KUALA LUMPUR: AEON Co (M) Bhd and Parkson Retail Asia (PRA)'s solid price to earnings (PE) ratio shows that good consumer companies in the region rightly command higher valuations.
In its report, OSK Research Sdn Bhd has tagged AEON, which runs the Jusco retail stores, at a higher PE of 15 times to RM8.23.
PRA, which was recently listed on the Singapore Stock Exchange (SGX), currently trades at a 18 times forward PE, it added.
"Although the group posted two consecutive quarters of top and bottom-line year-on-year contractions, AEON still logged in positive revenue and net profit growth in Q3 after reopening its department store in 1 Utama. Since August, the company has been delivering positive profit growth since 1998," it said.
Hence, OSK Research has recommended the stock as a "buy", at a fair value of RM8.23.
It said AEON has new stores in the pipeline. The retailer plans to open two to three outlets next year alone.
"In the next two years, we expect AEON to open one outlet each in Kedah, Johor and Penang, for which the land was acquired in early 2011 (in Kedah and Johor) and in December in Penang," it said.
AEON also plans to penetrate Sabah and Sarawak, where it has no presence, next year. At the same time, the group will maintain its strategy as a residential area mall and will only penetrate small towns.
OSK Research likes AEON's unique business model as a department store-cum-shopping mall operator, which locates its outlets near residential areas and targets the mass market.
It said PRA's higher forward PE than AEON's reflects the former's regional presence and faster growth.
By Business Times
Saturday, December 24, 2011
TA Enterprise Q3 profit falls to RM20m
KUALA LUMPUR: TA Enterprise Bhd’s pre-tax profit declined to RM20 million in the third quarter ended October 31 from RM36.5 million in the same quarter last year.
However, its revenue rose to RM173.1 million from RM153.3 million previously.
In a statement to Bursa Malaysia yesterday, TA Enterprise said it recorded lower contributions from both the stockbroking arm and TA Global Group in the current quarter.
It said contributions from its property division would continue to be positive, despite growing uncertainties in the global economic landscape.
By Business Times
However, its revenue rose to RM173.1 million from RM153.3 million previously.
In a statement to Bursa Malaysia yesterday, TA Enterprise said it recorded lower contributions from both the stockbroking arm and TA Global Group in the current quarter.
It said contributions from its property division would continue to be positive, despite growing uncertainties in the global economic landscape.
By Business Times
Friday, December 23, 2011
Three-storey superlink homes launched
LBS Bina Group Berhad (LBS) launched Nautilus, D’Island Residence’s latest three-storey superlink homes priced from RM1.71mil for land area of 24’ x 80’ and RM1.81mil for the 24’ x 100’ recently.
Inspired by the classic charm of the Nordic region as well as its renowned tradition of minimalist design, Nautilus will appeal to those with a discerning taste for subtlety and understated elegance.
The luxury Superlink homes, each endowed with an authentically Nordic essence, boast a spacious gross built-up area from 4,246sq ft for 24’ x 80’ and from 4,791sq ft for 24’ x 100’, defined by versatile en suite spaces throughout.
Distinctively contemporary in design, Nautilus offers two lavish layout choices with five bedrooms, one utility room and six bathrooms.
The architecture and overall design of Nautilus is characterised by a series of modern, symmetrical forms, enhanced by a subdued colour palette.
The spacious interior of each home is further accentuated with an expansive indoor atrium which allows for an abundance of natural light, illuminating indoor areas and bringing forth a feeling of domestic warmth.
A private roof garden serves as a natural extension into the great outdoors, facilitating spectacular views of the development’s beautifully landscaped surroundings.
The inclusion of a private in-house lift gives residents the ultimate sense of exclusivity.
Explaining the overall concept for the luxury residential development, LBS managing director Datuk Lim Hock San said, “Our idea is to capitalise on the natural terrain and the beautiful 404ha water mass surrounding the 71ha D’Island Residence development. We will use existing landscapes to bring out the best in each launched phase to create a unique experience for every homeowner.”
In addition to exclusive sunrise and sunset views right from their terraces, residents at D’Island Residence will be able to delight in the calm waters and pristine landscaping surrounding their homes.
The serene laid-back atmosphere will provide the foundation for an inspiring way of life, creating a haven for residents to unwind and recharge.
Thus far, all 122 units of Apicalia, D’Island Residence’s first phase three-storey luxury superlink units have been sold.
The recently launched 44 units of Balvia, a series of three-storey semi-detached homes, are already more than 40% sold.
D’Island Residence has an estimated GDV of RM3.6bil and is expected to take five to seven years to complete.
The development’s superlinks, semi-detached and bungalows are scheduled to be launched in 2012.
By The Star
Well connected township
Mah Sing Group previewed its new 91ha township, M Residence@ Rawang for priority registrants recently, with 80% take up of Phase 1 achieved in a single day.
The township which has an estimated gross development value of approximately RM948mil drew some 2,500 registrants since the land was acquired in October.
Good buy: Priority registrants having a first look at M Residence@Rawang.
Registrants were able to confirm their interest for properties in Phase 1 comprising 214 units of 18’x70’ link homes with built up of approximately 1,650sq ft priced from RM360,800.
Phase 2 shall be opened to meet buyers’ demand. This comprises 233 units of 22’x80’ superlink homes with built-up of approximately 2,380sq ft priced from RM558,800.
Mah Sing’s chief operating officer James Bryuns said, “M Residence@Rawang meets the current need for quality housing at accessible entry level. We believe that Phase 2 shall see equally strong interest as we are offering semi-detached layouts in our superlink homes, at link home pricing.”
The 22-footers in M Residence@Rawang have an expansive layout boasting three bedrooms with en-suites on the first floor, whilst the ground floor houses the living room, dry and wet kitchen, a guest room, bathroom and powder room. They also enjoy a generous 10ft yard area at the back.
M Residence@Rawang is well connected and is only 5km from the mature townships of Anggun 1&2@Kota Emerald and 8km from Emerald East and West. It only takes 20 minutes to get to the Rawang toll from Kuala Lumpur (Jalan Duta toll) and Petaling Jaya (Damansara toll).
In terms of distance, it is only 28km from both tolls. From the Rawang toll, it is less than 10 minutes or 10km to the project.
