The Securities Commission (SC) has relaxed foreign ownership rules for property trust managers, among others, as it seeks to spur the industry further.
Under the revised Guidelines for Real Estate Investment Trusts, foreigners can now hold up to 70 per cent of a REIT management company, from 49 per cent since 2005.
The revised guidelines, which came into effect yesterday, also provide greater flexibility for REIT managers to manage their portfolio mix.
"Following the measures announced in Budget 2008 to encourage foreign REIT management companies to set up operations in Malaysia and list their REIT on Bursa Malaysia, the REITs guidelines now allow a portion of a REIT's portfolio to consist of real estates that it does not wholly own or have a majority ownership.
"REIT managers are also able to raise funds faster for acquisitions or capital expenditure purposes," the SC said in a statement.
The managers can seek a general mandate from unitholders to issue up to 20 per cent of its fund size. Previously, the issuance of any number of new units required REIT managers to hold meetings to seek unitholders' specific approval.
Additionally, the SC's prior approval on real estate valuation is now only required where acquisition of a real estate is financed, or re-financed within one year, through the issuance of new units.
In all other circumstances, the SC will conduct a post-review of the valuations to ensure that they are reasonable and well-supported.
To strengthen investor protection, REIT managers must appoint a designated person responsible for compliance.
To further safeguard investor interest, REITs will not be allowed to buy non-income generating real estates such as vacant land, and may only buy
property that is under construction or uncompleted real estates up to 10 per cent of its total asset value.
It also introduced related party transaction rules and trustees now have a greater role to play in such deals.
Additionally, the revised REIT guidelines require principal advisers to comply with the guidelines on principal advisers for corporate proposals. These specify who can act as principal advisers for the submission of corporate proposals to the SC, in addition to the required competency standards for principal advisers when dealing with corporate proposals involving initial public offers of REITs on Bursa Malaysia.
The REIT guidelines also make reference to the need to comply with the guidelines on due diligence conduct for corporate proposals which sets out the SC's expectations on issuers, advisers and experts in their conduct of due diligence to ensure that investors can make informed investment decisions based on sound and accurate information.
By New Straits Times
Friday, August 22, 2008
IOI Corp wins bid for Menara Citibank?
KUALA LUMPUR: IOI Corporation Bhd is believed to have succeeded in its bid to purchase Menara Citibank from Citigroup-associated Inverfin Sdn Bhd. Sources said IOI Corp would buy the building for RM800 million after outbidding two others.
While details weren't available at press time on the identity of the other two bidders, a local media report last week said they included a "private equity fund and a Korean fund". The building would likely fetch between RM1,000 and RM1,200 per sq ft, the news report said.
Inverfin's major shareholders are Citigroup's unit Menara Citi Holding Company Sdn Bhd (50% stake), Singapore property developer CapitaLand Ltd (30%) and Amsteel Sdn Bhd (20%).
The CapitaLand website stated that the 50-storey freehold Menara Citibank had a net lettable area of 69,379 square metres (746,789 sq ft) as at Dec 31 last year.
According to Malaysian Rating Corporation Bhd's (MARC) Structured Finance Quarterly Ratings Actions, Reviews and Outlooks - 3Q07, Menara Citibank was at that time 99% occupied with average occupancy rates in excess of 90% since 2002.
Using a discounted cash flow valuation approach, MARC said its assessed capital value for the property was RM398.7 million, a 13% downward adjustment from its market value.
"The strong occupancy levels and increases in rental rates are reflected in the property's average operating profit of about RM28.1 million per annum over the past five years," MARC said in the report.
The ratings agency also said in its report that Citibank Bhd was occupying 42.7% of the total net lettable area of the building. It is understood that Citigroup will retain its Malaysian branch offices at Menara Citibank and will lease the space from the new owner.
Inverfin's principle activities are limited to property investment and office management of its sole property Menara Citibank, according to the MARC report.
By The EDGE Malaysia (by Sharmila Ganapathy)
While details weren't available at press time on the identity of the other two bidders, a local media report last week said they included a "private equity fund and a Korean fund". The building would likely fetch between RM1,000 and RM1,200 per sq ft, the news report said.
Inverfin's major shareholders are Citigroup's unit Menara Citi Holding Company Sdn Bhd (50% stake), Singapore property developer CapitaLand Ltd (30%) and Amsteel Sdn Bhd (20%).
The CapitaLand website stated that the 50-storey freehold Menara Citibank had a net lettable area of 69,379 square metres (746,789 sq ft) as at Dec 31 last year.
According to Malaysian Rating Corporation Bhd's (MARC) Structured Finance Quarterly Ratings Actions, Reviews and Outlooks - 3Q07, Menara Citibank was at that time 99% occupied with average occupancy rates in excess of 90% since 2002.
Using a discounted cash flow valuation approach, MARC said its assessed capital value for the property was RM398.7 million, a 13% downward adjustment from its market value.
"The strong occupancy levels and increases in rental rates are reflected in the property's average operating profit of about RM28.1 million per annum over the past five years," MARC said in the report.
The ratings agency also said in its report that Citibank Bhd was occupying 42.7% of the total net lettable area of the building. It is understood that Citigroup will retain its Malaysian branch offices at Menara Citibank and will lease the space from the new owner.
Inverfin's principle activities are limited to property investment and office management of its sole property Menara Citibank, according to the MARC report.
By The EDGE Malaysia (by Sharmila Ganapathy)
Healthy Living
The Kiaraville gymnasium for condo residents, is equipped with high-end Technogym equipment from Italy, an aerobic room with special lighting and sound system.
The gymnasium is about 5,000sq ft and even has space for two private training rooms.
One of the directors of the property development company, who declined to be named, is a fitness enthusiast who wanted the best facilities available.
The gymnasium is about 5,000sq ft and even has space for two private training rooms.
Residents can make use of the common gym facilities within the operating hours from 7am to 10pm. But the private rooms are meant for residents who prefer the privacy of working out behind closed doors under a private instructor.
Professional fitness centre operator Candi Soo has been engaged to run the private rooms which are equipped with its own set of Technoqym equipment. Fees range from RM70 to RM100 per hour.
Besides personal training, Soo also offers fitness classes such as Gymstickin, Barbell Matrix and aerobic classes. But the more adventurous can opt for:
* The Masala - an energetic group exercise routine based on the latest music and movements from Bollywood and Bhangra dance
* Yogataal – combining the basics of modern yoga practice with contemporary world music
* Marguerita – based on the music and flamboyant movements of carnival-style, contemporary Latin dance For residents with young children, they can leave them at the childcare centre near the gymnasium while they exercise. The centre is designed as a nursery and therapy centr ,in a secure environment. Baby-sitting services have been planned.
This nursery, which is only for the use of residents, spans approximately 1,400sq ft and is equipped with facilities under the advice of childcare specialist Jan Deboer.
Pools
Pool facilities available at Kiaraville include a 32-meter swimming pool as well as a linear pool, children’s wading pool and a pool only for adults. Residents can also relax on German-made Rausch outdoor furniture around the pool deck.
