Selangor Dredging to go big in Singapore

KUALA LUMPUR: Selangor Dredging Bhd (SDB) plans to launch more luxury condominiums in Singapore after its maiden project there, comprising 22 luxury condos at Wilkie Road, received good response and drew in sales worth RM163mil.

Teh Lip Kim ... ‘Singapore has been identified by Selangor Dredging as a place of growth.’

“We do have projects in the pipeline for Singapore,” managing director Teh Lip Kim said at the company AGM here.

“Singapore has been identified by SDB as a place of growth and there are potential development opportunities that suit our niche market.”

The former tin mining company recently acquired a piece of land in the Newton Circus area of Singapore and is in the works to build 110 luxury condos.

The project was expected to generate a revenue of RM450mil for the company, Teh said.

While there are no immediate plans to expand property development beyond Malaysia and Singapore, Teh did not rule out the idea, citing the recovery in regional propert markets.

On SDB’s controversial Damansara 21 project in Kuala Lumpur, chairman Eddy Chieng confirmed that the stop-work order issued by City Hall had not been lifted.

The hillside construction of 21 luxury bungalows at Damansara Heights drew protests from the public due to concerns over its enviromental impact on surrounding areas.

Chieng dismissed fears that the project might cause landslides, claiming that Damansara 21 was benchmarked against standards in Hong Kong, which has many hillside developments.

“We have fully complied with the Government’s recent guidelines regarding hillside developments, and we are just waiting for further approval,” he said.

SDB reported a net profit of RM17.24mil on turnover of RM164.07mil for the year ended March 31.

By The Star

Selangor Dredging: Up to RM500m launches in pipeline

PROPERTY developer Selangor Dredging Bhd expects to launch several developments totalling RM400 million to RM500 million in gross development value by the end of its fiscal year ending March 31 2010.

The developments include two remaining blocks of its Five Stones condominium development in SS2 in Petaling Jaya and a 33-storey high-rise condominium in Singapore.

"To actively manage the soft property market, we have rescheduled some of our launches such as the Five Stones development," its managing director Teh Lip Kim told reporters after the group's annual general meeting in Kuala Lumpur yesterday.

It has brought forward the launch date for the two remaining blocks of the Five Stones development from the middle of next year to the first quarter.
Five Stones comprises five blocks, with three blocks launched last week. It has already sold 70 per cent of the 185 units.

"We are also resizing some of our units in other property projects. Some of our layouts were relatively big and we have decided to decrease the size," she added.

For instance, the 33-storey condominium project located near Newton Circus in Singapore has been re-planned to house smaller units. This development, to be launched either by year-end or the first quarter of next year, will now have 110 units, instead of 66 units.

Selangor Dredging's unbilled sales from recent launches, including Five Stones and another Singaporean development, Jia, stand at RM235 million.

The group saw its fiscal first-quarter earnings dip because of lower sales recorded by the hotel operation due to the Influenza A (H1N1) virus. Selangor Dredging owns and manages Hotel Maya in Kuala Lumpur.

Net profit for the three months to June 30 2009 dropped 62 per cent to RM2.7 million, while its revenue declined 24 per cent to RM48.7 million.

"The last quarter was bad because all our overseas guests were mainly from Europe, Australia and the US, and they basically stopped travelling. In addition, MNCs (multinational corporations) froze their corporate travels, so we had many cancellations," said Teh.

However, there are signs of improvement for the hotel operations in the present quarter, he said.

By Business Times (by Jeeva Arulampalam)

E&O plans RM4b launches over next 3 to 4 years

PROPERTY developer Eastern & Oriental Bhd (E&O) plans to launch RM4 billion worth of properties over the next three to four years, as the local economic and property market conditions improve.

Of the total, half will be launched in Penang and the rest in the Klang Valley.

"Six to nine months ago, everyone was cautious in some ways and sceptical about buying in the high-end market.

"But based on our experience and performance in Penang and Kuala Lumpur over the last three months, we believe we can still continue to launch (properties) and expect good response at least for the rest of the year," said managing director Datuk Terry Tham after the company's extraordinary general meetings in Kuala Lumpur yesterday.

