscribe in full for its entitlement under the proposed rights issue of Iculs.

The conversion price of the Iculs has not been fixed. The Iculs and the new YTL Land shares to be issued arising from the conversion of the Iculs would be listed and quoted on the Main Market of Bursa Securities.

Under the share sale agreements, YTL Corp would dispose of its 100% stakes in Arah Asas Sdn Bhd, Satria Sewira Sdn Bhd, Pinnacle Trend Sdn Bhd, Trend Acres Sdn Bhd and its entire 70% stake in Emerald Hectares Sdn Bhd to YTL Land.

Meanwhile, YTL Corp's wholly-owned units YTL Singapore Pte Ltd, Syarikat Pembenaan Yeoh Tiong Lay Sdn Bhd also entered into share sale agreements with YTL Land.

YTL Land had also entered into a land deal with YTL Land Sdn Bhd.

This is in line with the YTL Corp's ongoing strategy for its principal business arms to own and operate the relevant assets within their business spheres in order to leverage on operational and developmental efficiencies and synergies, it said.

The disposals are aimed at unlocking the value of YTL Corp's investments in its property units and projects.

YTL Corp would continue to participate in and benefit from the development, potential earnings and capital appreciation of the land owned by the disposed firms through its existing shareholding in YTL Land and its interest in the Iculs and/or the YTL Land shares arising from the conversion of the Iculs.

YTL Corp said the net cash proceeds from the proposed disposal and the settlement of outstanding intercompany balance would be utilised for general working capital purposes.

Until such time as the net cash proceeds are utilised, they will be held in interest-bearing bank deposits, money market instruments, deposits and/or other realisable short-term investments pending further evaluation of the strategic options and opportunities of YTL Corp and its subsidiaries, it said.

By The Star

InterContinental to make debut in Malaysia next year

SINGAPORE: The InterContinental hotel brand will make its entry into Malaysia on Feb 1, 2011, when it replaces the current Nikko Hotel Kuala Lumpur.

In a statement yesterday, InterContinental Hotels Group (IHG) said the 473-room Nikko Hotel in Jalan Ampang would take the name InterContinental Kuala Lumpur.

IHG Asia Australasia managing director Jan Smits said IHG was excited to bring the InterContinental brand to Kuala Lumpur.

He said the hotel market in Malaysia had the potential for long-term growth, especially in view of the country's target of 36 million tourist arrivals by 2020.

Smits said Kuala Lumpur was a key regional destination and Malaysia was one of the few South-East Asian countries that saw an increase in visitor arrivals in 2009, a trend that had continued to-date this year.

Thomas Lee, director of the hotel's owning company MTJ Development Sdn Bhd, said with the InterContinental brand, the hotel would be able to capture an even greater share of the growing number of visitors to Kuala Lumpur, one of the most visited cities in the world.

The statement said the hotel was slated to embark on a 30-month refurbishment, which would take place in three phases.

Currently, there are 170 InterContinental hotels operating globally in more than 60 countries, including 50 in Asia Pacific.

In Malaysia, IHG also operates Crowne Plaza Mutiara Kuala Lumpur, Holiday Inn Kuala Lumpur Glenmarie, Holiday Inn Resort Penang and Holiday Inn Malacca.

With the recent signing of the Holiday Inn Express in Kota Kinabalu, IHG will have all its key brands operating in Malaysia when the Holiday Inn Express debuts in the market.

By Bernama

IJM Land-MRCB deal to create RM7b merger


IJM Land Bhd and Malaysian Resources Corp Bhd (MRCB) will merge to create a RM7 billion property company that will be the country's second largest after the recently-proposed UEM Land Bhd-Sunrise Bhd union.

IJM Land and MRCB sealed an initial deal on the proposed merger yesterday.

It is still unclear who will take the lead in the merger, but based on the two companies' shareholders fund size, IJM Land looks set to be in the driver's seat.

IJM Land shareholders' funds stood at RM1.65 billion as at March 31 2010, while MRCB's was about RM697.1 million as at December 31 2009.

IJM Land chairman Datuk Krishnan Tan said both parties had initiated the merger talks.
"We have common shareholders, but it stops there," Tan said at a press conference after sealing the initial agreement in Kuala Lumpur yesterday.

According to latest filings at Bursa Malaysia, Employees Provident Fund (EPF) owns an indirect stake of 62.47 per cent in IJM Land and about 42 per cent in MRCB.

The two parties are yet to come up with a definitive agreement, but have agreed that the merger will be done through a new company, in which IJM and MRCB will exchange shares, or a combination of shares and cash.

The price for the share swap has been fixed to curb speculation on the stocks.

Shares in IJM Land and MRCB will be exchanged based on RM3.65 per share for IJM Land and RM2.30 per share for MRCB.