Other sports facilities include tennis courts and squash courts, as well as sauna rooms for male and female users.
Residents who want to throw parties can make use of the barbecue facilities available. Or they can use the function hall for their own private events.
The condo development will also have a convenience store, salon, laundry service and cafeteria.
Well-known food and beverage outlets are within walking distance from the nearby Solaris commercial centre which includes the Cold Storage supermarket.
Generally, Kiaraville is well connected to other shopping areas such as the Hartamas Shopping Centre, 1Utama mall, The Curve and IKEA as well as the soon-to-be-completed One Mont’ Kiara mall.
The Mont’ Kiara neighbourhood is also served by three international schools:
* Garden International School
* Mont’ Kiara International School
* French International School
By The Star
The gymnasium is about 5,000sq ft and even has space for two private training rooms.
One of the directors of the property development company, who declined to be named, is a fitness enthusiast who wanted the best facilities available.
The gymnasium is about 5,000sq ft and even has space for two private training rooms.
Residents can make use of the common gym facilities within the operating hours from 7am to 10pm. But the private rooms are meant for residents who prefer the privacy of working out behind closed doors under a private instructor.
Professional fitness centre operator Candi Soo has been engaged to run the private rooms which are equipped with its own set of Technoqym equipment. Fees range from RM70 to RM100 per hour.
Besides personal training, Soo also offers fitness classes such as Gymstickin, Barbell Matrix and aerobic classes. But the more adventurous can opt for:
* The Masala - an energetic group exercise routine based on the latest music and movements from Bollywood and Bhangra dance
* Yogataal – combining the basics of modern yoga practice with contemporary world music
* Marguerita – based on the music and flamboyant movements of carnival-style, contemporary Latin dance For residents with young children, they can leave them at the childcare centre near the gymnasium while they exercise. The centre is designed as a nursery and therapy centr ,in a secure environment. Baby-sitting services have been planned.
This nursery, which is only for the use of residents, spans approximately 1,400sq ft and is equipped with facilities under the advice of childcare specialist Jan Deboer.
Pools
Pool facilities available at Kiaraville include a 32-meter swimming pool as well as a linear pool, children’s wading pool and a pool only for adults. Residents can also relax on German-made Rausch outdoor furniture around the pool deck.
Other sports facilities include tennis courts and squash courts, as well as sauna rooms for male and female users.
Residents who want to throw parties can make use of the barbecue facilities available. Or they can use the function hall for their own private events.
The condo development will also have a convenience store, salon, laundry service and cafeteria.
Well-known food and beverage outlets are within walking distance from the nearby Solaris commercial centre which includes the Cold Storage supermarket.
Generally, Kiaraville is well connected to other shopping areas such as the Hartamas Shopping Centre, 1Utama mall, The Curve and IKEA as well as the soon-to-be-completed One Mont’ Kiara mall.
The Mont’ Kiara neighbourhood is also served by three international schools:
* Garden International School
* Mont’ Kiara International School
* French International School
By The Star
Takaful Malaysia eyes 33pc share of govt loan scheme
SYARIKAT Takaful Malaysia Bhd (STMB) aims to capture one-third market share of the government housing loan scheme for the financial year ending June 30 2009.
STMB group managing director Hassan Kamil said up to June 30 2008, STMB had collected about RM25 million to RM30 million in premium for the scheme, for a 20 per cent share.
Yesterday, the company opened its new Treasury Business Centre to cater for the government employees who took housing loan under the scheme at the Ministry of Finance, Putrajaya.
To widen its reach to customers, Hassan said, the company is undertaking an initiative to set up a takaful "desk" within Bank Islam's branches nationwide.
STMB will also sell Bank Islam products in all their branches. STMB and Bank Islam are sister companies under BIMB Holdings Bhd.
STMB hopes to finalise the consolidation of its branches with those of Bank Islam Malaysia Bhd's by year-end.
By New Straits Times (by Rupinder Singh)
STMB group managing director Hassan Kamil said up to June 30 2008, STMB had collected about RM25 million to RM30 million in premium for the scheme, for a 20 per cent share.
Yesterday, the company opened its new Treasury Business Centre to cater for the government employees who took housing loan under the scheme at the Ministry of Finance, Putrajaya.
To widen its reach to customers, Hassan said, the company is undertaking an initiative to set up a takaful "desk" within Bank Islam's branches nationwide.
STMB will also sell Bank Islam products in all their branches. STMB and Bank Islam are sister companies under BIMB Holdings Bhd.
STMB hopes to finalise the consolidation of its branches with those of Bank Islam Malaysia Bhd's by year-end.
By New Straits Times (by Rupinder Singh)
SMEs told to tap HK, China building sector
MALAYSIAN small and medium enterprises (SMEs) should tap into Hong Kong and China's building and construction industry, which is recording one of the world's highest rates of growth, says the Hong Kong Trade Development Council (HKTDC).
"Hong Kong serves as an important and convenient entry point into Greater China, minus Taiwan, for Malaysian SMEs in the building industry," said HKTDC assistant executive director Raymond Yip in a statement issued on Tuesday.
"In addition, the implementation of the mainland and Hong Kong's Closer Economic Partnership Arrangement (Cepa) will enhance Hong Kong's importance for Malaysians targeting China.
"Under Cepa, businesses can gain a foothold in China while Chinese businesses see Hong Kong as a perfect springboard for mainland enterprises to reach out to the global market," Yip said as Hong Kong prepares to host the Third Hong Kong International Building and Decoration Materials and Hardware Fair from October 28 to October 31.
Cepa is the first trade agreement concluded by China and Hong Kong, with its main text signed in June 2003 while implementation takes effect from January 2008.
Organised by HKTDC and CIEC Exhibition Co (HK) Ltd, the fair will see both Hong Kong International Building Materials & Construction Equipment Fair and equally popular Hong Kong International Hardware & Home Improvement Fair run concurrently.
The trade shows have become an effective sourcing platform for both buyers and sellers targeting Hong Kong and China, with both fairs attracting more than 20,000 buyers from 113 countries and regions last year.
This year, the merged fair is expected to bring 300 quality exhibitors from around the world.
By New Straits Times
"Hong Kong serves as an important and convenient entry point into Greater China, minus Taiwan, for Malaysian SMEs in the building industry," said HKTDC assistant executive director Raymond Yip in a statement issued on Tuesday.
"In addition, the implementation of the mainland and Hong Kong's Closer Economic Partnership Arrangement (Cepa) will enhance Hong Kong's importance for Malaysians targeting China.
"Under Cepa, businesses can gain a foothold in China while Chinese businesses see Hong Kong as a perfect springboard for mainland enterprises to reach out to the global market," Yip said as Hong Kong prepares to host the Third Hong Kong International Building and Decoration Materials and Hardware Fair from October 28 to October 31.
Cepa is the first trade agreement concluded by China and Hong Kong, with its main text signed in June 2003 while implementation takes effect from January 2008.
