Novotel Hydro Majestic Hotel put up for sale

Hotel operator and property developer Pulai Springs Bhd has put its two-year-old Novotel Hydro Majestic Hotel in Kuala Lumpur up for sale, sources say.

It is believed that the owners are asking an estimated RM200 million for the four-star 291-room hotel located along Jalan Kia Peng, a stone's throw from the iconic Petronas Twin Towers.

According to sources, Pulai Springs has received several offers for the hotel.

One source said that the Johor-based company had in fact identified a buyer. Pulai Springs officials could not be contacted for confirmation.

It is also unclear why it wants to sell the property. It is probably trying to cut debt. Its current liabilities, or what it needs to pay in a year, stood at RM193.6 million as at December 31 2008. In contrast, its current assets amounted to RM71.4 million.

Novotel Hydro Majestic is operated by France's Accor group.

Pulai Springs' main property is the Pulai Springs Resort in Johor. It also operates the The Pulai Desaru Beach Resort.

In the financial year ended December 31 2008, Pulai Springs' net loss widened to RM8.36 million on revenue of RM80.81 million.

Its resort and hotel division recorded net loss of RM4.69 million on revenue of RM67.36 million.

According to its 2007 annual report, Novotel Hydro Majestic contributed RM20.7 million in revenue.

Penang's Mah family, which runs Hydro Hotels Sdn Bhd, bought the abandoned hotel building and completed it.

It was sold to Pulai Springs for RM10 million in 2006. The price took into account the fair market value of the land and hotel of RM130 million and the total development cost of the hotel of RM120 million.

Pulai Springs was listed on the main board in December 2002.

By Business Times

Selangor Prop to clear residential stocks

SELANGOR Properties Bhd (SPB) wants to clear the residential property stocks in its current projects before launching new development phases as sales have plunged almost 50 per cent.

"People are more cautious. Average sales used to be 20 to 30 units a month but now it has been reduced by 50 per cent despite attractive interest rates," financial controller Lee Boon Kian said after SPB's annual general meeting in Kuala Lumpur today.

SPB has two ongoing projects at Bukit Permata in Gombak and Selayang Mulia, with both developments comprising about 40 hectares each.

The Bukit Permata development is 75 per cent completed while Selayang Mulia is half completed.

Lee said out of the residential 560 units in Bukit Permata, 270 units were unsold.

"There are plans to launch the next phase of development in Bukit Permata and Selayang Mulia and another project in Ulu Langat but these are all in the planning stage," he said.

According to Lee, the new phases and project may be launched late this year or early 2010.

He said the Ulu Langat project will be a mixed property development.

For the financial year ended Oct 31, 2008, the group recorded a net profit and minority interests of RM118.6 million based on a turnover of RM210.6 million.

On the outlook, Lee said: "We can't match that kind of profit (for the current financial year) as part of last year's profit came from foreign exchange gains."

Besides property development, SPB is also involved in the education business.

On talks that the company will be privatised, SPB corporate affairs manager Chong Koon San said there was no such plan.
Asked if SPB planned to acquire more land, Lee said it was looking for such opportunities in the Klang Valley "but prices have not come down that much yet."

By Bernama

Nilai's four-star hotel nears completion

PK Resources Bhd is investing RM58 million to build a four-star hotel adjacent to the Nilai Springs Golf & Country Club in Putra Nilai, Nilai Springs Resort Sdn Bhd general manager G.K. How said today.

Construction of the nine-storey 183-room Nilai Springs Resort Hotel is progressing smoothly since last year and is nearing completion.

"According to our plan, we are to do the soft launch on June 8. The hotel is slated to start full commercial operations in September," he said.

How said the hotel would have the "Azuma Fusion Restaurant" serving a variety of Japanese, Korean and Chinese food and western food by "Springs Cafe".

The stall-styled "Golfers' Terrace" will serve local cuisines. There are also "Fairway Lounge" and "Splash Station".

The hotel also has facilities for golfing on a 27-hole golf course, badminton, tennis and squash courts, swimming pool, gymnasium, jaccuzi, sauna, spa and a health centre and children water play park.

"Other facilities are a ballroom that can accommodate 550 people at one time and 12 meeting rooms. We also have facilities for team-building such as wall climbing, rappelling and flying fox, he said.