A major road upgrade to turn the road into a dual carriageway from the junction of the Rawang toll to the junction of the main road to Bandar Tasik Puteri is in progress, and shall improve the traffic flow along this road. M Residence@Rawang can also be accessed via the Kuala Lumpur-Kuala Selangor Expressway (formerly known as Latar Highway).
Besides Rawang town itself, the project has a large target market catchment from Kuala Lumpur, Petaling Jaya, Shah Alam, Bukit Jelutong, Subang Jaya, USJ, Kepong and Selayang who are looking for an affordable alternative in a well connected location.
Furthermore, there are large catchments of upgraders from Batu Arang, Kundang, Kuang, Sungai Buloh, in search of new township schemes offering a lifestyle concept.
Bukit Badong Forest Reserve is located next to M Residence@Rawang and extensive green reserves namely Templer’s Park, Kanching Forest Park and Commonwealth Forest Park are all within the radius of 15km of the project.
By The Star
The township which has an estimated gross development value of approximately RM948mil drew some 2,500 registrants since the land was acquired in October.
Registrants were able to confirm their interest for properties in Phase 1 comprising 214 units of 18’x70’ link homes with built up of approximately 1,650sq ft priced from RM360,800.
Phase 2 shall be opened to meet buyers’ demand. This comprises 233 units of 22’x80’ superlink homes with built-up of approximately 2,380sq ft priced from RM558,800.
Mah Sing’s chief operating officer James Bryuns said, “M Residence@Rawang meets the current need for quality housing at accessible entry level. We believe that Phase 2 shall see equally strong interest as we are offering semi-detached layouts in our superlink homes, at link home pricing.”
The 22-footers in M Residence@Rawang have an expansive layout boasting three bedrooms with en-suites on the first floor, whilst the ground floor houses the living room, dry and wet kitchen, a guest room, bathroom and powder room. They also enjoy a generous 10ft yard area at the back.
M Residence@Rawang is well connected and is only 5km from the mature townships of Anggun 1&2@Kota Emerald and 8km from Emerald East and West. It only takes 20 minutes to get to the Rawang toll from Kuala Lumpur (Jalan Duta toll) and Petaling Jaya (Damansara toll).
In terms of distance, it is only 28km from both tolls. From the Rawang toll, it is less than 10 minutes or 10km to the project.
A major road upgrade to turn the road into a dual carriageway from the junction of the Rawang toll to the junction of the main road to Bandar Tasik Puteri is in progress, and shall improve the traffic flow along this road. M Residence@Rawang can also be accessed via the Kuala Lumpur-Kuala Selangor Expressway (formerly known as Latar Highway).
Besides Rawang town itself, the project has a large target market catchment from Kuala Lumpur, Petaling Jaya, Shah Alam, Bukit Jelutong, Subang Jaya, USJ, Kepong and Selayang who are looking for an affordable alternative in a well connected location.
Furthermore, there are large catchments of upgraders from Batu Arang, Kundang, Kuang, Sungai Buloh, in search of new township schemes offering a lifestyle concept.
Bukit Badong Forest Reserve is located next to M Residence@Rawang and extensive green reserves namely Templer’s Park, Kanching Forest Park and Commonwealth Forest Park are all within the radius of 15km of the project.
By The Star
Property market to see a gradual slowdown next year
KUALA LUMPUR: The Malaysian property market is likely to see a gradual slowdown next year, taking into consideration the uncertainty in the global economic situation.
Fiabci Malaysia president Yeow Thit Sang said the high end residential units were already seeing a slowdown both in pricing and take-up rate.
“There are fewer expatriates from multinational companies coming here and rentals with a yield of between 6% and 8% are no longer achievable. Investors in these units will have to wait longer to realise their investment. The slowdown in global economy is definitely affecting the high-end property market,” he told Bernama recently.
He also saw a fallout for office space next year, saying the category was already overbuilt and the overhang felt in the market with rental falling and a slow take-up rate.
Meanwhile, Zerin Properties chief executive officer Previndran Singhe said the slowdown in the property market would only last until the first quarter next year and the industry would be stable afterwards.
“Prices will remain stable, with asking prices, not values, becoming more reasonable as owners check their values to real pricing. At present, sentiment is down due to the eurozone financial crisis and the US double dip fears, which has been faring for a long time, but I think we are more Asia focused,” he said.
By Bernama
Fiabci Malaysia president Yeow Thit Sang said the high end residential units were already seeing a slowdown both in pricing and take-up rate.
“There are fewer expatriates from multinational companies coming here and rentals with a yield of between 6% and 8% are no longer achievable. Investors in these units will have to wait longer to realise their investment. The slowdown in global economy is definitely affecting the high-end property market,” he told Bernama recently.
He also saw a fallout for office space next year, saying the category was already overbuilt and the overhang felt in the market with rental falling and a slow take-up rate.
Meanwhile, Zerin Properties chief executive officer Previndran Singhe said the slowdown in the property market would only last until the first quarter next year and the industry would be stable afterwards.
“Prices will remain stable, with asking prices, not values, becoming more reasonable as owners check their values to real pricing. At present, sentiment is down due to the eurozone financial crisis and the US double dip fears, which has been faring for a long time, but I think we are more Asia focused,” he said.
By Bernama
HK ‘Superman’ swoops on another mall
The Cheung Kong Group, owned by Hong Kong tycoon Li Ka-shing, is buying The Citta Strip Mall for an estimated RM245 million.
Sources told Business Times that the purchase was done through Cheung Kong Group’s ARA Asia Dragon Fund.
Citta, the new suburban mall in Ara Damansara, is 70 per cent-owned by German real estate fund SEB Asset Management and 30 per cent by property developer Puncakdana Group.
“There are a few conditions precedent that have to be met before the deal is completed and one of it is state approval,” a source told Business Times.
Messages left at the office of Mah Siew Sian, the managing director of Puncakdana, were not returned.
The open air shopping mall, with some 424,467 sq ft of nett lettable space, opened for B4business in April 2011.
The mall covers three floors, excluding the basement and rooftop, and has over 800 car park bays.
Tenants in the mall include Harvey Norman, MBO cinema, Pappa Rich, Chili’s, Julia Gabriel, RakuZen and Anjappar Restaurant.
Li, who is in the list of Asia’s richest men, is known as “Superman” in Hong Kong due to his deal-making ability.