Organised by HKTDC and CIEC Exhibition Co (HK) Ltd, the fair will see both Hong Kong International Building Materials & Construction Equipment Fair and equally popular Hong Kong International Hardware & Home Improvement Fair run concurrently.
The trade shows have become an effective sourcing platform for both buyers and sellers targeting Hong Kong and China, with both fairs attracting more than 20,000 buyers from 113 countries and regions last year.
This year, the merged fair is expected to bring 300 quality exhibitors from around the world.
By New Straits Times
Thursday, August 21, 2008
CapitaLand applies to list RM2bil REIT
KUALA LUMPUR: Singapore-based CapitaLand Ltd has submitted its application to list its RM2bil real estate investment trust (REIT) on Bursa Malaysia.
However, the timing of the listing would depend on market conditions, said chief investment officer Kee Teck Koon.
From left: CapitaLand Commercial Ltd CEO Wen Khai Meng, Quill Group of Companies, executive director Dato' Michael Ong, MD Dato' Jennifer Low and CapitaLand Ltd, CIO Kee Teck Koon laying cement to the top of Tower D at KL Sentral on Wednesday. - Starpic by Victor K.K. Ng
“We have just submitted the application and expect to obtain the approval by the fourth quarter of this year,” he told reporters after the topping-up ceremony of Tower D in Lot J, KL Sentral, yesterday.
Tower D is being developed by Quill Realty Sdn Bhd, which is 60% owned by Quill and 40% owned by Malaysia Commercial Development Fund (MCDF). MCDF is managed by MCDF Management Pte Ltd, an indirect wholly-owned subsidiary of CapitaLand, with Aseambankers Malaysia Bhd as principal adviser.
Kee said the company hoped to list the REIT before year-end but it would hinge on the performance of the local capital market.
On the possibility of listing its REIT in other countries due to the lacklustre Malaysian market, Kee said the company was very clear on wanting to list it in Malaysia.
Assets to be injected into the trust will include Gurney Plaza in Penang, Mines Shopping Fair in Seri Kembangan, and Sungai Wang Plaza in Kuala Lumpur.
Kee said the company was always on the lookout for high-value commercial properties in Kuala Lumpur but there was currently nothing concrete.
Quill Capita Trust chief executive officer Chan Say Yeong said the demand for commercial properties was encouraging due to the limited supply of commercial assets in Kuala Lumpur.
“Generally the demand comes from oil and gas, telecommunications and multinational companies as well as the service sector.
“The rental growth rates in the Kuala Lumpur City Centre and KL Sentral areas were between 15% and 20% for the past few years,” he added.
Quill Group of Companies executive director Datuk Michael Ong said Tower D - a 29-storey office tower with a six-storey podium - would be ready for occupancy in March. Of its total net lettable space of 355,323 sq ft, 65% has been taken up by tenants so far.
Ong said the average monthly rental in KL Sentral was between RM6 and RM7 per sq ft while the latest property transaction price in KL Sentral was RM1,000 per sq ft.
By The Star
CapitaLand targets RM2b REIT listing by Dec
CAPITALAND Ltd, Southeast Asia's largest real estate company, plans to list a RM2 billion property trust of Malaysian shopping malls on Bursa Malaysia by the end of the year.
It submitted the request to the Securities Commission recently and expects an approval before October.
"The reason why we have done all the preparation is to do it (list it) before the end of the year. Of course, at the end of the day, it is all dependent on the market," said CapitaLand chief investment officer Kee Teck Koon.
Currently, its retail assets include Sungei Wang Plaza in Kuala Lumpur, Gurney Plaza in Penang and Mines Shopping Fair in Seri Kembangan, Selangor. In June, it bought 62 per cent of Sungei Wang Plaza's retail area for RM595 million.
Kee was speaking to the media after the topping-up ceremony for the Tower D project in KL Sentral, Kuala Lumpur.
The commercial building, located next to Sooka Sentral and opposite the Sentral rail station, has seen strong tenant interest.
"So far, about 65 per cent of its total net lettable space of 355,323 sq ft has been taken up, mainly by foreign companies. We expect it to be fully tenanted by end of this year," said Quill Group of Companies director Datuk Michael Ong.
Construction is scheduled to be completed in the first quarter of next year.
It expects demand for top-grade commercial space to remain robust as demand is stronger than supply, mainly in areas near KLCC and in Sentral.
"The Malaysian real estate market is undergoing a stage of rapid growth following the country's healthy economic performance over the past few years," said CapitaLand Commercial Ltd chief executive officer Wen Khai Meng.
Tower D is developed by Quill Realty Sdn Bhd, which is 60 per cent owned by Quill and 40 per cent by Malaysia Commercial Development Fund (MCDF).
MCDF is managed by MCDF Management Pte Ltd, an indirect wholly-owned unit of CapitaLand with Aseambankers Malaysia Bhd as its main adviser.
By New Straits Times (by Goh Thean Eu)
It submitted the request to the Securities Commission recently and expects an approval before October.
"The reason why we have done all the preparation is to do it (list it) before the end of the year. Of course, at the end of the day, it is all dependent on the market," said CapitaLand chief investment officer Kee Teck Koon.
Currently, its retail assets include Sungei Wang Plaza in Kuala Lumpur, Gurney Plaza in Penang and Mines Shopping Fair in Seri Kembangan, Selangor. In June, it bought 62 per cent of Sungei Wang Plaza's retail area for RM595 million.
Kee was speaking to the media after the topping-up ceremony for the Tower D project in KL Sentral, Kuala Lumpur.
The commercial building, located next to Sooka Sentral and opposite the Sentral rail station, has seen strong tenant interest.
"So far, about 65 per cent of its total net lettable space of 355,323 sq ft has been taken up, mainly by foreign companies. We expect it to be fully tenanted by end of this year," said Quill Group of Companies director Datuk Michael Ong.
Construction is scheduled to be completed in the first quarter of next year.
It expects demand for top-grade commercial space to remain robust as demand is stronger than supply, mainly in areas near KLCC and in Sentral.
"The Malaysian real estate market is undergoing a stage of rapid growth following the country's healthy economic performance over the past few years," said CapitaLand Commercial Ltd chief executive officer Wen Khai Meng.
Tower D is developed by Quill Realty Sdn Bhd, which is 60 per cent owned by Quill and 40 per cent by Malaysia Commercial Development Fund (MCDF).
MCDF is managed by MCDF Management Pte Ltd, an indirect wholly-owned unit of CapitaLand with Aseambankers Malaysia Bhd as its main adviser.
By New Straits Times (by Goh Thean Eu)
TH Properties to invest RM100m in Bandar Enstek this year
KUALA LUMPUR: TH Properties Sdn Bhd will be investing another RM100 million in infrastructural development at its RM9.2 billion Bandar Enstek project in Negeri Sembilan, said its chief executive officer Zaharuddin Saidon.