"So far, as far as our launches are concerned, we are fortunate that all of our them have been well received, with at least 80 per cent of the properties sold," he added.

Tham said the company may hasten its launch of the RM4 billion worth of properties to two years, if the market recovers faster than expected.

E&O, which received shareholders' nod to raise some RM200 million via a rights issue yesterday, plans to raise another RM300 million internally.

"We are looking at disposing of inventories and non-strategic landbank. So far, we have raised some RM100 million through these initiatives," said executive director Eric Chan.

Proceeds from the RM500 million fund-raising could be used to increase cash flow, lower gearings, as well as for expansion. E&O expects to raise the funds over the next 18 months.

E&O's net gearing, which as at March 31 stood at 0.79 times, could be lowered to as low as 0.16 times via the fund-raising.

By Business Times (by Goh Thean Eu)

E&O plans to launch RM4bil property projects

KUALA LUMPUR: Property developer Eastern & Oriental Bhd (E&O), which is looking to raise RM200mil from a 1-for-2 rights issue slated to be completed before the year-end, is targeting to launch RM4bil worth of properties in two to three years.

Managing director Datuk Terry Tham said about RM2bil worth of projects would be launched in the Kuala Lumpur central business district and the balance in Penang.

He said most of E&O’s current projects had good take-up rates, despite the tough economic environment.

“On average about 80% of our property projects have been taken up,” he said after the company EGM yesterday.

He said E&O’s fund-raising exercise would help the company take advantage of the opportunities that might arise in the next economic upturn.

The fund raised would have a coupon of 8% per annum, and irredeemable convertible secured loan stocks (ICSLS) holders have the option to convert to E&O shares any time within the 10-year tenure to take advantage of any upside in the share price.

Also, the ICSLS are secured against the assets of the E&O group to mitigate the risk for holders in the event of a default.

“The money raised from the rights issue will be used to fund strategic acquisitions for expansion purposes,” Tham said, adding that it would also help lower E&O’s gearing from 0.79% to 0.16%. We will channel the bulk of funds raised specifically towards the development of ready-to-market and strong-branded E&O products in prime locations.”

Tham said E&O had another target: raising RM500mil within 18 months. “We have raised RM100mil from property sales and RM200mil could potentially be raised from the rights issue and the balance from internal funds and future property sales.”

He said it was important for E&O to strengthen its balance sheet before embarking on an expansion. Currently, E&O has cash reserves of about RM300mil.

Tham said in the past three months the property market, especially the high-end category, had shown early signs of recovery.

By The Star

Metro Kajang to partner PKNS for RM500m development in Selangor

PROPERTY developer Metro Kajang Holdings Bhd will partner Selangor State Development Corp (PKNS) to develop an integrated project on a 2.4ha leasehold land in the city centre in Kajang, Selangor, for RM500 million.

Group senior general manager Chong Yong Han said the project, dubbed "Kajang Walk", will feature a three-star 300-room city hotel, a retail mall and offices.

Chong said the properties will have a gross built-up area of 1.5 million sq ft and both Metro Kajang and PKNS will jointly promote them to investors in Asia-Pacific, including Malaysia.

"This is our first venture with PKNS and we hope to work together on other potential developments," he said at a signing ceremony in Shah Alam, Selangor, yesterday.
The event saw Metro Kajang college operator Andaman Group and Q-Cell, a Germany-based solar-cell manufacturer inking agreements with PKNS to develop land at the latter's 400ha Selangor Science Park 2 (SSP2) integrated project in Cyberjaya.

PKNS general manager Othman Omar said he believes that the synergistic relationship between PKNS and Metro Kajang will benefit both parties.

By Business Times (by Sharen Kaur)

RM3.8bil investment for science park

SHAH ALAM: Selangor State Development Corp (PKNS) has attracted RM3.8bil worth of investments via three investors for its Selangor Science Park 2 (SSP2) that is under development in Cyberjaya.

The investors are Q-Cell from Germany, the Andaman Group and Serba Sentosa Sdn Bhd, a wholly-owned subsidiary of Metro Kajang Holdings Bhd.