His Cheung Kong conglomerate is one of Hong Kong’s biggest property developers and owns the world’s largest operator of container ports, among others.
Cheung Kong’s affiliate, ARA Asia Dragon Fund, bought two properties in Malaysia last year – One Mont’ Kiara in Kuala Lumpur and Aeon Bandaraya Mall Melaka – for a total of RM710 million.
In May, ARA Asia Dragon Fund won the bid for three shopping complexes – Klang Parade in Selangor, Ipoh Parade in Perak and Seremban Parade in Negri Sembilan.
It paid some RM450 million to TMW Asia Property Fund.
By Business Times
Consultants: Right timing for PNB's RM1.74bil London property buy
PETALING JAYA: Permodalan Nasional Bhd's (PNB) reported 350mil (RM1.74bil) purchase of Milton & Shire House building in London is a good move owing to the weak pound sterling and the European economic woes, said property consultants.
The Times reported recently that PNB had bought the 15-floor complex from US-based fund manager Beacon Capital Partners.
The complex is said to have 460,000 sq ft of office space, and houses global law firm Linklaters which is paying RM100mil in rental annually on a lease that expires in 2026.
CB Richard Ellis executive chairman Christopher Boyd said that it was a unique time to buy real estate in London, as traditional major funds from the United States and Europe were not in the market due to the global economic slowdown.
“So you have less competition for buildings like this. The downside risk is minimal as PNB bought the building with a long lease,” he said.
Property consultancy DTZ Nawawi Tie Leung executive director Brian Koh pointed out that London was a global financial and commercial centre, and had some of the most expensive real estate in the world.
“In good times, it is very difficult to penetrate the London market due to high competition for prime properties, which accounted for its low historical yield,” he said.
Koh said the weak pound and the liquidity crunch in Europe, due to the eurozone debt crisis, had made it easier for players from the Middle East, South Korea and Malaysia, among others, to enter the London real estate market at reasonable prices.
The Times said it was the “largest single asset transaction in central London this year”.
It also said PNB was believed to have allocated 1bil (RM4.98bil) for London investments.
The daily quoted PNB president and group chief executive Tan Sri Hamad Kama Piah Che Othman as saying the transaction was “part of a strategic plan in acquiring premium assets in major cities globally after the acquisition of our maiden overseas property, Santos Place in Brisbane last year”.
PNB reportedly bought the upmarket office block in Brisbane for more than A$290mil (RM931mil).
The 37-storey building has 373,508 sq ft of lettable space with about two-thirds of that leased to Australian oil and gas giant, Santos.
A recent StarBiz report quoted sources as saying PNB was looking to invest in properties primarily in London, Sydney, Melbourne and Perth.
PNB's management could not be reached for comments at press time.
By The Star
The Times reported recently that PNB had bought the 15-floor complex from US-based fund manager Beacon Capital Partners.
The complex is said to have 460,000 sq ft of office space, and houses global law firm Linklaters which is paying RM100mil in rental annually on a lease that expires in 2026.
CB Richard Ellis executive chairman Christopher Boyd said that it was a unique time to buy real estate in London, as traditional major funds from the United States and Europe were not in the market due to the global economic slowdown.
“So you have less competition for buildings like this. The downside risk is minimal as PNB bought the building with a long lease,” he said.
Property consultancy DTZ Nawawi Tie Leung executive director Brian Koh pointed out that London was a global financial and commercial centre, and had some of the most expensive real estate in the world.
“In good times, it is very difficult to penetrate the London market due to high competition for prime properties, which accounted for its low historical yield,” he said.
Koh said the weak pound and the liquidity crunch in Europe, due to the eurozone debt crisis, had made it easier for players from the Middle East, South Korea and Malaysia, among others, to enter the London real estate market at reasonable prices.
The Times said it was the “largest single asset transaction in central London this year”.
It also said PNB was believed to have allocated 1bil (RM4.98bil) for London investments.
The daily quoted PNB president and group chief executive Tan Sri Hamad Kama Piah Che Othman as saying the transaction was “part of a strategic plan in acquiring premium assets in major cities globally after the acquisition of our maiden overseas property, Santos Place in Brisbane last year”.
PNB reportedly bought the upmarket office block in Brisbane for more than A$290mil (RM931mil).
The 37-storey building has 373,508 sq ft of lettable space with about two-thirds of that leased to Australian oil and gas giant, Santos.
A recent StarBiz report quoted sources as saying PNB was looking to invest in properties primarily in London, Sydney, Melbourne and Perth.
PNB's management could not be reached for comments at press time.
By The Star
Thursday, December 22, 2011
LBS upbeat on RM800m sales target
LBS Bina Group Bhd (LBS) is confident of achieving RM800 million sales target despite a challenging year ahead.
Managing director Datuk Lim Hock San said strong market demand and competition in the property sector will generate higher value for Malaysian homebuyers.
"We feel this is a positive sign as this creates the opportunity for more innovative and creative products for consumers. Homebuyers will be at an advantage as each investment dollar will generate higher value for them," he said.
Landed property for both affordable homes and high-end homes are expected to be the highlights of 2012 with the rising scarcity of land in urban areas.
Property prices are expected to continue climbing albeit at a lower rate compared with this year.
LBS has a land bank of some 931.5ha worth an estimated gross development value (GDV) of RM9.1 billion.
Lim said the group will launch 13 new projects comprising 2,085 units with a GDV of RM1.5 billion together with some 19 ongoing projects with a GDV of RM562 million.
This includes D'Island Residence, Bandar Saujana Putra, Taman Golden Hills in Cameron Highlands and Bandar Putera Indah in Batu Pahat, Johor.
While focusing on the high-end market, Lim said LBS will continue to offer quality homes in the medium-cost range.
With the implementation of My First Home Scheme and other government initiatives, LBS anticipates this market to contribute 20 per cent to total revenue.
"With our recent rebranding and progressive changes, we will continue to learn and improve throughout the year. Part of that process includes recrui-ting more talented employees to take our growth to the next level," he said.
By Business Times
Managing director Datuk Lim Hock San said strong market demand and competition in the property sector will generate higher value for Malaysian homebuyers.
"We feel this is a positive sign as this creates the opportunity for more innovative and creative products for consumers. Homebuyers will be at an advantage as each investment dollar will generate higher value for them," he said.