"We are now opening up our techpark@enstek 2 and we need to put in place the infrastructure so we are going to spend about RM100 million this year to provide the necessary construction," he said after a memorandum of agreement (MoA) signing ceremony between TH Properties and Bank Islam Malaysia Bhd here yesterday.
TH Properties bought the 5,116-acre land for about RM800 million. The gross development value of the project is RM9.2 billion, while the gross development cost is RM7.4 billion. Bandar Enstek is expected to be completed in 2025.
Pursuant to the MoA with Bank Islam, prospective buyers will be able to secure financing packages of up to 100% for timur@enstek homes exceeding RM250,000 and may be exempted from making payments during the construction, or a grace period of up to three years.
In addition, Bank Islam also introduced a "two-month payment holiday" scheme where customers could skip paying instalments for November and December.
Bank Islam managing director Datuk Zukri Samat said it had a proper credit control system and not everyone would be eligible for the 100% financing.
To date, more than 24 units of timur@enstek's Matahari A&B bungalows had been sold. Seventy units of Bayu single-storey link homes were under construction for completion by January, said Zaharuddin.
He also said that the Rimbun superlink homes were launched in April and 40% of them had been taken up. "By the end of the year, we expect to be able to sell all the 100 units."
By The EDGE Malaysia (by Lu Jing Shia)
"We are now opening up our techpark@enstek 2 and we need to put in place the infrastructure so we are going to spend about RM100 million this year to provide the necessary construction," he said after a memorandum of agreement (MoA) signing ceremony between TH Properties and Bank Islam Malaysia Bhd here yesterday.
TH Properties bought the 5,116-acre land for about RM800 million. The gross development value of the project is RM9.2 billion, while the gross development cost is RM7.4 billion. Bandar Enstek is expected to be completed in 2025.
Pursuant to the MoA with Bank Islam, prospective buyers will be able to secure financing packages of up to 100% for timur@enstek homes exceeding RM250,000 and may be exempted from making payments during the construction, or a grace period of up to three years.
In addition, Bank Islam also introduced a "two-month payment holiday" scheme where customers could skip paying instalments for November and December.
Bank Islam managing director Datuk Zukri Samat said it had a proper credit control system and not everyone would be eligible for the 100% financing.
To date, more than 24 units of timur@enstek's Matahari A&B bungalows had been sold. Seventy units of Bayu single-storey link homes were under construction for completion by January, said Zaharuddin.
He also said that the Rimbun superlink homes were launched in April and 40% of them had been taken up. "By the end of the year, we expect to be able to sell all the 100 units."
By The EDGE Malaysia (by Lu Jing Shia)
TH Properties, Bank Islam team up on loan scheme
TH PROPERTIES Sdn Bhd, the developer of Bandar Enstek, has partnered Bank Islam Malaysia Bhd on a loan package which includes financing of up to 100 per cent and waiver of payments during the construction period.
"We decided to be proactive, and come up with a 'no-payment during construction' scheme for home financing in anticipation of the impact of rising costs of living on disposable income," Bank Islam managing director Datuk Zukri Samat said in Kuala Lumpur yesterday.
With the introduction of this package, buyers will have the opportunity to buy a house almost without having to pay a single sen until the house is ready for occupation.
Zukri said despite the flexibility that Bank Islam offers, the bank will make sure that it does not compromise on credit security.
"We sincerely hope that these features will provide customers peace of mind and relieve some of their burden during this challenging period," Zukri said.
Bank Islam also offers a two-month payment holiday scheme under which customers have the option to skip instalments for November and December every year.
Meanwhile, TH Properties chief executive officer Zaharuddin Saidon said it will go ahead with its planned RM100 million worth of property launches this year despite escalating costs of building materials.
"We know that other developers will hesitate, but we are moving full steam ahead. We are taking this opportunity to launch our products as others delay theirs," Zaharuddin said.
He said the company is working on various measures to reduce costs to maintain its prices.
By New Straits Times (by Presenna Nambiar)
"We decided to be proactive, and come up with a 'no-payment during construction' scheme for home financing in anticipation of the impact of rising costs of living on disposable income," Bank Islam managing director Datuk Zukri Samat said in Kuala Lumpur yesterday.
With the introduction of this package, buyers will have the opportunity to buy a house almost without having to pay a single sen until the house is ready for occupation.
Zukri said despite the flexibility that Bank Islam offers, the bank will make sure that it does not compromise on credit security.
"We sincerely hope that these features will provide customers peace of mind and relieve some of their burden during this challenging period," Zukri said.
Bank Islam also offers a two-month payment holiday scheme under which customers have the option to skip instalments for November and December every year.
Meanwhile, TH Properties chief executive officer Zaharuddin Saidon said it will go ahead with its planned RM100 million worth of property launches this year despite escalating costs of building materials.
"We know that other developers will hesitate, but we are moving full steam ahead. We are taking this opportunity to launch our products as others delay theirs," Zaharuddin said.
He said the company is working on various measures to reduce costs to maintain its prices.
By New Straits Times (by Presenna Nambiar)
i-City to provide smart banking
PETALING JAYA: I-Bhd, the developer of the 72-acre RM2bil freehold i-City project in Shah Alam’s Section 7, signed a memorandum of understanding with AmBank (M) Bhd yesterday for the provision of smart banking services including full e-banking facilities.
I-Bhd said in a statement other services being considered were wireless phone banking, wireless automated teller machines and new electronic financial services that would serve as prototype before being rolled out to other branches.
“AmBank selected i-City as a pilot site for this purpose because of i-City’s capability in supporting state-of-the-art technology,” it said, adding that the AmBank branch was expected to commence operations in the fourth quarter.
By The Star
I-Bhd said in a statement other services being considered were wireless phone banking, wireless automated teller machines and new electronic financial services that would serve as prototype before being rolled out to other branches.
“AmBank selected i-City as a pilot site for this purpose because of i-City’s capability in supporting state-of-the-art technology,” it said, adding that the AmBank branch was expected to commence operations in the fourth quarter.
By The Star
iProperty.com acquires Taiwan portal
The iProperty.com Group, owner of Asia’s leading network of property portals and Malaysia’s No. 1 real estate website, has acquired Taiwan’s online property portal, VRHouse.com.tw.
In a statement yesterday, iProperty said the portal, owned by Info-Portal Tech International Co Ltd, was Chinese language-based and ranked No. 1 in terms of user traffic, developer clients and revenue.
“In total, over 225,000 users view and use VRHouse’s property listings and services monthly,” it said.
iProperty’s group chairman Patrick Grove said the company’s experience in Malaysia, Hong Kong and the Philippines would allow it to bring a strong value-add proposition to VRHouse.
“We also look forward to working with the dynamic, entrepreneurial local team to further dominate the Taiwan market and the region at large,” he said.
Grove said the acquisition would complete the company’s ownership of market-leading property portals across the Chinese diaspora in the region. “We are further excited by the recent political events and strengthening of ties with China which is expected to lead to a significant increase in mainland Chinese investing in Taiwanese property.
“We plan to position VRHouse as a key media property that facilitates this process,” he said.