SSP2 is a 1,300-acre mixed development project with gross development value of RM3bil which is expected to be completed between 10 and 15 years.

PKNS general manager Othman Omar said Q-Cell, the largest manufacturer of solar wafer and cells in the world, had started operations in SSP2 in May.

“The company is also collaborating with us to energise PKNS Gallery in SSP2,” he said yesterday after a memorandum of understanding signing ceremony with the investors, witnessed by Selangor Mentri Besar Tan Sri Abdul Khalid Ibrahim.

Q-Cell plans to take up to 100 acres in SPP2 which will involve investment of about RM3bil.

The Andaman Group will develop another SEGi College campus, estimated to cost RM300mil. It had developed a similar campus in PKNS’ earlier project, Selangor Science Park 1, in Kota Damansara.

“Metro Kajang will collaborate with PKNS to develop our commercial and residential area in SSP2.

“In return, PKNS will jointly undertake a commercial development with Metro Kajang in Kajang town centre,” Othman said, adding that the land belonged to Metro Kajang.

Metro Kajang’s project in SSP2 will involve an investment of about RM500mil.

Going forward, Othman said PKNS was in serious talks with local and foreign investors to invest in SSP2. “We want our investors to be in line with the SSP2 concept of high-technology and environment-friendly industries,” he said.

SSP2 would be a low density and sustainable development, with over 20% of the area reserved for green areas and public parks.

By The Star

Hua Yang unit buys land in Pulai

HUA Yang Bhd’s wholly-owned Grandeur Park Sdn Bhd has bought 140.87 acres planted with oil palm in Pulai, Johor, for RM35.15 million from two vendors.

It plans to turn the land into a mixed commercial and residential township with estimated gross development value of RM350 million, Hua Yang said.

By Business Times

Hard Rock Hotel set to add RM10m to Penang economy

The opening of Malaysia's first Hard Rock Hotel in Penang next month is set to generate up to RM10 million for the island-state's economy.

Hard Rock Hotel Penang general manager John Primmer said the figure includes wages and spin-offs to local businesses, including transportation companies and an estimated 100 local vendors.

"We are planning to open three Rock Shop merchandise outlets (in the hotel), offering 150 items from t-shirts, caps, pins to Hard Rock souvenirs, and expect up to RM4 million in revenue from the sale of these items during our first year of operation," he told Business Times.

"These outlets are located at different parts of the hotel and each shop carries a different range of items," he said, adding that the Rock Shop by the main driveway to the hotel will allow convenience and access to the public who are not hotel guests.

The RM150 million Hard Rock Hotel Penang will open its doors on September 19 and has created over 200 jobs.

"Due to the brand and the concept of the hotel, we are looking at young information technology-savvy couples (30 per cent), families (30 per cent), older rockers (20 per cent), and the meetings, incentives, conventions and exhibition market (20 per cent) in terms of the markets we are targeting," Primmer said.

He added that while the concept that the Hard Rock brand carries remains, what makes the Penang property unique is that it will be the first Hard Rock Hotel with a beach front in the world.

"At the same time, it adapts a modern concept compared to the existing Hard Rock hotels outside of the US," he added.

The first Hard Rock Hotel in Asia opened in Bali, Indonesia, in 1998, followed by one in Pattaya, Thailand, in 2001.

The Penang property will be the 10th Hard Rock Hotel worldwide.

By Business Times (by Marina Emmanuel)

Builders cautious on construction prospects

The construction sector, which recorded marginal growth of 0.6 per cent in the first quarter of 2009, should be cautious of its prospects for the rest of the year.

"The total value of projects awarded by the government and private sector, is showing a declining trend," said Malaysian Master Builders Association of Malaysia (MBAM).

Its vice-president, Datuk Aziz Bahaman, said recent data released by the Construction Industry Development Board (CIDB) for the first quarter of 2008 and 2009, pointed to a reduction in the number of projects awarded.

Aziz said total value of projects awarded to the construction sector, between January and March 2009, fell sharply by 70.55 per cent to RM6.14 billion from RM20.85 billion in the corresponding quarter.