Landed property for both affordable homes and high-end homes are expected to be the highlights of 2012 with the rising scarcity of land in urban areas.
Property prices are expected to continue climbing albeit at a lower rate compared with this year.
LBS has a land bank of some 931.5ha worth an estimated gross development value (GDV) of RM9.1 billion.
Lim said the group will launch 13 new projects comprising 2,085 units with a GDV of RM1.5 billion together with some 19 ongoing projects with a GDV of RM562 million.
This includes D'Island Residence, Bandar Saujana Putra, Taman Golden Hills in Cameron Highlands and Bandar Putera Indah in Batu Pahat, Johor.
While focusing on the high-end market, Lim said LBS will continue to offer quality homes in the medium-cost range.
With the implementation of My First Home Scheme and other government initiatives, LBS anticipates this market to contribute 20 per cent to total revenue.
"With our recent rebranding and progressive changes, we will continue to learn and improve throughout the year. Part of that process includes recrui-ting more talented employees to take our growth to the next level," he said.
By Business Times
BLand Q2 net profit higher
KUALA LUMPUR: Berjaya Land Bhd’s net profit rose to RM55.85 million in the second quarter ended October 31 this year from RM43.69 million a year ago.
Group revenue, however, eased to RM988.9 million from RM1.02 billion previously.
The slightly lower revenue was mainly due to the lower property sales registered by its property development business, BLand said in a statement yesterday.
By Business Times
Group revenue, however, eased to RM988.9 million from RM1.02 billion previously.
The slightly lower revenue was mainly due to the lower property sales registered by its property development business, BLand said in a statement yesterday.
By Business Times
Wednesday, December 21, 2011
LBS Bina bullish on meeting sales target
Property developer, LBS Bina Group Bhd, is confident of achieving RM800 million sales target despite tough market
conditions.
In a statement today, managing director, Datuk Lim Hock San, said 2012 was expected to be a challenging yet confident year for LBS.
He said My First Home Scheme and other government initiatives would contribute 20 per cent to the group's total revenue.
"Currently, LBS Bina has a land bank of some 920 hectares with an estimated gross development value (GDV) of RM9.1 billion, that will keep it busy for the next few years," he said.
Lim said LBS Bina would be launching 13 projects comprising 2,085 units with a GDV of RM1.5 billion together with some 19 ongoing projects with a GDV of RM562 million.
He expected landed property for both affordable homes and high-end homes would be the highlight next year amid scarcity of land in urban areas.
"At the same time, property prices would continue increasing but at a lower rate compared to this year, especially in a 'central' location," he said.
By Bernama
conditions.
In a statement today, managing director, Datuk Lim Hock San, said 2012 was expected to be a challenging yet confident year for LBS.
He said My First Home Scheme and other government initiatives would contribute 20 per cent to the group's total revenue.
"Currently, LBS Bina has a land bank of some 920 hectares with an estimated gross development value (GDV) of RM9.1 billion, that will keep it busy for the next few years," he said.
Lim said LBS Bina would be launching 13 projects comprising 2,085 units with a GDV of RM1.5 billion together with some 19 ongoing projects with a GDV of RM562 million.
He expected landed property for both affordable homes and high-end homes would be the highlight next year amid scarcity of land in urban areas.
"At the same time, property prices would continue increasing but at a lower rate compared to this year, especially in a 'central' location," he said.
By Bernama
Tenders for KLIFD project now open
KUALA LUMPUR: 1Malaysia Development Bhd (1MDB) has started a tender process on major foundation works for the Kuala Lumpur International Financial District (KLIFD), where a pre-qualification exercise is currently under way.
The tender invitation is scheduled for completion in mid-February, while the construction is expected to start in the first quarter of next year.
1MDB, is inviting contractors to participate in the construction and completion of earthwork and excavation works, retaining structure, piling works and related sub-structure works.
"This is probably among the largest earthworks, covering the size of about 20 football fields or 12ha, and excavating about 20m into the ground." 1MDB Real Estate Sdn Bhd deputy CEO of operations Datuk Azmar Talib said .
1MDB said the pre-qualification notice, advertised on December 8 2011 in the newspapers, will close on January 6 2012. It is also available at www.1mdb.com.my.
By Business Times
The tender invitation is scheduled for completion in mid-February, while the construction is expected to start in the first quarter of next year.
1MDB, is inviting contractors to participate in the construction and completion of earthwork and excavation works, retaining structure, piling works and related sub-structure works.
"This is probably among the largest earthworks, covering the size of about 20 football fields or 12ha, and excavating about 20m into the ground." 1MDB Real Estate Sdn Bhd deputy CEO of operations Datuk Azmar Talib said .
1MDB said the pre-qualification notice, advertised on December 8 2011 in the newspapers, will close on January 6 2012. It is also available at www.1mdb.com.my.
By Business Times
Court: Ho Hup has no standing
PUTRAJAYA: The Court of Appeal has ruled that Ho Hup Construction Co Bhd has no locus standi to bring a legal action against its subsidiary Bukit Jalil Development Sdn Bhd, and Pioneer Haven Sdn Bhd, over a joint development agreement (JDA) on a 24.3ha land.
A three-member panel of the Court of Appeal comprising Justices Zainun Ali, Ramli Ali and Zaharah Ibrahim made the ruling unanimously, and as such, reversed the High Court decision which was in favour of Ho Hup Construction.
“On the issue of whether Ho Hup has locus standi in its own right to bring an action (against the appellants), our answer is in the negative.
“The directors that Ho Hup can restrain are the directors of Bukit Jalil Development only, not of Ho Hup itself, as the asset in question (the 24.3ha land) is the asset of Bukit Jalil Development,” Justice Zainun ruled yesterday.
The appellate court also ruled that the JDA between Bukit Jalil Development (a 70% subsidiary of Ho Hup Construction) and Pioneer Haven (a wholly-owned unit of Malton Bhd) did not amount to a disposal of the land.
“Unless and until the land is registered in the name of Pioneer Haven, the land remains the property of Bukit Jalil, which has indefeasible title over the land,” Justice Zainun ruled.
It was previously reported that Ho Hup had entered into the JDA (via Bukit Jalil Development) with Pioneer Haven on March 16 last year, with a plan to see the partners jointly develop the freehold land in Bukit Jalil into a mixed commercial and residential project.