How said the accommodation package at the hotel was open to all including flight transit passangers, cabin crew, golfers, foreign tourists, businessmen and Formula One riders and spectators during the Petronas Malaysia Grand Prix F1 championship at the Sepang International Circuit.

How said under the current uncertain global economic climate, Nilai Springs Resort, a wholly-owned subsidiary of PK Resources, was optimistic the hotel investment was a viable and profitable venture.

"I believe after the challenges and pressures posed by the global economic turmoil end in two years, we expect a good occupancy of 75 to 80 per cent.

"For the next two years, our occupancy projection is 55 and 60 per cent. We are confident of achieving this target as the hotel has only 183 rooms.

"In fact, we have already received bookings from several F1 racing teams coming for the F1 championship at the Sepang International Circuit next year.

The optimism to woo hotel guests stems from the hotel's strategic location proximity to the KL International Airport in Sepang, Low-Cost Carrier Terminal, Sepang International Circuit, Cyberjaya Intelligent City and Putrajaya federal government administration centre.

PK Resources (formerly known as (Peladang Kimia Berhad), a property developer, is currently focusing on Putra Nilai (new name for Bandar Baru Nilai) township via its wholly-owned subsidiary BBN Development Sdn Bhd.

Putra Nilai is one of the largest townships within the Multimedia Super Corridor and strategically located in the vicinity of the Kuala Lumpur International Airport, Putrajaya and Cyberjaya.

Spanning over 6,200 acres of freehold land, Putra Nilai is today a diverse, modern township with a multitude of residential, commercial, recreational, educational and administrative amenities and a well landscaped environment.

By Bernama

Malton wins RM175m mall job

MALTON Bhd through its wholly-owned subsidiary, Domain Resources Sdn Bhd, has been awarded a RM175.0 million contract to build a seven-storey shopping mall in Petaling Jaya, Selangor.

In a filing to Bursa Malaysia today, the company said the project will start in August this year.

It is scheduled for completion in November 2011.

The project is expected to contribute positively to the earnings and net assets of the group.

By Bernama

Still some shine in Sunway City

ECM Libra Research has reaffirmed its buy call on Sunway City Bhd albeit with a lower target price of RM2.96 (RM3.60 previously) on expectation that the property sector would be finding a floor soon from which steady recovery can be built upon.

Like most property developers, Sunway City has seen demand for its properties take a tumble amid fast deteriorating economic conditions.

However, ECM expected work progress to pick up in the months ahead following the decline in building materials prices. Sunway City’s property development earnings in the near term will be underpinned by strong unbilled sales of RM869 million which is more than 1.2 times property development revenue in FY08.

The research house added that recurring income from its property investment division was also looking strong having more than doubled since the completion of the expansion of Sunway Pyramid and opening of Sunway Carnival in late 2007.

“We expect 49% of its Ebitda (earnings before interest, tax, depreciation and amortisation) in FY09 to come from property investment. Its jewel in the crown is Sunway Pyramid shopping mall which is contributing over 70% of Ebitda from property investment,” it noted.

ECM also said that it was only a matter of time before Sunway City becomes the largest Malaysian real estate investment trust (M-REIT).

“While the company’s plan to list its vast investment properties into a REIT last year was derailed by the global economic downturn, we remain optimistic that this will happen once confidence returns to the capital market.

“Based on our estimate by using a cap rate of 7%, the size of its REIT could be around RM3.1 billion which will put Sunway City as sponsor of the largest REIT in Malaysia,” it said, noting when that happens, intrinsic values of its properties would be unlocked, adding 45 sen per share.

Considering its resilient property investment earnings and potential value enhancement upon listing of its REIT, ECM said Sunway City was significantly undervalued, trading at a valuation of only 0.5 times its book value — equivalent to the valuation last seen during the minor property downturn in 2001.

“Furthermore, Sunway City is a good high beta play on recovery of the property sector. Despite its resilient earnings from property investment, its beta of 1.37 is the highest among property investment vehicles such as KLCC Property, IGB, KrisAssets as well as REITs,” said the research house.

Despite having gained 37.2% over the last one month, ECM believed Sunway City still has further upside potential due to improving investor sentiment of late.

“Further upside will be supported by our revised net asset value (RNAV) estimate of RM5.48 as well as positive earnings growth delivery and announcement of REIT listing,” it added.