Grove said the group would continue to seek further strategic acquisitions of leading property portals and complementary businesses throughout regional markets.
By Bernama
In a statement yesterday, iProperty said the portal, owned by Info-Portal Tech International Co Ltd, was Chinese language-based and ranked No. 1 in terms of user traffic, developer clients and revenue.
“In total, over 225,000 users view and use VRHouse’s property listings and services monthly,” it said.
iProperty’s group chairman Patrick Grove said the company’s experience in Malaysia, Hong Kong and the Philippines would allow it to bring a strong value-add proposition to VRHouse.
“We also look forward to working with the dynamic, entrepreneurial local team to further dominate the Taiwan market and the region at large,” he said.
Grove said the acquisition would complete the company’s ownership of market-leading property portals across the Chinese diaspora in the region. “We are further excited by the recent political events and strengthening of ties with China which is expected to lead to a significant increase in mainland Chinese investing in Taiwanese property.
“We plan to position VRHouse as a key media property that facilitates this process,” he said.
Grove said the group would continue to seek further strategic acquisitions of leading property portals and complementary businesses throughout regional markets.
By Bernama
MP Corp and MoF unit sign pact on Johor township
KUALA LUMPUR: Property firm Malaysia Pacific Corp Bhd (MP Corp) has teamed up with Amanah Raya Bhd (ARB) to develop 276ha in Iskandar Malaysia, Johor, into a RM6.6bil self-contained township called LakeHill Resort City.
“The gross development cost of the project is estimated at RM4.2bil and is anticipated to generate development profits of RM2.4bil with an estimated completion time by 2015,’’ MP Corp told Bursa Malaysia yesterday. ARB is a company under Minister of Finance Inc (MoF).
MP Corp said it expected to raise development financing and construction bridging loan of RM200mil to fast-track the development. Additional funds would be raised via cashflow and profits derived from sales and “subsidiary joint venture” of the 22 parcels of approved projects for the township.
ARB and MP Corp have “agreed that a further option to speed up the project is by way of public listing on Bursa Malaysia of the developer within three to four years.”
“LakeHill Resort City is targeted to be the home of the trading, distribution, entertainment, shopping and tourism hub of Iskandar Malaysia to boost investor and economic activities for Johor and the country,’’ MP Corp said in the statement.
The centrepiece of the development will be the Asia Pacific Trade & Expo City (Aptec), a four million gross sq ft permanent trade and expo city, touted to be the largest of its kind in Asia.
A total of 9,116 residential units and 1,022 commercial units are being planned at the township.
MP Corp announced that it would undertake an internal restructuring to facilitate the joint venture with ARB involving the sale of its 276ha land bank to a special purpose vehicle called Oriental Pearl City Properties Sdn Bhd for RM135.3mil.
An independent valuer, on July 29, ascribed a fair market value of RM450mil for the land involved, MP Corp said.
ARB’s wholly owned unit AmanahRaya Development Sdn Bhd (ADSB) will pay RM99mil for a 22% stake in the joint venture, while MP Corp will retain a 78% share.
MP Corp was entitled to seek a joint-venture partner in its 78% profit entitlement of the developer, the statement said.
“The project is targeted at Malaysia My Second Home buyers, expatriates, Singaporeans and affluent Malaysians, complemented by plentiful medium-cost housing adjacent and nearby LakeHill Resort City and Aptec,’’ it said.
MP Corp is developing 970 high medium-cost houses in Taman Nusa Damai next to LakeHill Resort and Aptec.
By The Star
“The gross development cost of the project is estimated at RM4.2bil and is anticipated to generate development profits of RM2.4bil with an estimated completion time by 2015,’’ MP Corp told Bursa Malaysia yesterday. ARB is a company under Minister of Finance Inc (MoF).
MP Corp said it expected to raise development financing and construction bridging loan of RM200mil to fast-track the development. Additional funds would be raised via cashflow and profits derived from sales and “subsidiary joint venture” of the 22 parcels of approved projects for the township.
ARB and MP Corp have “agreed that a further option to speed up the project is by way of public listing on Bursa Malaysia of the developer within three to four years.”
“LakeHill Resort City is targeted to be the home of the trading, distribution, entertainment, shopping and tourism hub of Iskandar Malaysia to boost investor and economic activities for Johor and the country,’’ MP Corp said in the statement.
The centrepiece of the development will be the Asia Pacific Trade & Expo City (Aptec), a four million gross sq ft permanent trade and expo city, touted to be the largest of its kind in Asia.
A total of 9,116 residential units and 1,022 commercial units are being planned at the township.
MP Corp announced that it would undertake an internal restructuring to facilitate the joint venture with ARB involving the sale of its 276ha land bank to a special purpose vehicle called Oriental Pearl City Properties Sdn Bhd for RM135.3mil.
An independent valuer, on July 29, ascribed a fair market value of RM450mil for the land involved, MP Corp said.
ARB’s wholly owned unit AmanahRaya Development Sdn Bhd (ADSB) will pay RM99mil for a 22% stake in the joint venture, while MP Corp will retain a 78% share.
MP Corp was entitled to seek a joint-venture partner in its 78% profit entitlement of the developer, the statement said.
“The project is targeted at Malaysia My Second Home buyers, expatriates, Singaporeans and affluent Malaysians, complemented by plentiful medium-cost housing adjacent and nearby LakeHill Resort City and Aptec,’’ it said.
MP Corp is developing 970 high medium-cost houses in Taman Nusa Damai next to LakeHill Resort and Aptec.
By The Star
Hunza: Cut low-cost housing quota to 15pc
A review by the government of the 30 per cent low-cost housing quota imposed on private property developers under Budget 2009 will spur property players to bring down prices of other units being developed.
Hunza Properties Bhd chairman Datuk Khor Teng Tong proposed that the quota be reduced to 15 per cent as this will help the property industry cushion the impact of the current softening of the sector, which is expected to continue into 2009.
"The 30 per cent quota imposed currently is not helping consumers since developers are merely transferring the cost in building other properties to them.
"But by being made to subsidise less, we can then transfer the cost-savings to our buyers," he told a media briefing in Penang yesterday after announcing Hunza's financial results for the year ended June 30 2008.
Khor, who is also the International Real Estate Federation (FIABCI) Penang branch president, said the property cycle is on a downward trend.
"Factors such as price increase of building materials and the current local political environment are impacting negatively on the industry," he added, saying that the downward trend in the property industry is expected to continue into next year.
Reviewing the stamp duty to lower costs of home ownership is also on Khor's wish list for Budget 2009.
"This move will encourage house purchase and property investment among the general public," he added.
Other measures which can assist property players would be to control the prices of steel and cement, Khor said.
Meanwhile, construction of the RM700 million 'Gurney Paragon' project in Pulau Tikus is progressing according to schedule although the company has taken cost-cutting measures to face uncertain times.
"By taking on the role of main contractor for future phases of the project, we are looking at savings of between six per cent and 10 per cent in margins," Khor said.