Later that year, Ho Hup filed the suit against Bukit Jalil Development, Pioneer Haven and nine others over the matter.
In June this year, the Kuala Lumpur High Court had ruled that Ho Hup's previous board of directors had acted in breach of its duties to Ho Hup by committing Bukit Jalil Development to the JDA, and that Pioneer Haven had knowingly assisted in those breaches.
The High Court had found that the JDA was, in substance, a disposal of the land, and as such, required the approval of shareholders under Section 132C of the Companies Act, 1965.
As no such approval was obtained, the High Court ruled that the JDA was null and void, which would enable Ho Hup Construction to proceed with its financial regularisation plan, which had been delayed pending the outcome of the suit.
Pioneer Haven and seven others then appealed against the High Court decision.
Representing Pioneer Haven was counsel Datuk Seri Muhammad Shafee Md Abdullah, while lawyer Malik Imtiaz Sarwar stood for Ho Hup Construction.
Ho Hup told Bursa Malaysia yesterday that it would be filing an appeal to the Federal Court.
“Meanwhile, the Court of Appeal has given Jan 30, 2012, as the hearing date for an application to be filed by Ho Hup for an order for the preservation of the rights and interests of Ho Hup,” it said.
By The Star
A three-member panel of the Court of Appeal comprising Justices Zainun Ali, Ramli Ali and Zaharah Ibrahim made the ruling unanimously, and as such, reversed the High Court decision which was in favour of Ho Hup Construction.
“On the issue of whether Ho Hup has locus standi in its own right to bring an action (against the appellants), our answer is in the negative.
“The directors that Ho Hup can restrain are the directors of Bukit Jalil Development only, not of Ho Hup itself, as the asset in question (the 24.3ha land) is the asset of Bukit Jalil Development,” Justice Zainun ruled yesterday.
The appellate court also ruled that the JDA between Bukit Jalil Development (a 70% subsidiary of Ho Hup Construction) and Pioneer Haven (a wholly-owned unit of Malton Bhd) did not amount to a disposal of the land.
“Unless and until the land is registered in the name of Pioneer Haven, the land remains the property of Bukit Jalil, which has indefeasible title over the land,” Justice Zainun ruled.
It was previously reported that Ho Hup had entered into the JDA (via Bukit Jalil Development) with Pioneer Haven on March 16 last year, with a plan to see the partners jointly develop the freehold land in Bukit Jalil into a mixed commercial and residential project.
Later that year, Ho Hup filed the suit against Bukit Jalil Development, Pioneer Haven and nine others over the matter.
In June this year, the Kuala Lumpur High Court had ruled that Ho Hup's previous board of directors had acted in breach of its duties to Ho Hup by committing Bukit Jalil Development to the JDA, and that Pioneer Haven had knowingly assisted in those breaches.
The High Court had found that the JDA was, in substance, a disposal of the land, and as such, required the approval of shareholders under Section 132C of the Companies Act, 1965.
As no such approval was obtained, the High Court ruled that the JDA was null and void, which would enable Ho Hup Construction to proceed with its financial regularisation plan, which had been delayed pending the outcome of the suit.
Pioneer Haven and seven others then appealed against the High Court decision.
Representing Pioneer Haven was counsel Datuk Seri Muhammad Shafee Md Abdullah, while lawyer Malik Imtiaz Sarwar stood for Ho Hup Construction.
Ho Hup told Bursa Malaysia yesterday that it would be filing an appeal to the Federal Court.
“Meanwhile, the Court of Appeal has given Jan 30, 2012, as the hearing date for an application to be filed by Ho Hup for an order for the preservation of the rights and interests of Ho Hup,” it said.
By The Star
Tuesday, December 20, 2011
Digital master plan for KLIFD
KUALA LUMPUR: 1Malaysia Development Bhd (1MDB) is developing a Digital Master Plan for the Kuala Lumpur International Financial District (KLIFD).
In a statement, 1MDB Real Estate Sdn Bhd deputy chief executive officer Datuk Azmar Talib said the aim was for KLIFD to be a leading financial district with state-of-the-art connectivity, utilising technologies that were smart, intelligent and future proof.
The blueprint will be used to build solutions that embrace sustainability and connectivity through new Internet technologies and infrastructure services.
1MDB has gathered a global team of IT experts and digital planners led by Accenture Solutions Sdn Bhd to draw up the Digital Master Plan for KLIFD.
“With their proven experience, Accenture will be able to help us identify the scale of the infrastructure and how to put it best, focusing on strategic services that work towards current and future needs,” said Azmar.
“Today, nearly everything can be done electronically and remotely. But nothing can replace the human connectivity – the personal touch and personal interaction for ideas and businesses to thrive.”
In the same statement, Accenture Malaysia country managing director Goh Aik Meng said digital services would help differentiate KLIFD as a pioneering financial district and as a place to live and work.
“It is a pleasure to be teaming with 1MDB on this project, and it confirms our long-term commitment to Malaysia in supporting the national development objectives of the Economic Transformation Plan.”
KLIFD is currently at the master planning phase and is on track to start construction beginning of next year.
The 75-acre development in the Imbi area fronting Jalan Tun Razak aims to bring together leading financial institutions and top global companies to create a catalytic pool of world-class players. It will leverage on Malaysia’s existing strength in Islamic finance and play on its strategic location to complement other financial centres within the region.
1MDB recently appointed Akitek Jururancang (M) Sdn Bhd and its international partner Machado Silvetti and Associates as the master planners for KLIFD.
1MDB is wholly-owned by the Government and serves as a strategic enabler for new ideas and sources of growth to propel economic transformation.
By The Star
PNB: Work on RM5b tower project starts mid-2012
PERMODALAN Nasional Bhd (PNB) expects to start ground works on the proposed 100-storey Menara Warisan Merdeka project by the middle of next year.
Its president and chief executive officer Tan Sri Hamad Kama Piah Che Othman said PNB has already submitted plans, including design and concept for approval to the Kuala Lumpur City Hall recently.
"We hope to receive the approval soon and will make an announcement accordingly," he told reporters after a media briefing to announce the income distribution for its Amanah Saham Bumiputera scheme for financial year ended December 31 2011 here yesterday.
He said this when was asked to provide update on the mega project.
"Usually, it takes several months for the approvals from the City Hall. We will give ample time to City Hall to evaluate thoroughly to avoid any problems in future.