Sunway City climbed 13 sen to close at RM2.19 yesterday.

By The EDGE Malaysia

Rehda: Lifting of 30% bumiputra equity will encourage competition

KUALA LUMPUR: The Real Estate and Housing Developers’ Association Malaysia yesterday welcomed the lifting of 30% bumiputra equity condition on 27 services sub-sectors.

Its president Datuk Ng Seing Liong said the liberalisation would have a positive impact and attract more foreign investments.

“The liberalisation will not only promote Malaysia as a hub for investors to carry out business but also encourage a healthy and competitive environment among local entrepreneurs, especially during this softening global economy,” he said in a statement.

Ng said the move would also help grow businesses and, in turn, boost demand for real estate.

He hoped that the housing and property development sector would also be liberalised in the future.

Meanwhile, the Malaysian Investors Association also welcomed the move.

President Datuk Dr P.H.S. Lim said many foreign multinational companies (MNCs) preferred to have 100% equity ownership in order to have a free hand in their corporate management.

He said MNCs also found it hard to attract good partners.

Lim said Malaysia needed further liberalisation of investments following the globalisation of the economy.

He said that in the mid-1980s, the country was in pole position when it came to foreign direct investments because at that time, China and other Asean countries had poor infrastructure and were not competitive.

“Today, these countries have advanced and are competitive,” he said.

By Bernama

MBSB plans to finance RM300mil property project

PETALING JAYA: Malaysia Building Society Bhd (MBSB) is looking to finance a property project worth RM300mil under its newly launched MBSB Musharakah Joint Venture Programme.

“We are talking with a company, with the involvement of government-linked companies,” chief executive officer Ahmad Zaini Othman said after the soft launch of the programme here yesterday.

MBSB, a 52.9% subsidiary of the Employees Provident Fund, specialises in personal financing, mortgage and corporate businesses, as well as treasury and structured funds.

Ahmad Zaini said the latest programme was in line with MBSB’s new direction to reposition itself in the Islamic financial market.

Considered the first of its kind in Malaysia, the programme offered partnership in property development, contract financing and object/asset financing, especially to developers, land owners and contractors, he said.

According to Ahmad Zaini, the programme offers attractive margin of financing and assured project completion.

“It will enable MBSB to undertake corporate financing activities on a joint-venture basis, using the underlying Islamic financing contract of musharakah,” he said.

He said for MBSB to gain a stronger footing in musharakah, the company was now in talks with a local Islamic bank to form a partnership.

“We hope for the partnership to take shape in May or June, which will provide us with an avenue for greater resources,” he said.

By Bernama

MBSB set to build RM300m property via musharakah

MALAYSIA Building Society Bhd (MBSB), a finance company, said it is poised to partner a government-linked developer to build a RM300 million property under its latest Islamic finance product.

It launched the musharakah programme yesterday, basically a joint venture concept where the lender and partner work on a venture and share the profits and losses, unlike conventional banking.

This is the most preferred and globally accepted financing structure, especially in the Middle East. However, it has yet to make it big in Malaysia.

"This is an untapped market and we are excited of the prospects for our programme," MBSB chief executive officer (CEO) Ahmad Zaini Othman told a briefing after the launch in Petaling Jaya yesterday.
Last year, musharakah made up only 3 per cent of the total approved Islamic financing of RM30 billion in Malaysia.

"Ours is a business model, not a lending model. We have an investment committee and not a credit committee like banks do," he said.

Ahmad Zaini, who was formerly AmIslamic Bank CEO, said since MBSB is not under Bank Negara Malaysia, there was no need for the central bank's approval for its musharakah programme.

MBSB is exempted from the banking law and it reports to the Finance Ministry and not Bank Negara.

Ahmad Zaini said the approval process for this financing will be rigorous as MBSB only wants genuine partners.

"We have to do this strategically and be a responsible partner."

MBSB is 67 per cent owned by the Employees Provident Fund and about 15 per cent by Permodalan Nasional Bhd.

By Business Times (by Roziana Hamsawi)

Tanjung Manis Halal Park rakes in RM9b

The Tanjung Manis Halal Park, located on the west coast of Sarawak, has attracted RM9 billion in investments since its launch in February this year.