He said Gurney Paragon and the 'Infinity' project in Tanjung Bungah are targeted at foreign purchasers.
"Prices of Malaysian properties in the global market are still competitive and the government can help Malaysian property players who market their projects overseas by giving tax incentives for overseas property promotion efforts," Khor said.
"Hunza has not experienced any significant margin compression as our products remain in demand and we have adjusted prices to cover the increase in cost," he added.
By New Straits Times (by Marina Emmanuel)
Hunza Properties Bhd chairman Datuk Khor Teng Tong proposed that the quota be reduced to 15 per cent as this will help the property industry cushion the impact of the current softening of the sector, which is expected to continue into 2009.
"The 30 per cent quota imposed currently is not helping consumers since developers are merely transferring the cost in building other properties to them.
"But by being made to subsidise less, we can then transfer the cost-savings to our buyers," he told a media briefing in Penang yesterday after announcing Hunza's financial results for the year ended June 30 2008.
Khor, who is also the International Real Estate Federation (FIABCI) Penang branch president, said the property cycle is on a downward trend.
"Factors such as price increase of building materials and the current local political environment are impacting negatively on the industry," he added, saying that the downward trend in the property industry is expected to continue into next year.
Reviewing the stamp duty to lower costs of home ownership is also on Khor's wish list for Budget 2009.
"This move will encourage house purchase and property investment among the general public," he added.
Other measures which can assist property players would be to control the prices of steel and cement, Khor said.
Meanwhile, construction of the RM700 million 'Gurney Paragon' project in Pulau Tikus is progressing according to schedule although the company has taken cost-cutting measures to face uncertain times.
"By taking on the role of main contractor for future phases of the project, we are looking at savings of between six per cent and 10 per cent in margins," Khor said.
He said Gurney Paragon and the 'Infinity' project in Tanjung Bungah are targeted at foreign purchasers.
"Prices of Malaysian properties in the global market are still competitive and the government can help Malaysian property players who market their projects overseas by giving tax incentives for overseas property promotion efforts," Khor said.
"Hunza has not experienced any significant margin compression as our products remain in demand and we have adjusted prices to cover the increase in cost," he added.
By New Straits Times (by Marina Emmanuel)
Wednesday, August 20, 2008
Kerry: Demand for China properties 'robust'
KERRY Properties Ltd, the Hong Kong-based builder controlled by the family of Malaysian tycoon Robert Kuok, said demand for Chinese real estate is "robust," and will weather any damage from monetary policy controls.
"The tightening of credit has had a direct impact on investment sentiment," Kerry said in its earnings statement yesterday. "However, the group is of the view that given the strong underlying economic fundamentals and continued growth trends in China, the continual demand for real estate properties remains."
Net income was little changed at HK$2.48 billion (US$317 million) compared with HK$2.47 billion a year earlier, Kerry said. Revenue climbed 24 per cent. Profit excluding revaluation gains rose 12 per cent.
Kerry is expanding in mainland China. The developer and three partners last month said they are investing as much as 7.3 billion yuan (US$1.06 billion) in a project in the northern province of Hebei. Kerry will own 40 per cent of the project.
China in March announced plans to tighten controls on foreign investment in real estate to curb inflows of so-called "hot money." China also put in place other controls to help restrain inflation. The economy grew 10.1 per cent in the second quarter, the fourth consecutive slowdown.
Kerry, whose parent company also invests in media and logistics, owns office buildings and shopping malls in Hong Kong, where values have surged since 2005 as rents rose because of increased consumer spending.
Kerry said the Hong Kong property market eased "mildly" in the second quarter, though land supply shortages will underpin demand longer term.
Kuok, 84, was listed as Malaysia's richest man by Forbes Magazine in May. He and his family have estimated wealth of US$10 billion, according to Forbes.
By Bloomberg
"The tightening of credit has had a direct impact on investment sentiment," Kerry said in its earnings statement yesterday. "However, the group is of the view that given the strong underlying economic fundamentals and continued growth trends in China, the continual demand for real estate properties remains."
Net income was little changed at HK$2.48 billion (US$317 million) compared with HK$2.47 billion a year earlier, Kerry said. Revenue climbed 24 per cent. Profit excluding revaluation gains rose 12 per cent.
Kerry is expanding in mainland China. The developer and three partners last month said they are investing as much as 7.3 billion yuan (US$1.06 billion) in a project in the northern province of Hebei. Kerry will own 40 per cent of the project.
China in March announced plans to tighten controls on foreign investment in real estate to curb inflows of so-called "hot money." China also put in place other controls to help restrain inflation. The economy grew 10.1 per cent in the second quarter, the fourth consecutive slowdown.
Kerry, whose parent company also invests in media and logistics, owns office buildings and shopping malls in Hong Kong, where values have surged since 2005 as rents rose because of increased consumer spending.
Kerry said the Hong Kong property market eased "mildly" in the second quarter, though land supply shortages will underpin demand longer term.
Kuok, 84, was listed as Malaysia's richest man by Forbes Magazine in May. He and his family have estimated wealth of US$10 billion, according to Forbes.
By Bloomberg
Property mart expected to shake off lethargy next year
The sluggish property market could recover in six to nine months as the supply of materials stabilises and buyers adapt to the higher cost of living.
"In 2009, the cloud will be clearer," said Datuk Michael K.C. Yam, chairman of the Real Estate and Housing Developers Association (Rehda).
Buyers are cautious about buying property after Malaysia hiked the petrol price by 41 per cent in June. Some are having problems getting financing as banks are more strict when giving out loans due to the tougher economic outlook.
"When there is certainty in fuel price and there is regular cement and steel supply at market driven prices, I think people can plan better," Yam told reporters at a briefing in Kuala Lumpur yesterday.
Construction and operational costs have jumped by 30 per cent and 20 per cent each respectively, resulting in prices of new launches increasing by about 20 per cent.
According to Rehda's Property Survey for the first half of this year, the rising costs of building material and fuel have also impacted developers' production delivery.
"Most members reported having difficulties in getting consistent supply of building materials besides their continuously rising price, especially steel and cement," Yam said.
Rehda, with over 1,000 members under its belt, had 135 respondents for its survey, comprising housing and property development companies.
More than half of the respondents said they are launching new projects for the second half of this year. However, new launches in the first half of the year were almost halved compared with the same period last year.
The average number of units to be launched per developer in the second half of this year is 152 units, lower than the 169 units in the same period last year.
By New Straits Times
"In 2009, the cloud will be clearer," said Datuk Michael K.C. Yam, chairman of the Real Estate and Housing Developers Association (Rehda).
Buyers are cautious about buying property after Malaysia hiked the petrol price by 41 per cent in June. Some are having problems getting financing as banks are more strict when giving out loans due to the tougher economic outlook.
"When there is certainty in fuel price and there is regular cement and steel supply at market driven prices, I think people can plan better," Yam told reporters at a briefing in Kuala Lumpur yesterday.
Construction and operational costs have jumped by 30 per cent and 20 per cent each respectively, resulting in prices of new launches increasing by about 20 per cent.