"(But) by the middle of next year, we think we can carry out several groundworks and others on the project," he said.
Earlier reports said that PNB will be undertaking the RM5 billion Warisan Merdeka development over three phases in 10 years, starting with the 100-storey tower this year.
It was reported that the development will also have a shopping complex and condominium.
The tower - touted to be the country's tallest - will cost RM2.5 billion to RM3 billion and will have gross floor space of three million sq ft and 2.2 million sq ft of net floor space.
It is scheduled to be completed in 2015.
It was also reported that PNB had set up wholly-owned unit PNB Merdeka Ventures Sdn Bhd to undertake the project.
Tengku Abdul Aziz Tengku Mahmud, formerly from Guthrie Property Development Holding Bhd and Sime Darby Property Bhd, heads the company now.
Apart from the Warisan project site, PNB's other property portfolio includes Menara PNB, PNB Darby Park, Kenanga International Building, Bangunan MAS in Kuala Lumpur, Hotel Perdana in Kota Baru and PNB Ilham Resort in Port Dickson, Negri Sembilan.
Commenting on the uncertainty of the global economy next year, Hamad Kama Piah said PNB has its own strategy to face the challenges in the global arena.
"We have been facing uncertainties almost now and then. The issue of US economy, the issue of Europe, we just cannot say it is a small thing. It is something big in the world.
"So far, we have done our best because in terms of strategy, we as a long-term player have to make sure that we are creating growth for the future.
"Our strategy is always creating value, while more or less every year we pay dividend. This is the basic principle of investing," he said.
By Business Times
Its president and chief executive officer Tan Sri Hamad Kama Piah Che Othman said PNB has already submitted plans, including design and concept for approval to the Kuala Lumpur City Hall recently.
"We hope to receive the approval soon and will make an announcement accordingly," he told reporters after a media briefing to announce the income distribution for its Amanah Saham Bumiputera scheme for financial year ended December 31 2011 here yesterday.
He said this when was asked to provide update on the mega project.
"Usually, it takes several months for the approvals from the City Hall. We will give ample time to City Hall to evaluate thoroughly to avoid any problems in future.
"(But) by the middle of next year, we think we can carry out several groundworks and others on the project," he said.
Earlier reports said that PNB will be undertaking the RM5 billion Warisan Merdeka development over three phases in 10 years, starting with the 100-storey tower this year.
It was reported that the development will also have a shopping complex and condominium.
The tower - touted to be the country's tallest - will cost RM2.5 billion to RM3 billion and will have gross floor space of three million sq ft and 2.2 million sq ft of net floor space.
It is scheduled to be completed in 2015.
It was also reported that PNB had set up wholly-owned unit PNB Merdeka Ventures Sdn Bhd to undertake the project.
Tengku Abdul Aziz Tengku Mahmud, formerly from Guthrie Property Development Holding Bhd and Sime Darby Property Bhd, heads the company now.
Apart from the Warisan project site, PNB's other property portfolio includes Menara PNB, PNB Darby Park, Kenanga International Building, Bangunan MAS in Kuala Lumpur, Hotel Perdana in Kota Baru and PNB Ilham Resort in Port Dickson, Negri Sembilan.
Commenting on the uncertainty of the global economy next year, Hamad Kama Piah said PNB has its own strategy to face the challenges in the global arena.
"We have been facing uncertainties almost now and then. The issue of US economy, the issue of Europe, we just cannot say it is a small thing. It is something big in the world.
"So far, we have done our best because in terms of strategy, we as a long-term player have to make sure that we are creating growth for the future.
"Our strategy is always creating value, while more or less every year we pay dividend. This is the basic principle of investing," he said.
By Business Times
IGB seeking full control of Renaissance KL
IGB Corp Bhd plans to buy up half of the five-star Renaissance Kuala Lumpur from its Hong Kong partner for RM277.5 million.
The 15-year old hotel, located at the corner of Jalan Ampang and Jalan Sultan Ismail, is the largest hotel in the capital with a 921-room inventory. It is owned by Great Union Properties Sdn Bhd, which is 50 per cent held by IGB.
IGB has offered to buy the remaining 50 per cent stake in Great Union from Stapleton Developments Ltd and Chong Kin Weng. Stapleton is a unit of Hong Kong-listed New World Development Co Ltd, while Chong is a partner in a legal firm in Malaysia.
In the year ended December 31 2010, Great Union posted earning before interest, depreciation and tax (ebita) of RM24 million, while its net assets were worth RM116.6 million.
In a statement to Bursa Malaysia, IGB said that the price was 8.5 times that of the hotel's 2010 ebita and the valuation of the hotel at RM710 million net of bank borrowings and shareholders loan.
Total cost of investment in Great Union post-acquisition will be RM503 million.
The development is interesting given that it is no secret that IGB has always been open to the idea of disposing of the hotel. In fact, it is believed that it was seeking some RM850 million for the hotel.
Nevertheless, this purchase could be in preparation to sell the entire hotel at a later stage. IGB officials were not immediately available for comment.
IGB told the exchange that with the full management control, it will be able to execute its business plans and strategies more effectively.
Initially, the hotel was divided into a four-star New World block and the five-star Renaissance block.
In 2004, in line with its global strategy to streamline hotel names, the New World name was dropped and the popular Renaissance name was adopted.
The Renaissance name became more popular and the company wanted to develop the name. The New World name is used more in China, a senior hotel manager told Business Times in a previous interview.
The management contract between the owners and Marriott International, which is operating the hotel as a Renaissance, is expected to expire in four-and-a-half years.
IGB operates hotels under the Cititel and St Giles brands. It also owns and operates Micasa All Suites as well as Boulevard Hotel and The Gardens Hotel in Mid Valley.
By Business Times
IGB buys 50% stake in hotel owner for RM277.5mil
PETALING JAYA: IGB Corp Bhd is acquiring a 50% stake in Great Union Properties Sdn Bhd (GUP) for RM277.5mil cash.
The sum comprises the proposed acquisition of 50 million RM1 shares from Stapleton Developments Ltd and Chong Kim Weng, representing a 50% equity interest in GUP for RM101.35mil and settlement of shareholder's advance of RM176.15 mil in GUP, said IGB.