This represents a 19 per cent premium and 7 per cent premium respectively to IJM Land's and MRCB's last traded share price on Monday.

A definitive agreement is expected to be sealed by December 14 this year, company executives said.

The merged entity will have total assets of RM3 billion and 3,600ha of landbank.

"With the significant increase in size, the merged group will be able to further strengthen its market leadership in the commercial and residential segments of the property market and compete more effectively in both local and international markets," MRCB chief executive officer Mohamed Razeek Hussain said.

The merged entity is expected to be listed on the local stock exchange by the middle of 2011.

Considering that the entity is slotted to be purely in property development, there is a possibility that MRCB would divest its interests in its other non-core businesses.

"Post-merger, there will be a rationalisation exercise... so we could divest or we could keep it (non-core businesses)," Razeek said.

MRCB's engineering and construction division, for example, owns the concessions for Duta-Ulu Kelang Expressway (Duke) and Eastern Dispersal Link Expressway (EDL) in Johor Baru.

It is also involved in several construction projects such as the construction of the traffic dispersal linkage at Jalan Tun Sambanthan for the development of Kuala Lumpur Sentral.

By Business Times

IJM Land to merge with MRCB in share-swap deal


From left: MRCB CFO Chong Chin Ann, CEO Mohamed Razeek Hussain, IJM Land MD Datuk Soam Heng Choon and chairman Datuk Krishnan Tan at the MoU signing on Tuesday.

KUALA LUMPUR: IJM Land Bhd and Malaysian Resources Corp Bhd (MRCB) plan to merge via a share swap in a newly incorporated company that is slated to emerge as the nation's second-largest property developer.

Yesterday the two companies signed a memorandum of understanding (MoU) and planned to come up with a definite agreement within three weeks.

The merger will involve a share-swap whereby the shares of IJM Land and MRCB will be exchanged for shares in the new company.

The exchange price per IJM Land share is RM3.65 and RM2.30 per MRCB share. This will translate into a premium of 27.5% and 10.2% for IJM Land and MRCB respectively to the five-day volume weighted average market price.

Post merger, IJM Land and MRCB plan not to maintain their listing status and the new company will take over their listing status by June 2011. IJM Land's market capitalisation is currently at RM3.4bil while MRCB's is about RM3bil.

MRCB CEO Mohamed Razeek Hussain said the MoU was only the first step of the merger where they would reveal further details of the agreement, such as shareholding structure and share swap ratio for the merger, in three weeks' time.

But because of rife speculation of the merger in the media, we think it will be fair to announce that both companies are in discussion and have signed an MoU pursuant to the merger. We are not ready to give the plethora of arrangement just as yet, he said after the MoU signing yesterday.

Meanwhile, IJM Land chairman Datuk Krishnan Tan said the two companies complement each other via the merger.

It's a merger between businesses, people and branding to take both companies to the next level. It's a good marriage, he said.

MRCB specialises in high-rise development office and condominiums while IJM Land projects are slanted towards mass township of mixed developments.

According to a presentation revealing some preliminary details of the merger, the new company is anticipated to be a mega-size property developer with implied market valuation of RM7bil, combined annual revenue of RM2bil and net asset of RM3bil, landbank in excess of 9,000 acres and increase in geographical presence.

AmResearch said the merger between MRCB and IJM Land made sense.

IJM Land could leverage on MRCB's advantage in Sungai Buloh land. MRCB has been assisting the EPF in drawing up the masterplan for the redevelopment of the RRI (Rubber Research Institute) land (in Sungai Buloh).

The research house added that IJM Land would bring expertise and a strong track record to the partnership as MRCB lacked experience in township development.

Separately, OSK Research said the merger would boost synergy and economies of scale. We believe the combined entity will stand a strong chance of being appointed the master developer of the prized piece of federal land at RRI.

However, Krishnan said the purpose of the merger was beyond any specific project and was more towards complementing each other and to be more competitive.

MRCB's largest shareholder is the EPF while IJM Land is a unit of IJM Corp Bhd, a construction and plantation group.

On Nov 4, UEM Land Holdings Bhd made a RM1.4bil takeover offer for Sunrise Bhd that would make it the largest developer of the country.

IJM Land, in its filing to Bursa Malaysia, said its net profit fell by 19.4% to RM30mil for its second quarter ended Sept 30 from a year ago. Revenue for the quarter under review also fell by 30% to RM212.9mil.

The decrease in both revenue and net profit for the quarter was due to strong take-up rate achieved in the preceding quarter for Lot 28 in Penang and sale of units (Platino and Summer Place in Penang) previously reserved for bumiputra being offered to the public.

However, cumulatively, for first six months of the current financial year, IJM Land saw its net profit surged by 30.8% year-on-year on the back of RM577.9mil of revenue.