The Halal Industry Development Corporation (HDC) chief executive officer Datuk Seri Jamil Bidin, who disclosed this said, the investments comprised RM6 billion from six Taiwanese companies and the remaining by local ventures.

The companies concerned are involved in agriculture, biotechnology and food-related businesses, he told reporters after the launch of the World Halal Forum in Kuala Lumpur today.

The Tanjung Manis Halal Park is the first one-stop halal park in East Malaysia for upstream and downstream halal food and manufacturing.

By Bernama

Binaik fourth to be taken private this year

Binaik Equity Bhd, a property developer, is set to be taken private in a deal worth some RM19 million, making it the fourth company that wants its shares to be taken off Bursa Malaysia this year.

Minority shareholders will be offered 75 sen a share, 23 per cent higher than its last closing price of 61 sen on Monday.

The stock was suspended from Tuesday and will resume trading today.

Binaik's major shareholder, Yeo Brothers Sdn Bhd (YBSB), has sent a letter to the board, asking the company to consider the privatisation.
The main reason for this is the poor trading volume of its shares.

"The average daily trading volume of Binaik shares for the past three years up to April 20 was approximately 37,000, representing only 0.15 per cent of Binaik's current public shareholding spread of 25 million shares," the company said in a statement to Bursa Malaysia yesterday.

Binaik will carry out a selective capital repayment exercise for the privatisation. This means that the company will return its capital to shareholders, excluding those who will not participate, normally the major shareholders.

YBSB and its related parties, which hold a total of 74.41 per cent of Binaik, will not take part in the repayment.

The Johor-based Binaik will use internal funds, borrowings, or a loan from YBSB to fund the repayment.

The company was barely profitable last year. It made a net profit of RM41,000 compared with RM1.3 million in financial year 2007. Revenue, however, increased to RM80 million from RM72.2 million in 2007.

Binaik will have to hold a shareholder meeting to seek approval for the capital repayment. It has hired HwangDBS Investment Bank Bhd as its adviser and expects the deal to be done by the end of September.

By Business Times

Sime seeks buyer for hotel

Conglomerate Sime Darby Bhd has put up for sale its decade-old hotel in the heart of historical Malacca.

The five-star 496-room Hotel Equatorial Melaka will probably be sold for an estimated RM180 million, or roughly RM363,000 per room, sources told Business Times.

The sale is said to to be in line with Sime Darby's intention to sell non-core businesses.

Hotel Equatorial Melaka is owned by Syarikat Malacca Straits Inn Sdn Bhd, in which Sime Darby holds 55 per cent and the Malacca state government 30 per cent. The rest is held by Hotel Equatorial (M) Sdn Bhd, which is also the operator.
Sime Darby officials were unavailable for comment.

Sources close to the deal said that Zerin Properties has been appointed as the exclusive agent for the sale. Zerin Properties could not be reached for comment.

A source, who disclosed that several offers have been received for the property, said the agent was hopeful of completing the deal by the year-end.

If Sime Darby got its asking price, based on its interests, it could get as much as RM99 million from the sale.

It is believed that the hotel, with average occupancy of more than 60 per cent and average room rate of RM180 per night, made some RM37 million revenue in its last financial year.

Its earnings before interest, tax, depreciation and amortisation last year stood at around RM11 million.

Malacca, the third most visited state after Kuala Lumpur/Selangor and Penang, was proclaimed a World Heritage Site by the United Nations Educational, Scientific and Cultural Organisation (Unesco).

Last year, it welcomed 7.2 million tourists. It projects 8.4 million arrivals this year. By 2010, it hopes to attract 13 million tourists.

Hotel Equatorial Melaka, located in Bandar Hilir, is a 22-storey building with three basement floors for parking. It has seven food and beverage outlets and a ballroom seating capacity of 1,300.

The hotel is within walking distance of the A Famosa fort and the Stadthuys.

According to a Sime Darby website, its hospitality involvement includes the PNB Darby Park Executive Suites in Kuala Lumpur, Harvard Suasana Hotel in Kedah and Darby Park Executive Suites in Singapore.

By Business Times (by Vasantha Ganesan)

Property prices, rentals take dip

KUALA LUMPUR: The Valuation and Property Services Department is already seeing signs of a decline in selling prices and rental yields within the Malaysian property market in the first quarter of 2009.

Director-general Datuk Abdullah Thalith Md Thani attributed the reasons for the price and rental dip to the global economic downturn and the poor market sentiment locally.