GUP is the owner of the Renaissance Kuala Lumpur Hotel, which is located in the heart of Kuala Lumpur.
Upon completion of the proposed acquisition, IGB said GUP would become a wholly-owned subsidiary of IGB, adding that it was expected to contribute positively to the future financial performance of the group.
“As the controlling shareholder of GUP, IGB will have full management control and hence will be able to execute its business plans and strategies more effectively,” adding that it expected the acquisition to be completed by the first quarter of 2012.
Based on GUP's audited financial statements for the financial year ended Dec 31, 2010, IGB said GUP recorded earnings before interest, depreciation and tax of RM24mil while its net assets were RM116.6mil.
IGB said it did not foresee any new material risk factors arising from the proposed acquisition apart from various risk factors in the group's current operations.
By The Star
The sum comprises the proposed acquisition of 50 million RM1 shares from Stapleton Developments Ltd and Chong Kim Weng, representing a 50% equity interest in GUP for RM101.35mil and settlement of shareholder's advance of RM176.15 mil in GUP, said IGB.
GUP is the owner of the Renaissance Kuala Lumpur Hotel, which is located in the heart of Kuala Lumpur.
Upon completion of the proposed acquisition, IGB said GUP would become a wholly-owned subsidiary of IGB, adding that it was expected to contribute positively to the future financial performance of the group.
“As the controlling shareholder of GUP, IGB will have full management control and hence will be able to execute its business plans and strategies more effectively,” adding that it expected the acquisition to be completed by the first quarter of 2012.
Based on GUP's audited financial statements for the financial year ended Dec 31, 2010, IGB said GUP recorded earnings before interest, depreciation and tax of RM24mil while its net assets were RM116.6mil.
IGB said it did not foresee any new material risk factors arising from the proposed acquisition apart from various risk factors in the group's current operations.
By The Star
Sunway, Khazanah buy 276ha in Medini Iskandar
SUNWAY Bhd has teamed up with Khazanah Nasional Bhd to buy two plots of land in Medini Iskandar, Johor, for almost RM750 million.
Sunway said the 276.4ha, with an estimated gross development value (GDV) of RM12 billion, were acquired for RM745.3 million.
Sunway formed Semerah Cahaya Sdn Bhd with Khazanah's unit, Dayang Bunting Ventures Sdn Bhd,
"The company will be principally involved in conceptualising, managing, implementing and developing the said land," Sunway said in a statement yesterday.
Sunway currently holds 38 per cent in the joint venture but will increase it to 60 per cent within 54 months from the date of the lease purchase agreement.
It said with the acquisition, the company would have 302ha of development land in Johor, in addition to the existing land in Bukit Lenang, with estimated total GDV of RM13 billion.
Sunway chairman Tan Sri Jeffrey Cheah Fook Ling said the acquisition was in line with its strategy to continue extending its expertise in building and managing integrated cities.
"We want to replicate this expertise in Johor and develop an iconic development which will capture the local, regional and international market segments as we have done with our integrated developments," he said.
Cheah said the project was expected to contribute positively to Sunway's future earnings and cash flow by 2013.
Khazanah managing director Tan Sri Azman Mokhtar said Sunway has a proven track record as a successful master developer in Malaysia and this joint venture is an indication of the company's deepening collaborative partnerships with the private sector.
"We are confident this joint venture will further boost Medini Iskandar's progress as a catalyst development for Iskandar Malaysia," he said in the statement.
By Business Times
Sunway buys Johor land worth RM745.3mil
KUALA LUMPUR: Sunway Bhd has expanded its landbank in Johor with the acquisition of two parcels of leased land worth RM745.3mil in Medini Iskandar via a joint venture vehicle with Khazanah Nasional Bhd.
The two parcels, which are adjacent to each other, total about 691 acres and has an estimated gross development value (GDV) of RM12bil.
The newly acquired land known as Zone F Medini will boost Sunway's landbank by 30% from the previous 2,145 acres, while the proposed development will boost the company's current GDV to RM32bil,” Sunway said in a statement yesterday.
“With the acquisition, Sunway will have 755 acres of development land in Johor, in addition to the existing land at Bukit Lenang, with an estimated total GDV of RM13bil.”
Zone F Medini is strategically located in the heart of Iskandar Malaysia. It is about 10 minutes from Singapore via the Second Link Expressway and 25 minutes from the Senai International Airport.
Also in the vicinity are Legoland Malaysia and Pinewood Iskandar Malaysia Studios, which are expected to be completed by 2012 and 2013 respectively, Edu City, Kota Iskandar and the International Financial District, the company said.
This is Sunway's largest acquisition after the merger of the businesses of two public-listed companies, Sunway Holdings and Sunway City in August which resulted in the merged entity becoming one of the top five property-construction companies listed on Bursa Malaysia.
Sunway also announced a joint venture (JV) with Dayang Bunting Ventures Sdn Bhd, a wholly-owned subsidiary of Khazanah, to form Semerah Cahaya Sdn Bhd. which will principally be involved in conceptualising, managing, implementing and developing the said land.
Sunway currently holds 38% in the JV but will increase its holdings to 60% within 54 months from the date of the lease purchase agreement.
Commenting on the successful acquisition, Sunway founder and chairman Tan Sri Dr Jeffrey Cheah said the acquisition was in line with the company's strategy to continue extending its expertise in building and managing integrated cities, as exemplified in its integrated developments in Bandar Sunway, Sunway City Ipoh, Sunway Velocity and Sunway Damansara.
“We want to replicate this expertise in Johor and develop an iconic development which will capture the local, regional and international market segments as we have done with our integrated developments.
“Together with Khazanah, we are confident that we will be able to successfully establish a strong foothold in the state in the near future,” said Cheah, adding that the project was expected to contribute positively to Sunway's future earnings and cash flow by 2013.
Khazanah managing director Tan Sri Azman Mokhtar said he welcomed Sunway as the latest major Malaysian developer to participate in Iskandar Malaysia.
“Sunway has a proven track record as a successful master developer in Malaysia and this JV is an indication of Khazanah's deepening collaborative partnerships with the private sector. We are confident this joint venture will further boost Medini Iskandar's progress as a catalyst development for Iskandar Malaysia.”
Sunway has established its presence in Iskandar Malaysia through its construction division which is undertaking three major construction jobs in Iskandar Malaysia, including Legoland, Pinewood Iskandar Malaysia Studios and the Central Utilities Facility at the Bio-XCell biotechnology park.