Addressing the realities of Malaysia's property and construction sector in a concurrent session held at the Industry Insights Seminar in Kuala Lumpur yesterday, Aziz said there was a contraction of 66.19 per cent or RM5.79 billion in the number of government projects awarded during the quarter under review.

As for the private sector, Aziz said the value of projects awarded plunged 73.70 per cent or RM8.92 billion.

The government awarded RM6.95 billion worth of construction projects under the first stimulus package in November 2008 and RM10 billion under the second stimulus package in March 2009.

The impact of these packages is expected to be felt in the third and fourth quarters of 2009.

By Bernama

Equine plans high-end project

SERI KEMBANGAN: Property developer Equine Capital Bhd is proposing to acquire 108.4ha with an estimated gross development value (GDV) of RM700mil in Batu Kawan, Penang.

The acquisition of the land, for high-end property development, will be funded by internally generated funds and external borrowings.

“We are negotiating with state authorities to expedite the purchase of the land,” Bernama quoted chairman Datuk Seri Tengku Ahmad Shah as saying after the company AGM yesterday.

Equine currently has a total land bank of 141.2ha in Seri Kembangan, Cheras and Batu Kawan, with an estimated GDV of RM1.1bil.

”We are on the look out to acquire land banks in Selangor and Negri Sembilan,” Tengku Ahmad Shah said, adding that its current land bank was sufficient for the company’s property business for the next five to 10 years.

He said Equine would launch several commercial and residential properties this year, with a GDV of RM300mil, mainly in Seri Kembangan, Cheras and Batu Kawan.

He said the development would include three- and four-storey shop lots and landed residential properties.

“We are projecting a growth for our current and future financial years,” Tengku Ahmad Shah said, adding that the company, as at March 31, 2009, had unbilled sales totalling RM70mil.

It posted a pre-tax loss of RM43.75mil for the financial year ended March 31, 2009 as turnover dropped 21% to RM86.083mil.

Tengku Ahmad Shah said Equine Capital would continue to dispose off its non-core business and assets to concentrate on property development.

It planned to sell Wisma KLIH in Bukit Bintang, which was valued at RM35mil, two years ago.

Meanwhile, Equine in a filing with Bursa Malaysia said it had signed a sales and purchase agreement to acquire a 15.88-acre piece of leasehold land in the district of Petaling from Jelang Puncak Sdn Bhd for RM47.4mil.

It planned to develop 156 units of two- and three-storey shopoffices with an estimated gross development value of RM127mil and a gross profit of RM18mil.

It added that the project would commence at the end of next year and was targeted for a mid-2012 completion.

By The Star

Taman Equine buying land in Selangor

EQUINE Capital Bhd's wholly-owned Taman Equine (M) Sdn Bhd is buying a piece of land near Equine Park in Petaling, Selangor, for RM47.4 million, to turn it into a commercial centre.

It will acquire the 64,303 sq m land from Jelang Puncak Sdn Bhd. The land is presently used for recreation and equestrian activities.

In a filing to Bursa Malaysia yesterday, Equine said it plans to build 156 units of two- and three-storey shop offices there, with an estimated gross development value of RM127 million and a gross profit of RM18 million.

The development cost is estimated at RM109 million and will be funded via bank borrowings and internally generated funds.

Development is expected to start by end-2010, with completion in mid-2012.

By Business Times

Mah Sing Q2 net profit falls 38pc year-on-year

Property developer Mah Sing Group Bhd posted a 38 per cent drop in its fiscal second-quarter net profit from a year ago, as last year's gain was boosted by a large property sale.

Its net profit was RM23 million in the quarter to June 30 2009, which is a slight improvement compared to first-quarter net profit of RM22.6 million.

"The group believes the property market is gaining momentum for a likely up cycle in the second half of 2010," Mah Sing said in a statement to Bursa Malaysia yesterday.

The company's revenue for the second quarter was RM167.2 million, down from RM195.4 million a year ago.
Sales for the period were driven by residential property projects like Kemuning Residence, Hijauan Residence and Aman Perdana in the Klang Valley, and Sierra Perdana and Austin Perdana in Johor Baru.

For the first six months, Mah Sing made a net profit of RM45.7 million against RM59.6 million in the same period a year earlier.