Deputy finance minister Datuk Wira Chor Chee Heung (left) officiating the launch of the 2008 Market Report with Valuation and Property Services Department director general Datuk Abdullah Thalith Md Thani (right). Looking on in the background is Valuation and Property Services Department deputy director for valuation Abdul Hamid Abu Bakar.

“Given the choice, I want conditions to improve tomorrow. But I don’t want to speculate when it (the economy) will recover,” he said at the launch of the 2008 Property Market Report yesterday.

He said he expected both the (RM7bil and RM60bil) stimulus packages and the on-going projects under the Ninth Malaysia Plan to help cushion the effects of the global financial crisis.

He also said he was optimistic about the number of property transactions during the first three months of 2009. The local property market recorded 340,240 transactions valued at RM88.34bil in 2008. The transaction volume recorded a 9.9% increase (2007: 309,455 transactions), while value grew by 14.5% against 2007’s RM77.14bil.

The residential property sub-sector remained the most dominant sub-sector in 2008, comprising 63.7% of total volume and 46.8% of total value of transactions.

In total, 216,702 transactions worth RM41.30bil were recorded in 2008 against 199,482 transactions worth RM36.5bil in 2007. By price range, houses costing below RM200,000 continued to be the most sought after, comprising 75.1% (162,689 transactions).

The agricultural property sub-sector was the next most transacted, forming 20.3% of total transactions, followed by commercial property at 9.3%, development land (4.3%) and industrial property (2.4%).

Abdullah said the industrial property sub-sector would be the most vulnerable in 2009.

“It (the industrial sub-sector) has been affected for quite some time already and its contribution to economy is not big. But I am not so concerned about this sector because an industrial development can always be redeveloped for different sector usage,” he said.

He also said the high-end segment of the residential property sub-sector was most likely to be affected, given the current economic situation.

Deputy Finance Minister Datuk Wira Chor Chee Heung, who graced the event, expressed optimism about the local property market.

“Malaysians have a high savings rate. The stimulus package should also help to spur the local property market. In terms of demand, property in large populated cities like Kuala Lumpur and Johor Baru will also continue to sell,” he said.

By The Star (by Eugene Mahalingam)

EcoFirst rebrands education mall

PETALING JAYA: EcoFirst Consolidated Bhd aims to achieve a yield of up to 7.5% annually for its South City Plaza in seven years after the rebranding of its key property asset into an educational mall due for launch on Friday.

Tiong Kwing Hee (inset) says South City Plaza will be rebranded as Edu Mall @ South City.

Executive director Tiong Kwing Hee said the rebranding of the Edu Mall @ South City was part of the group’s restructuring exercise to give a good return for its long-term investment in the property.

“We aim to sell the property to real estate investment trusts once we achieve our targeted yield within seven years,” he told StarBiz.

Currently, about 4,000 students are receiving higher education and vocational training offered by eight institutions at the five-storey mall in Seri Kembangan, Selangor.

Among them are EcoFirst’s 27%-owned associate SEG International Bhd (SEGi), International College of Health Sciences and Summit Multimedia Education Sdn Bhd.

The group targets to increase the number of students at the mall to 6,000 by year-end and 10,000 by end of next year.

“We have allocated about 25% of the total lettable area of the mall, or 200,000 sq ft, for these educational providers, which received competitive rental rates of RM1.50 per sq ft from us,” said Tiong.

“We still have about 70,000 sq ft reserved for educational tenants.”

To enhance the value of its property, EcoFirst plans to build two blocks of 13 to 14-storey apartments which can house about 3,000 students on top of the mall to be leased to SEGi.

With a gross development value of RM75mil to RM80mil, the serviced apartments were expected to be completed within 24 months after construction starts in the fourth quarter.

“We plan to take about RM50mil in bank loans to fund the project, which would cover about 73% of the costs,” said Tiong.

“We are confident that the serviced apartments would give 6.5% to 7% returns to SEGi yearly.”

EcoFirst had last year invested about RM5mil to give the mall a facelift.

By The Star (by Shannen Wong)

Property market expected to fall slightly this year

MALAYSIA'S property market is expected to worsen this year as the global economic uncertainties deepen.