By The Star

Tan to quit as CEO, MD of IJM Corp Dec 31

IJM Corp Bhd's Datuk Krishnan Tan will step down as chief executive officer (CEO) and managing director (MD) of the group, effective December 31 2010.

Datuk Teh Kean Ming will instead be promoted as the new CEO and MD, IJM Corp said in a filing to Bursa Malaysia yesterday.

Tan, however, will stay on as executive deputy chairman from January 1 next year.

IJM Corp also announced that Tan Gim Foo will be the new deputy CEO and deputy MD of the group effective January 1 next year.

By Business Times

SunCity, Sunway to combine? Analysts see a current trend of M&As

PETALING JAYA: Market observers are speculating that a marriage of sorts is on the cards for Sunway City Bhd (SunCity) and Sunway Holdings Bhd, after both companies had their shares suspended from trading for two days from yesterday, pending a material announcement on a corporate exercise.

According to several analysts polled by StarBiz, the potential marriage between the sister companies would most likely be consummated via a share-swap, non-cash arrangement. The pricing for the potential deal, nevertheless, remained a question.

SunCity's last traded price was RM4.49 per share, while that of Sunway was RM2.25.

A merger between SunCity and Sunway was seen likely, as such an exercise would create synergies for the companies' property businesses. For instance, SunCity's would then be able to draw on Sunway's construction, building materials, and trading operations, resulting in meaningful cost savings for the group.

The potential merger would also create a larger entity, with enhanced liquidity for the group's accelerated business growth.

According to Maybank Investment Bank Bhd's property analyst, Wong Wei Sum, the potential merger would likely result in a combined market value of RM3.46bil for the enlarged group. On top of that, the exercise would also result in the enlarged group having a combined land bank totalling 2,642 acres and a gross development value of projects worth a total of RM25bil.

Analysts were non-committal, though, on which of the two entities would emerge as the holding company from the potential deal, but they were pretty sure that no third-party would come into the picture.

The potential merger between SunCity and Sunway seemed to coincide with the recent flurry of mergers and acquisitions (M&As), involving several major players in the local property and construction industry.

According to analysts, a consolidation trend was seen emerging in the industry as players attempt to enlarge their market capitalisation to boost their capacity, while minimising competition, to bid for larger projects be it in the local market (particularly those under the 10th Malaysia Plan) or overseas.

For instance, IJM Land Bhd and Malaysian Resources Corp Bhd (MRCB) yesterday signed a memorandum of understanding to merge in an exercise seen by many as a move to leverage on each other's strengths, while boosting their chances of being appointed as the main developer of the prized Rubber Research Institute land in Sungai Buloh.

With MRCB being majority-owned by the Employees Provident Fund, the chances of winning government-rolled out projects are high indeed. Other prized projects to bid for include the extension of the Klang Valley's light rail transit system, new buildings in Putrajaya as well as the cleaning up of the Klang river.

Less than a month ago, UEM Land Holdings Bhd and Sunrise Bhd had already embarked on an M&A route, with the former proposing to take over the latter to boost its land bank and diversify its product offerings into high-rise residential and integrated commercial development.

The proposed acquisition would also enable UEM Land to capitalise on Sunrise's strong brand and expertise to enhance its market position in the industry and enhance its appeal to high-end local and foreign buyers.

By The Star

Sunway and SunCity shares suspended on merger talks

SHARES of Sunway Holdings Bhd and Sunway City Bhd (SunCity) have been suspended from trading amid speculation that they may be merged.

The construction and property firms, controlled by Tan Sri Jeffrey Cheah, asked for their shares to be suspended from yesterday until 5pm today, pending a material announcement.

They will be merged into a new company via an exchange of shares and cash, Dow Jones newswires reported yesterday, citing an unnamed source.

The new company will continue to be controlled by Cheah, it added.
If a merger were to happen, it would be the third property merger to be announced this month.

Sunway Holdings was last traded at RM2.25 and SunCity, at RM4.49.

By Business Times

Tuesday, November 23, 2010

I-Berhad in talks to revive mall project


PROPERTY developer I-Berhad is currently in talks with relevant parties to revive its shopping mall project in Shah Alam, Selangor, said its top executive.

The i-City mall project was halted last year due to the global financial crisis. It was initially reported that the mall will span about one million square feet, almost equivalent to Mid Valley Megamall in Kuala Lumpur.

"We are currently in discussion stage and we will announce the plans when appropriate," chief executive officer Eu Hong Chew said but declined to elaborate further.

Earlier reports speculated that Singapore's CapitaLand Ltd would be I-Berhad's foreign partner to help develop the mall.
There are currently about four main shopping malls in Shah Alam - Shah Alam City Centre, Plaza Masalam, Kompleks PKNS and Alam Sentral mall.

i-City is an estimated RM2 billion project on 29ha that boasts a broadband speed of 20Mbps with fibre optics network and a back-up power supply.