According to Rehda's Property Survey for the first half of this year, the rising costs of building material and fuel have also impacted developers' production delivery.
"Most members reported having difficulties in getting consistent supply of building materials besides their continuously rising price, especially steel and cement," Yam said.
Rehda, with over 1,000 members under its belt, had 135 respondents for its survey, comprising housing and property development companies.
More than half of the respondents said they are launching new projects for the second half of this year. However, new launches in the first half of the year were almost halved compared with the same period last year.
The average number of units to be launched per developer in the second half of this year is 152 units, lower than the 169 units in the same period last year.
By New Straits Times
Asiatic Land in talks to open Premium Outlet
KULAI: Asiatic Land Development Sdn Bhd is discussing with US-based Simon Property Group Inc (SPG) to build the country’s first Premium Outlet centre here.
Executive vice-president Alex Phang said the Malaysian Premium Outlet (MPO) would be built on 20ha in the Asiatic Indahpura Kulaijaya township.
Alex Phang
“The project is likely to start in the last quarter of this year and be completed in 2010,” he told StarBiz at the recent launch of 82 units of Lakeview Residency Precinct 33A semi-detached houses.
He said the MPO project would be a 50:50 joint venture between Asiatic Land and SPG’s division Chelsea Property Group.
Chelsea Property Group, previously a New York Stock Exchange-listed (NYSE) company, was acquired by the NYSE-listed SPG in October 2004.
Chelsea Property is the world’s largest owner, developer and operator of upscale outlet centres with 38 outlets in the US, six in Japan, and one each in South Korea and Mexico.
Headquartered in Indianapolis, SPG is the largest public-listed real estate company in the US. It currently owns or has interest in 383 properties comprising 261 million sq ft of gross lettable area in North America, Asia and Europe.
“The outlet in Kulai will be Chelsea’s first premium outlet in South-East Asia, offering international branded items at discounted prices,” said Phang.
The items are designer fashion and sportswear, shoes, fine leather, luggage, accessories, jewellery, housewares, home furnishings, gifts, speciality items, and products for children.
Phang said apart from Malaysians, the company wanted to attract shoppers from Asean countries, the Middle East, India, China and Australia to shop at MPO.
He said the company planned to work closely with airlines, hotels, tour operators and travel agents in the region to bring shoppers here.
Asiatic Indahpura covers 2,832ha, and to date, 404.8ha has been developed with 5,000 residential and commercial properties.
By The Star - StarBiz - (by Zazali Musa)
Al-'Aqar REIT to buy 9 more properties
AL-'AQAR KPJ REIT, the world's first Islamic heathcare property trust, said it plans to inject nine more properties into the trust, raising its asset size to just over RM1 billion by year-end from RM651 million now.
Of the nine properties, it will buy six hospital buildings and one nursing college from KPJ Healthcare Bhd for RM305.9 million.
The remaining two properties it plans to buy are a hotel and office tower, Hotel Selesa and Metropolis Tower, which company officials said will be complementary to the healthcare tourism industry.
If regulators approve the deal, it will be the first time in the world that a hotel is included in an Islamic REIT.
Under syariah guidelines, hotels cannot be included.
"The hotel is well-positioned to benefit from health tourism sector growth and its operations are in accordance with syariah principles," KPJ chairman Tan Sri Muhammad Ali Hashim said at a media briefing yesterday.
The REIT's syariah committee had last month approved the proposed purchase, he said.
Some RM392.9 million will go towards the purchase of the nine new assets. This will be satisfied by RM249 million cash and the issuance of 151.4 million new REIT units at 95 sen each.
KPJ will use funds from the sale to Al-'Aqar to build and acquire more hospitals, as well as reduce borrowings.
"We have RM200 million to RM300 million available to build and acquire hospitals, and we can also raise more cash by reducing our stake in the REIT," Muhammad Ali told reporters at a briefing yesterday.
For now, he wants KPJ to maintain a stake of about 49 per cent in the REIT.
KPJ owns or manages 18 hospitals in Malaysia and six overseas. Hospitals overseas may later be injected to the REIT, but "not at this juncture".
The seven buildings that KPJ is selling to the REIT are the Seremban Specialist Hospital, Taiping Medical Centre, Kota Kinabalu Specialist Hospital, Bukit Mertajam Specialist Hospital, KPJ Tawakal Specialist Hospital new building, KPJ Penang Specialist Hospital and PNC International College of Nursing and Health Science.
This will be the third injection of properties into the REIT and it is expected to be completed by year-end.
Meanwhile, the REIT yesterday declared a dividend of four sen a unit for the first half of the year ended June 30 2008. Net income for the first half grew by 16.6 per cent to RM14.4 million.
Yesterday, the KPJ board also approved expansion plans for the Nilai college, where it recently bought a nine-hectare piece of land.
For the first phase, KPJ will spend RM22 million to build facilities to accommodate up to 3,000 students from 1,200 currently.
By New Straits Times (by Adeline Paul Raj)
Of the nine properties, it will buy six hospital buildings and one nursing college from KPJ Healthcare Bhd for RM305.9 million.
The remaining two properties it plans to buy are a hotel and office tower, Hotel Selesa and Metropolis Tower, which company officials said will be complementary to the healthcare tourism industry.
If regulators approve the deal, it will be the first time in the world that a hotel is included in an Islamic REIT.
Under syariah guidelines, hotels cannot be included.
"The hotel is well-positioned to benefit from health tourism sector growth and its operations are in accordance with syariah principles," KPJ chairman Tan Sri Muhammad Ali Hashim said at a media briefing yesterday.
The REIT's syariah committee had last month approved the proposed purchase, he said.
Some RM392.9 million will go towards the purchase of the nine new assets. This will be satisfied by RM249 million cash and the issuance of 151.4 million new REIT units at 95 sen each.
KPJ will use funds from the sale to Al-'Aqar to build and acquire more hospitals, as well as reduce borrowings.
"We have RM200 million to RM300 million available to build and acquire hospitals, and we can also raise more cash by reducing our stake in the REIT," Muhammad Ali told reporters at a briefing yesterday.
For now, he wants KPJ to maintain a stake of about 49 per cent in the REIT.
KPJ owns or manages 18 hospitals in Malaysia and six overseas. Hospitals overseas may later be injected to the REIT, but "not at this juncture".
The seven buildings that KPJ is selling to the REIT are the Seremban Specialist Hospital, Taiping Medical Centre, Kota Kinabalu Specialist Hospital, Bukit Mertajam Specialist Hospital, KPJ Tawakal Specialist Hospital new building, KPJ Penang Specialist Hospital and PNC International College of Nursing and Health Science.
This will be the third injection of properties into the REIT and it is expected to be completed by year-end.
Meanwhile, the REIT yesterday declared a dividend of four sen a unit for the first half of the year ended June 30 2008. Net income for the first half grew by 16.6 per cent to RM14.4 million.
Yesterday, the KPJ board also approved expansion plans for the Nilai college, where it recently bought a nine-hectare piece of land.