Revenue was down 5.5 per cent to RM317.5 million.

However, the company has made sales of RM543 million in the first seven-and-a half months this year, which is more than its full-year target. This was mainly due to the sale of a building in its Southgate project in Kuala Lumpur for RM226 million.

It has also yet to book RM818 million of sales of residential and commercial properties as at June 30 this year.

"The strong take-up for our projects is evidence that the property market is resilient, and niche products with good branding coupled with the right concepts and designs in prime locations will continue to do well," group managing director Tan Sri Leong Hoy Kum said in a separate press release.

By Business Times

Singapore property sales set for record year

SINGAPORE: Record sales of private homes here in July may push the 2009 total to an all-time high as local sentiment and global economic prospects improve, analysts said yesterday.

A total of 2,767 apartments and houses were sold in July - the most ever sold in a single month - and this brought the total for the first seven months of this year to more than 10,000 units, according to official figures.

The previous annual record of 14,811 units was set in 2007 and experts believe there is still pent-up demand from buyers sidelined by high prices that year and the financial crisis of 2008, when property sales dipped sharply.

Buyer interest began to pick up in the first quarter of this year and exploded in the second quarter as developers launched affordable projects and foreign investors returned to the Singapore property market.

"It (2009) is likely to beat the 2007 record of 14,811 units sold," said Chua Chor Hoon, head of Southeast Asia research at property advisers DTZ Debenham Tie Leung.

Property purchases in August, a traditionally slow month for sales in Singapore, are still going strong with some projects sold out or close to selling out within one or two weeks of launch, she noted.

"The general mood is that the worst is over and better times are coming. So buying activity will continue to be strong, unless there is a shock," Chua added.

The government has warned that it may have to intervene if a property bubble forms due to speculation although most analysts do not expect any drastic measures unless housing prices spiral out of ordinary families' reach.

Singapore's economic output is forecast to shrink by 4 to 6 per cent this year, but the city-state is now technically out of recession and back on a growth path.

By AFP

CapitaLand to invest in China and Vietnam

SINGAPORE: Southeast Asia's largest property developer CapitaLand said yesterday it was deploying S$1 billion of S$1.8 billion (S$1 = RM2.44) in capital raised from a recent rights issue to its businesses in China, Vietnam and the Ascott Group.

It said S$500 million of the S$1 billion will go to its China arm, S$299 million to Vietnam and the remainder to Ascott, a wholly-owned unit that operates serviced apartments. The rest of the S$1.8 billion will be kept for further investment opportunities.

"With the worst of the crisis behind us, and with a solid balance sheet, we are ... ready to embark on the next phase of our growth," CEO Liew Mun Leong said.

By Reuters

US home construction posts surprise fall in July

WASHINGTON:US home construction saw a surprise decline in July, with both new starts and building permits suffering a drop after rising for two months, the Commerce Department said yesterday.

Privately-owned housing starts fell at a seasonally adjusted annual rate of 1.0 per cent to 581,000 from the revised June estimate of 587,000.

Building permits to construct privately-owned homes fell to a seasonally adjusted annual rate of 560,000, 1.8 per cent below the revised June rate of 570,000.

By AFP

US$12.5b link proposed

Straits of Malacca Partners Sdn Bhd (SOMP) has proposed to build a US$12.5 billion (RM44.3 billion) bridge connecting Malaysia and Indonesia, a project that was mooted 14 years ago.

The bridge, which will be almost four times the length of the Penang Bridge, will cross the Straits of Malacca at the narrowest point between Malacca and Dumai, Sumatra in Indonesia.

SOMP chairman Tan Sri Ibrahim Zain (picture) said the company has submitted the proposal, both to the Malaysian and Indonesian governments for approval.

"We hope to secure the approval from the two governments by the end of this year or early 2010.

"We need to start the project as soon as possible so that we would not pay higher construction materials cost," he told reporters after a special seminar on the 48.69km-long bridge in Kuala Lumpur yesterday.

Ibrahim said 15 per cent of the funding for the project will come internally while the rest from bank borrowings.

China's Exim Bank plans to support the bridge project.