The first phase, comprising 6.1ha with 500,000 sq ft of office space, is now 60 per cent occupied.

Yesterday, I-Berhad launched a 10,000 sq ft outdoor convention area known as i-Walk. The convention arena is an indoor-type air conditioned environment that is designed with 1,000 programmable LED lights making it an ideal avenue for corporate events or private functions.

The i-Walk can accommodate up to 33,000 people at one time and is expected to be ready by the end of December. The project is part of its phase two development covering 3.64ha with a gross development value of over RM150 million.

Also present at the event was Minister of Housing and Local Government Datuk Wira Chor Chee Heung.

In his speech, Chor praised i-Berhad for providing township services such as landscaping, security, rubbish collection and traffic management within its i-City development.

"This is in line with ministry's mission of having human settlements with integral facilities, social and recreational services," he said.

By Business Times

IJM Land and MRCB shares suspended, they are to announce potential corporate exercise today


An artist’s impression of IJM Land’s RM4.3bil The Light Waterfront phase two project.

PETALING JAYA: Market talk of a potential merger, or takeover, involving IJM Land Bhd and Malaysian Resources Corp Bhd (MRCB) has intensified with the suspension of the shares of IJM Land, its parent IJM Corp Bhd and MRCB since 9am yesterday pending a material announcement on a potential corporate exercise.

The companies are expected to announce details of the corporate exercise later today.

An analyst with a local research house said there was room for consolidation in the local property sector to make way for more competitive and bigger entities in the likes of their better capitalised counterparts in Singapore.

There are various possibilities how the exercise will be carried out. One involves the merger of IJM Land and MRCB into a new entity and the other is via the takeover route, he told StarBiz yesterday.

He said the rationale for a merger or takeover was for both parties to leverage on each other's strengths and synergies going forward.

With the Employees Provident Fund (EPF) having close to a 42% stake in MRCB, he said there was value in MRCB due to its expected involvement or major role in the redevelopment of the Government's land in Sungai Buloh, and a possible strong uplift to the construction order book from the rollout of the 10th Malaysia Plan projects.

Another analyst said while MRCB had proven itself in commercial development, especially the award-winning KL Sentral development, its track record in residential development has not been significant.

IJM Land, with its good track record in residential projects and township development, will be a good match for MRCB as its expertise will be most valuable to the enlarged group's expanded landbank, he said.

Strong brand

The property development arm of IJM Corp has the advantage of a strong brand and is a trusted developer of quality niche properties and new townships.

It is well regarded for its township building expertise as well as expertise in building medium to high-end residences and commercial projects.

Among its flagship projects are The Light Waterfront project in Penang as well as the Seremban 2 and Shah Alam 2 townships.

The analyst said MRCB's advantage of being one of the frontrunners for the redevelopment of the Sungei Buloh land could be the main impetus for the coming together of both companies.

We believe MRCB has been helping the EPF in drawing up the masterplan for the 3,300 acres in Sungei Buloh. However, details on the plot ratio, size of initial development, and other issues are not available as yet. But we understand that the Government is expected to announce the award and details by the first quarter of 2011, he added.

The Government and the EPF will form a joint venture to promote the development of the Sungei Buloh land into a new hub for the Klang Valley. The land is believed to have a gross development value (GDV) of RM10bil.

KL Sentral's development is also progressing well with over RM4bil of GDV having been completed. MRCB, together with its partners, are undertaking RM4.3bil worth of development, to be completed mostly in 2012.

Most of the development centres on Lot G, comprising two office towers, one retail mall and a hotel, with a gross floor area of about three million sq ft. The retail mall, to be called Nu Sentral Mall, will be kept for rental income. Two more properties KL Sentral Park and 348 Sentral (office and apartments) would also be injected into its property investment units for rental income. We understand that about 53% of tenants have been secured for KL Sentral Park and Shell would be taking up office space at 348 Sentral, the analyst said.

He said there would be about RM6bil worth of GDV remaining for development in KL Sentral with construction to start mostly in 2011 and 2012.

This development would include office suites (Lot B), office towers, St Regis Hotel/Residences, and a luxury high-rise development (joint venture with CapitaLand and Quill).

The analyst said MRCB was targeting at least RM1bil of new jobs next year. Among others, it is eyeing some portion of the civil works for the RM43bil MRT project proposed by MMC Corp Bhd and Gamuda Bhd.

The group is also expecting renewals to environmental projects, including the Sungai Pahang rehabilitation project, which is valued at about RM200mil. It is also looking at RM300mil to RM400mil worth of new transmission jobs from Sabah and Sarawak, he said.

By The Star