For the first phase, KPJ will spend RM22 million to build facilities to accommodate up to 3,000 students from 1,200 currently.
By New Straits Times (by Adeline Paul Raj)
US July housing starts at 17-year low
BUILDERS in the US broke ground in July on the fewest houses in 17 years, signaling the residential-construction slump will continue to hurt economic growth.
The 11 per cent decrease to an annual rate of 965,000, the lowest since March 1991, followed a 1.084 million pace the prior month, the Commerce Department said yesterday in Washington. July's pace was higher than economists anticipated. Building permits, a sign of future construction, also fell.
Permits decreased 18 per cent to a 937,000 annual pace, lower than the 970,000 rate projected by economists.
By Bloomberg
The 11 per cent decrease to an annual rate of 965,000, the lowest since March 1991, followed a 1.084 million pace the prior month, the Commerce Department said yesterday in Washington. July's pace was higher than economists anticipated. Building permits, a sign of future construction, also fell.
Permits decreased 18 per cent to a 937,000 annual pace, lower than the 970,000 rate projected by economists.
By Bloomberg
Al-Aqar REIT to cross RM1bil by year-end
KUALA LUMPUR: The Al-Aqar KPJ Real Estate Investment Trust (REIT) is set to cross its RM1bil target for total asset size by year-end.
Its 11 assets are at present worth RM651.5mil and it yesterday added nine more purchased from KPJ Healthcare Bhd. The deal will be completed by the end of the year.
Al-Aqar, Malaysia’s first Islamic Healthcare REIT, previously bought over the 11 assets from KPJ Healthcare Bhd.
It is also one of only two Islamic REITS in the country. The total purchase consideration for the new acquisitions is RM392.9mil, to be satisfied partly by RM250mil in cash and through the issuance of 151.446 million new units at an issue price of 95 sen per unit.
KPJ Healthcare chairman Tan Sri Muhammad Ali Hashim said Al-Aqar would emerge as the largest Islamic REIT in the country once it crossed the RM1bil asset size target and this would appeal to foreign investors.
“It would help draw foreign direct investment into Malaysia,” he said at a briefing on Al-Aqar REIT yesterday. Seven hospitals are among the new properties to be included in the REIT.
They are the Seremban Specialist Hospital, the Taiping Medical Centre, the Kota Kinabalu Specialist Hospital, the Bukit Mertajam Specialist Hospital, the KPJ Tawakal Specialist Hospital New Building, the KPJ Penang Specialist Hospital and the PNC International College of Nursing and Health in Nilai.
The two other properties are Hotel Selesa and Metropolis Tower in Johor Baru. Al-Aqar KPJ REIT is managed by Damansara REIT Managers Sdn Bhd.
Damansara REIT Managers chief executive officer Yusaini Sidek said Al-Aqar would declare a four sen dividend per unit for its financial interim period ended June 30 compared to the previous corresponding period.
“For 2008, Al-Aqar KPJ REIT has forecast to do better than the 7.32 sen dividend we paid out in 2007,” he said.
Al-Aqar recorded a 27% increase in revenue of RM22.75mil for the first six months of 2008, up from the RM17.85mil in the previous corresponding period. Its net income improved 16.6% to RM14.43mil compared with RM12.38mil previously due to rentals received from the second acquisition of hospitals completed earlier as well as those from existing ones.
By Bernama
YTL Corp nets lower profit in Q4
MALAYSIA'S largest builder and power group YTL Corp Bhd's net profit for its final quarter to June 30 2008 fell 35.5 per cent to RM231.5 million from RM359.4 million in the same period last year.
Revenue for the last three months of the accounting year did, however, improve by 9.2 per cent to RM1.88 billion from RM1.72 billion previously.
The group's net profit for the year just ended rose 11 per cent to RM847.9 million against RM762.4 million previously, helped by earnings at its utility and cement divisions.
Revenue climbed 10 per cent to RM6.62 billion from RM6 billion a year ago, driven by its overseas operations including the UK, Australia and Indonesia.
"The group after considering its current level of operations and the current market conditions, is expected to achieve satisfactory performance for the current financial year ending June 30, 2009," YTL announced to Bursa Malaysia yesterday.
Net profit of its units YTL Power International Bhd also fell by 11 per cent to RM1.03 billion due to an exceptional tax credit of RM132.9 million in the last quarter of 2007 financial year.
Revenue was up 6.7 per cent to RM1.38 billion, helped by better performance in all business segments including Wessex Water Limited in the UK and PT Jawa Power in Indonesia.
Meanwhile, YTL Cement Bhd reported a 21.3 per cent increase in profit to RM191.6 million against a revenue of RM1.46 billion for the year to June 30.
The YTL group has recommended an additional final gross dividend of five per cent for the year just ended.
"The strength of the year's performance has, in turn, enabled us to sustain our dividend payout levels, and the group expects to be able to continue to reward long-term shareholders with dividends for future years.
YTL Corp, for example, has paid dividends to its shareholders consecutively for 24 years and remains committed to its dividend policy," YTL group managing director Tan Sri Datuk Francis Yeoh Sock Ping said in a statement yesterday.
YTL Power and YTL Cement also recommended additional final gross dividends of 7.5 per cent and five per cent respectively for the year ended June 30.
By New Straits Times
Revenue for the last three months of the accounting year did, however, improve by 9.2 per cent to RM1.88 billion from RM1.72 billion previously.
The group's net profit for the year just ended rose 11 per cent to RM847.9 million against RM762.4 million previously, helped by earnings at its utility and cement divisions.
Revenue climbed 10 per cent to RM6.62 billion from RM6 billion a year ago, driven by its overseas operations including the UK, Australia and Indonesia.
"The group after considering its current level of operations and the current market conditions, is expected to achieve satisfactory performance for the current financial year ending June 30, 2009," YTL announced to Bursa Malaysia yesterday.
Net profit of its units YTL Power International Bhd also fell by 11 per cent to RM1.03 billion due to an exceptional tax credit of RM132.9 million in the last quarter of 2007 financial year.
Revenue was up 6.7 per cent to RM1.38 billion, helped by better performance in all business segments including Wessex Water Limited in the UK and PT Jawa Power in Indonesia.
Meanwhile, YTL Cement Bhd reported a 21.3 per cent increase in profit to RM191.6 million against a revenue of RM1.46 billion for the year to June 30.
The YTL group has recommended an additional final gross dividend of five per cent for the year just ended.
"The strength of the year's performance has, in turn, enabled us to sustain our dividend payout levels, and the group expects to be able to continue to reward long-term shareholders with dividends for future years.
YTL Corp, for example, has paid dividends to its shareholders consecutively for 24 years and remains committed to its dividend policy," YTL group managing director Tan Sri Datuk Francis Yeoh Sock Ping said in a statement yesterday.
YTL Power and YTL Cement also recommended additional final gross dividends of 7.5 per cent and five per cent respectively for the year ended June 30.
By New Straits Times
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