"Under the bank's policy, we can provide funding up to 85 per cent for such infrastructure projects," Exim Bank of China general manager Tang Yinlian said.

A Chinese firm, Hunan Provincial Communications Planning, Survey and Design Institute (HNCDI), is also involved in the project.

"Exim Bank of China sees the proposed Straits of Malacca bridge as one the biggest in the world and is a far-reaching programme for Malaysia and Indonesia as well as other countries in Southeast Asia," she said.

SOMP has also proposed a joint committee at the government level for both countries to oversee security issues such as immigration and customs.

Managing director Datuk Lim Sue Beng said apart from the bridge, HNCDI also proposed the construction of an underground tunnel that crosses the Straits of Malacca.

Ibrahim and Lim are the major shareholders of SOMP.

Malacca Chief Minister Datuk Seri Mohd Ali Rustam, who attended the seminar, said the proposed bridge will be the longest man-made link between two countries.

"We know that besides government approvals, there are other issues such as land acquisition to be dealt with but that should not be a problem.

"The bridge is a viable and profitable project, and expected to boost the economies of both countries," he said.

He said Prime Minister Datuk Seri Mohd Najib Razak is supportive of the project, first mooted by former prime minister Tun Dr Mahathir Mohamad in 1995.

It was shelved due to the Asian financial crisis in 1997.

The bridge project was brought up during the Ninth Malay World Islamic Convention in Malacca in January this year.

By Business Times (by Kamarul Yunus)

TH, India developers to build luxury homes in Nilai

TH Properties and the developers will build super size luxury bungalows, each standing on 0.4ha, marketed under Malaysia My Second Home.

TH Properties Sdn Bhd will launch by mid-2010, two luxury housing projects worth RM1 billion at its 2,046ha freehold Bandar Enstek development in Nilai, Negri Sembilan, in a joint venture with developers from India.

Chief executive officer Zaharuddin Saidon, who declined to reveal the developers, said each developer will be given 40ha of land to develop under the joint-venture agreement

Zaharuddin told Business Times that they will build super size luxury bungalows, each standing on 0.4ha, marketed under Malaysia My Second Home.

He added that the bungalows would be sold to high networth individuals from India, the Middle East and Singapore.

It is learnt that each bungalow will sell for around RM5 million.

"We can't reveal more details as the agreement is still being finalised. We hope to sign it next month. The developers are preparing the master plan for approval," Zaharuddin said.

"In terms of development value, the Indian partnership will be our biggest investment from overseas into Bandar Enstek."

Zaharuddin said TH-NSTC Sdn Bhd, the developer for Bandar Enstek had been approached by the developers at the start of the current year and initial talks have led to the signing of a memorandum of understanding in March.

He said TH-NSTC is open to similar JVs with local and foreign developers but they should be able to add value to the township and bring in their own market catchment.

"We will consider allocating land to them to develop but we will be cautious in our approach. We rather do it ourselves while we can," Zaharuddin said.

TH-NSTC is a 70:30 venture between TH Properties, the property development arm of Lembaga Tabung Haji, and the Negeri Sembilan State Development Corporation, respectively.

The project is 30 per cent developed with 1,200 units of single and double-storey terraced hou-ses, bungalows and semi-detach-ed houses built and occupied.

The entire development will feature residential, industrial, commercial and institutional components with properties worth RM9.2 billion.

The project is scheduled to be completed in 2025.

By Business Times (by Sharen Kaur)

Unbilled sales of RM1b to boost Sunrise results

PETALING JAYA: Sunrise Bhd’s results for its current financial year will be supported by its unbilled sales of about RM1bil but the tough outlook for the luxury property market in the Klang Valley will continue to be a threat.

According to OSK Research, Sunrise’s unbilled sales stood at RM1.01bil as at July with a potential addition of RM157.1mil pending the signing of sale and purchase agreements.

The research house said the company was expected to continue to register commendable earnings growth for most of its financial year ending June 30, 2010 (FY10) supported by its high unbilled sales. However, the outlook for the Klang Valley luxury condominium market would continue to be tough until some time next year.

It said developers’ claims of better property sales from recent launches should not be misconstrued as a sign of recovery as it was achieved via various discounts and innovative loan packages.