The Valuation and Property Services Department of the Finance Ministry director-general Datuk Abdullah Thalith Md Thani said the local property market will fall moderately further this year, with signs of pressure looming.

This is based on data collected by the National Property Information Centre in the first quarter of this year.

"It showed negotiated price and rental rates are heading downwards," he said at the launch of the Malaysian House Price Index and the Property Market Report 2008 by Deputy Finance Minister Datuk Chor Chee Heung in Kuala Lumpur yesterday.
Abdullah Thalith said the number of new housing projects launched in 2009 will remain as last year.

But property transactions and value are expected to drop by 5-10 per cent in the current year, unless the government's RM67 billion stimulus packages bear fruit soon.

"The effects of the stimulus packages will have to kick in soon to cushion off the effects in the global economic crisis and for the property market to recover," he added.

Last year, the property market recorded 340,240 transactions with a total worth of RM88.34 billion, indicating a growth of 10 per cent and 14.5 per cent respectively.

The residential segment was the most dominant sub-sector, accounting for 46.8 per cent of the transactions and 63.7 per cent of total volume.

Abdullah Thalith said the industrial sub-sector will be the most pressured this year as the majority of the companies are service or export-oriented and affected by market turbulence.

A total of 8,126 transactions worth RM7.9 billion were recorded last year, which was an increase in volume by 2.6 per cent and 11.5 per cent respectively.

In line with the dismal outlook in industrial activities, the number of industrial overhangs, unsold under construction and unsold not constructed units grew by 30 per cent.

Earlier, Chor urged developers to weigh a project's viability thoroughly and innovate where possible, before embarking on new developments.

"Lower costs will enable you to offer buyers attractive packages. Make less profit now, but build your goodwill so that when the economy uplifts, you will be the property provider of their choice," he said.

Chor said there is no doubt that demand for all properties will go through a slow period. But there are no signs of a bubble development as the government is stabilising property prices.

He said based on the Property Market Report, the average price of all property sub-sectors in 2008 was on the uptrend.

By Business Times (by Sharen Kaur)

iProperty.com unveils one-stop MM2H website

PROPERTY online portal iProperty.com Malaysia has launched a one-stop website for Malaysia My Second Home Programme (MM2H) to educate and help foreigners interested in the programme.

The group has teamed up with iHome Management & Services Sdn Bhd to jointly launch the online portal in www.iproperty.com.my.

“It will serve as a link between potential participants and the agents who will educate them about the programme and assist them in the application process,” iProperty.com group executive chairman Patrick Grove said in a statement.

By Business Times

Property mart to see moderate growth in 2009

The property market looks set on the path of moderation in 2009 with prices and rentals correcting and construction activities easing slightly amid the current economic situation.

However, it is unlikely that prices and rentals will plunge in the coming years, said Valuation and Property Services Department, Ministry of Finance in its report released today.

The department said the residential sector is expected to gain from several measures under the Budget 2009.

For 2008, the property market recorded 340,240 transactions valued at RM88.34 billion, it said.
The transaction volume recorded 9.9 per cent increased from 309,455 transactions while value grew by 14.5 per cent from RM77.14 billion.

During the year, the primary market did not perform as well as the previous year as there were 48,830 new housing units offered for sale, of which only 21,725 units taken out.

In tandem with the dismal performance of the primary market, the number of residential overhang increased by 9.1 per cent to 26,029 against 23,866 units in 2007.

The report was launched by Deputy Finance Minister Datuk Wira Chor Chee Heung.

By Business Times

I&P turns bullish on sales

The property developer now expects to maintain revenue of RM750 million that it made last year, thanks to the good response to its Mad About Homes campaign

PROPERTY developer Island & Peninsular Bhd (I&P) has turned bullish on sales this year, thanks to the good response to a promotion campaign it launched in February.

It now expects to maintain revenue of RM750 million that it made for the year to December 31 2008. In March, I&P's chief told Business Times that the company was expecting revenue to fall by a third due to slower sales.

"Cautiously, we will try to maintain last year's revenue. We have a few strategies. We will be more innovative and may extend the campaign to boost sales," managing director Datuk Jamaludin Osman told Business Times in a recent interview in Kuala Lumpur.

I&P, a wholly-owned unit of state-owned fund manager Permodalan Nasional Bhd (PNB), has been getting good responses from the public since launching its Mad About Homes campaign.