By The Star
The two parcels, which are adjacent to each other, total about 691 acres and has an estimated gross development value (GDV) of RM12bil.
The newly acquired land known as Zone F Medini will boost Sunway's landbank by 30% from the previous 2,145 acres, while the proposed development will boost the company's current GDV to RM32bil,” Sunway said in a statement yesterday.
“With the acquisition, Sunway will have 755 acres of development land in Johor, in addition to the existing land at Bukit Lenang, with an estimated total GDV of RM13bil.”
Zone F Medini is strategically located in the heart of Iskandar Malaysia. It is about 10 minutes from Singapore via the Second Link Expressway and 25 minutes from the Senai International Airport.
Also in the vicinity are Legoland Malaysia and Pinewood Iskandar Malaysia Studios, which are expected to be completed by 2012 and 2013 respectively, Edu City, Kota Iskandar and the International Financial District, the company said.
This is Sunway's largest acquisition after the merger of the businesses of two public-listed companies, Sunway Holdings and Sunway City in August which resulted in the merged entity becoming one of the top five property-construction companies listed on Bursa Malaysia.
Sunway also announced a joint venture (JV) with Dayang Bunting Ventures Sdn Bhd, a wholly-owned subsidiary of Khazanah, to form Semerah Cahaya Sdn Bhd. which will principally be involved in conceptualising, managing, implementing and developing the said land.
Sunway currently holds 38% in the JV but will increase its holdings to 60% within 54 months from the date of the lease purchase agreement.
Commenting on the successful acquisition, Sunway founder and chairman Tan Sri Dr Jeffrey Cheah said the acquisition was in line with the company's strategy to continue extending its expertise in building and managing integrated cities, as exemplified in its integrated developments in Bandar Sunway, Sunway City Ipoh, Sunway Velocity and Sunway Damansara.
“We want to replicate this expertise in Johor and develop an iconic development which will capture the local, regional and international market segments as we have done with our integrated developments.
“Together with Khazanah, we are confident that we will be able to successfully establish a strong foothold in the state in the near future,” said Cheah, adding that the project was expected to contribute positively to Sunway's future earnings and cash flow by 2013.
Khazanah managing director Tan Sri Azman Mokhtar said he welcomed Sunway as the latest major Malaysian developer to participate in Iskandar Malaysia.
“Sunway has a proven track record as a successful master developer in Malaysia and this JV is an indication of Khazanah's deepening collaborative partnerships with the private sector. We are confident this joint venture will further boost Medini Iskandar's progress as a catalyst development for Iskandar Malaysia.”
Sunway has established its presence in Iskandar Malaysia through its construction division which is undertaking three major construction jobs in Iskandar Malaysia, including Legoland, Pinewood Iskandar Malaysia Studios and the Central Utilities Facility at the Bio-XCell biotechnology park.
By The Star
'Sunway's Iskandar entry a positive move'
Sunway Bhd's entry into Iskandar Malaysia is a positive move given the cheap price of land acquisition, prime location and existing infrastructure in place.
HwangDBS Vickers Research, in a research note today, said the land acquisition of RM25 per square foot was cheap compared with recent land sale at RM38 per square foot.
It said with an implied pricing for residential portion at RM400 per square foot and commercial land 15 to 20 per cent higher, completion of other major projects there next year would enhance Sunway's pricing power.
"Other benefits include favourable tax incentives, no Bumiputera and low-cost housing content," it said.
Meanwhile, OSK Research said Sunway's entry into Iskandar Malaysia would enable the company to build its presence in the region and tap into the abundant growth opportunities offered by the property market there.
Both research houses maintained a "buy" call on Sunway with HwangDBS Vickers maintaining its target price at RM3.30 per share while OSK Research's fair value was unchanged at RM3.31 per share.
By Bernama
HwangDBS Vickers Research, in a research note today, said the land acquisition of RM25 per square foot was cheap compared with recent land sale at RM38 per square foot.
It said with an implied pricing for residential portion at RM400 per square foot and commercial land 15 to 20 per cent higher, completion of other major projects there next year would enhance Sunway's pricing power.
"Other benefits include favourable tax incentives, no Bumiputera and low-cost housing content," it said.
Meanwhile, OSK Research said Sunway's entry into Iskandar Malaysia would enable the company to build its presence in the region and tap into the abundant growth opportunities offered by the property market there.
Both research houses maintained a "buy" call on Sunway with HwangDBS Vickers maintaining its target price at RM3.30 per share while OSK Research's fair value was unchanged at RM3.31 per share.
By Bernama
Digital masterplan for KLIFD
KUALA LUMPUR: 1Malaysia Development Bhd (1MDB) is developing a digital masterplan for a digitally smart Kuala Lumpur International Financial District (KLIFD).
1MDB, which is developing US$8 billion (RM25 billion) KLIFD with its Abu Dhabi joint-venture partner Mubadala Development Corp, has gathered a global team of IT experts and digital planners led by Accenture Solutions Sdn Bhd to draw up the masterplan.
"We aim for KLIFD to be a leading financial district with state-of-the-art connectivity," Datuk Azmar Talib, deputy chief executive officer of 1MDB Real Estate Sdn Bhd, a subsidiary of 1MDB, said in a statement.
The KLIFD is currently at the master-planning phase and is on track to start construction beginning of next year.
1MDB had appointed Akitek Jururancang (Malaysia) Sdn Bhd and its international partner Machado Silvetti and Associates to help work on the KLFID masterplan.
By Business Times
1MDB, which is developing US$8 billion (RM25 billion) KLIFD with its Abu Dhabi joint-venture partner Mubadala Development Corp, has gathered a global team of IT experts and digital planners led by Accenture Solutions Sdn Bhd to draw up the masterplan.
"We aim for KLIFD to be a leading financial district with state-of-the-art connectivity," Datuk Azmar Talib, deputy chief executive officer of 1MDB Real Estate Sdn Bhd, a subsidiary of 1MDB, said in a statement.
The KLIFD is currently at the master-planning phase and is on track to start construction beginning of next year.
1MDB had appointed Akitek Jururancang (Malaysia) Sdn Bhd and its international partner Machado Silvetti and Associates to help work on the KLFID masterplan.
By Business Times
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