“This can cut into a developer’s earnings margin and such incentives cannot last indefinitely,” it said.

OSK Research viewed that Sunrise’s management sentiment was one of cautious optimism with the belief that the worst was indeed over for the sector.

“Being cautious, however, the management remains uncommitted to any timing and pricing of its future launches,” the research house said.

Meanwhile, AmResearch acknowledged that Sunrise would continue to recognise profits from its strong unbilled sales for FY10 onwards.

Its unsold inventories had dropped to about RM200mil as at June versus RM300 to RM400mil in the preceding quarter.

“We feel Sunrise will step up its plans for new launches especially for MK28 and Solaris Towers KL, which have been granted all the necessary approvals,” the research house said.

For its overseas projects, AmResearch said the management was still cautious in launching overseas projects.

Its project in Canada, which has a gross development value of RM1.2bil, would be launched in two phases three years apart.

Sunrise posted a net profit of RM43.1mil for the fourth quarter ended June 30 against RM44.9mil a year ago. Its revenue stood at RM237.3mil.

For FY09, it reported a net profit of RM156.2mil on a 17% growth in revenue to RM803.9mil.

OSK Research said the growth for FY09 was driven by higher earnings contribution from its property projects that included MK10, Dutamas, Maiden, MK11 and the Residence.

“Since the introduction of the 10/90 financing scheme and two-year deferred payment for buyers, new property sales indeed picked up in the fourth quarter, particularly for the MK11 and the Residence,” the research house said.

HwangDBS Vickers Research said Sunrise’s net profit for the fourth quarter was within its expectations.

“Its net gearing rose to 46% from 38% in the third quarter due to funding for on-going projects but it is expected to improve with unbilled sales,” it said.

HwangDBS raised the company’s earning estimates by 37% to RM148mil after taking into account stronger take-up rates for upcoming launches.

“Consequently, we raised the target price to RM2.60 from RM2.10 based on 30% discount to revised net asset value of RM3.77 and maintain our ‘buy’ call,” it said.

AmResearch revised Sunrise’s earnings estimates to RM174mil and RM177mil for FY10 and FY11 respectively, in view of the expected launches for its MK28 and Solaris Towers.

It forecast the company’s FY12’s earnings at RM178.3mil.

The research house also expected Sunrise’s gearing to improve to 34% in FY10 and 22% in FY11.

By The Star (by Lee Kian Seong)

Land sale deal extended

IRIS Corp Bhd and Mapletree Industrial Fund Ltd have agreed to extend the deal to sell two plots of land with a building at Technology Park Malaysia.

The parties now agreed that negotiations to seal the sale and purchase agreement of the land and a four-and-a-half storey block be extended to November 18 this year from August 19 originally.

According to the plan first announced in 2007, Iris would sell the land to Mapletree before leasing them back.

By Business Times

Subang SkyPark eyes up to RM7m revenue from terminal

SUBANG SkyPark Sdn Bhd is confident of recording RM6 million to RM7 million in revenue from its refurbished Skypark Subang Terminal (SST), formerly known as Terminal 3, by May next year.

Executive director Tan Sri Ravindran Menon said the city airport operator was confident of achieving its target with the completion of works at SST by October this year.

"The RM40 million terminal is 90 per cent completed and destined to become Malaysia's premier airport in the city," he said at a media sneak preview of the SST in Petaling Jaya, Selangor yesterday. When fully operational, the SST is able to accommodate an average of 60 flights daily, comprising of local and regional arrivals and departures, he said.

Presently, Berjaya Air and Firefly are using the terminal for international and domestic flights.

The 150,000-square foot SST is expected to handle 2.5 million passengers by end of this year, Ravindran said.

Currently, passenger numbers are peaking at 60,000 a month, he said.

The company is involved in the RM300 million redevelopment plan for the Subang airport, consisting of RM40 million for phase one, RM110 million for phase two and RM150 million for phase three.

Ravindran said the three phases included a city airport for turbo-prop aircraft, fixed base operations for business jets, and maintenance, repair and overhaul facilities.

The three phases are scheduled for full completion by end-2011, he said.

By Bernama