In just two months, it sold 77 units of double-storey terraced houses and semi-detached homes, worth almost RM35 million. These are units within its Bandar Kinrara, Alam Impian and Alam Sari townships in Puchong, and Shah Alam and Bangi in Selangor.

I&P is also selling more bungalow lots this year.

It is releasing 15 lots for sale by way of tender, with reserve price starting from RM546 to RM572 per sq ft, at its 17.01ha Seri Beringin development in Bukit Damansara, Kuala Lumpur.

The company normally sells about five to seven lots a year.

Jamaludin is optimistic of selling all the 15 lots by the end of this year. Since 2005, the company has sold 54 bungalow lots in Seri Beringin.

I&P, which is focused on developments in the Klang Valley, is also reaching first-time buyers from outside the region.

It is collaborating with PNB to promote its products and developments. To do this, it is participating in Minggu Saham Amanah Malaysia (MSAM) 2009 in Johor Baru, Johor.

Jamaludin said I&P is taking the opportunity to participate in MSAM as it will be a good opportunity to showcase its properties.

"By participating in MSAM, people can identify PNB, not just as a unit trust conglomerate, but having companies who are reliable and giving dividends to the group. We hope to also get more exposure and recognition from Johor market and increase our database," he said.

I&P has been participating in MSAM since the first exposition in Kuala Lumpur in 2000.

By Business Times

SP Setia coy on plan to buy PNB real estate firms

PROPERTY developer SP Setia Bhd is keeping mum on its plan to acquire three real estate companies under Permodalan Nasional Bhd (PNB).

The three are Island & Peninsular Bhd, Pelangi Bhd and Petaling Garden Bhd.

"It is too early to comment. This issue is very sensitive. Whatever we do, it must add value to our business," SP Setia president and chief executive officer Tan Sri Liew Kee Sin said on the sidelines of PNB's Malaysian Unit Trust Week 2009 in Johor Baru yesterday.

Liew was commenting on a foreign news report quoting RHB Research Institute Sdn Bhd as saying that SP Setia may acquire the three companies from PNB to increase sales and gain financial backing from the government.
RHB Research said the acquisition may increase SP Setia's value.

The property units have a combined annual sales of more than RM1.31 billion, similar to SP Setia's 2008 figures.

As of January 30, PNB owned a 6.5 per cent stake in SP Setia, according to Bloomberg's data.

By Bernama

Axis-REIT posts higher Q1 revenue of RM17.3m

AXIS Real Estate Investment Trust's (Axis-REIT) revenue for the first quarter ended March 31 2009 rose to RM17.3 million from RM14.5 million in the same quarter last year.

Net income rose to RM10.4 million from RM9 million previously, Axis REIT Managers Bhd, the manager of Axis-REIT, said in a statement in Kuala Lumpur yesterday.

Axis REIT Managers' chief executive officer Steward Labrooy said the company has maintained its earnings momentum despite the current global financial crisis.

"With the implementation of a quarterly distribution policy, we are now able to reward our unitholders on a more regular basis," he said.
The policy entails at least 95 per cent of the current year-to-date distributable income for the first to third quarters and at least 99 per cent of the current year-to-date distributable income for the fourth quarter.

Labrooy said the company would continue to focus on providing steady yield accretion through enhancement of the current portfolio, prudent capital management and examining investment opportunities as long as the gearing was capped below 40 per cent.

He said the company was optimistic Axis REIT would be able to maintain its current performance for the coming quarter and the rest of the financial year ending December 31 2009 boosted by the current satisfactory performance of the trust's existing investment portfolio.

By Bernama

I-Bhd plans Islamic resource centre

I-Bhd, developer of i-City in Shah Alam, plans to build an Islamic resource centre for the creation of an Islamic financial sector in I-City.

I-Bhd said the project is slated to start at the end of next year.

"The first completed phase of i-City has Al-Rajhi Banking Group, a premier Islamic financial group, acquiring 80 per cent of its 300,000 square feet Grade A cyber office suites," I-Bhd said, adding that other global companies had also expressed interest in i-City.

"In fact, i-City has already attracted tenants, such as UK’s Logica and Singapore Unified Communications, to name a few," I-Bhd said in a statement.

The i-City development is in line with I-Bhd’s vision to build a knowledge-based economy with i-City.

By Bernama