Asian Pac to build 'the most fashionable address' in KK

ASIAN Pac Holdings Bhd wants to make KK Times Square II, the second phase of its mall and office project in the heart of Kota Kinabalu, Sabah, 'the most fashionable address in the city'.

The second phase, a 3.7 million sq ft mall and service apartments, is being developed by Syarikat Kapasi Sdn Bhd, a subsidiary of Asian Pac.



"Much thought has been put into its design with the aim of making it into the most fashionable address and shopping destination in the city," said Asian Pac chairman Tan Sri Megat Najmuddin Megat Khas.

Strategically located along the coastal highway within the city's business district, the 15-acre development comprises a four-storey shopping mall and serviced apartments.
The shopping centre, to be called The Mall, will have 670,000 sq ft of retail units available for lease only and not for sale. Parkson is the confirmed anchor tenant.

There will also be five blocks of serviced apartments. KK Times Square II's third component is 41 units of exterior shops which will be sold.

Construction of KK Times Square II is expected to start this year.

Megat Najmuddin was speaking to reporters at the signing ceremony between Kapasi and Danajamin Nasional Bhd for a financial guarantee facility agreement where Danajamin will guarantee Kapasi's RM200 million five-year Private Debt Securities programme.

By Business Times

SP Setia’s Q2 net profit rises 26%

KUALA LUMPUR: Property developer SP Setia Bhd posted a 26% increase in net profit to RM51.2mil for its second quarter ended April 30, compared with RM40.52mil in the corresponding period last year.

Revenue for the second quarter increased to RM409.1mil from RM352.2mil previously.

In a filing to Bursa Malaysia yesterday, the company said the improved performance was mainly due to better sales in residential and commercial properties in the Klang Valley and Johor Baru. SP Setia said it continued to set new sales benchmarks with second-quarter sales of RM598mil and cumulative six-month sales of RM1.206bil.

As at May 31, the company’s sales (based on sale and purchase agreements signed) for the first seven months totalled RM1.44bil

The management expects to achieve its sales target of RM2bil for the financial year ending Oct 31, 2010 (FY10) on the back of strong sales momentum and upbeat consumer sentiment.

Underpinned by the strength of sales in established markets, SP Setia said it would continue to strengthen its position and standing in new market segments, locally and abroad.

“This will broaden our earnings base and ensure continued dynamism and growth over the long run,” it said.

In a separate filing, the company said it had proposed an interim dividend of 6 sen per share less income tax of 25% for FY10.

By The Star

SP Setia at month high after profit surges

SP Setia Bhd, Malaysia’s biggest property developer, rose to a one-month high after profit in the second quarter ended April 30 climbed 26 per cent from a year earlier.

SP Setia posted a higher pre-tax profit of RM71 million for its second quarter ended April 30, 2010, compared with RM55.7 million in the same period last year.

This was mainly attributed to profit from residential and commercial properties in the Klang Valley and Johor Baru, it said in a filing to Bursa Malaysia on Thursday.

SP Setia's revenue for the second quarter increased to RM409.1 million from RM352.2 million while the net profit rose by 26 per cent to RM51.2 million from RM40.5 million previously.
The stock gained 1 per cent to RM4.07 at 9:03 am local time in Kuala Lumpur trading, set for its highest close since May 13.

Meanwhile, the group has said that it continues to set new sales benchmarks with second-quarter sales of RM598 million and cumulative six-month sales of RM1.206 billion.

As at May 31, the group's sales for the first seven months totalled RM1.438 billion, with the sale and purchase agreements signed.

SP Setia said the management was confident that the group's financial year 2010 sales target of RM2 billion was achievable based on the strong sales momentum and upbeat consumer sentiment.

Underpinned by the strength of sales in established markets, the group said it continued to strive to strengthen its positioning and standing in new market segments, both locally and abroad.

"This will broaden the group's earnings base and ensure continued dynamism and growth over the long run," it added.

By Bloomberg

Sunway plans S. Lanka tie-up

KUALA LUMPUR: Sunway Holdings Bhd and Sri Lanka-based Dasa Tourist are looking at the possibility of forming a joint venture to develop a 34-storey tower in Colombo, Sri Lanka.

In a statement yesterday, Sunway said it had entered into a memorandum of understanding (MoU) with Dasa Tourist for the proposed project which has an estimated gross development value of RM250mil.

Dasa Tourist is a wholly-owned subsidiary of the Dasa Group.

Under the MoU, Sunway shall undertake feasibility studies and market research to ascertain the viability of the proposed property project.

The move is in line with Sunway’s strategy to invest in industries of growing economies in which it has a core expertise.

It would also provide Sunway the opportunity to explore the feasibility of expanding its property development business in Sri Lanka by developing a parcel of land in an attractive location.

The proposed project is located on a plot of prime freehold land in the premium mixed-use zone of Bambalapitiya in District Colombo 4.

It has the potential to generate a total sellable area of 400,000 square feet.

By Bernama

Magna Prima upbeat on earnings rebound

PROPERTY developer Magna Prima Bhd is optimistic of net profit in the financial year ending December 31 2011 recovering to 2007 and 2008 levels of around RM27 million.

Last year, its net profit declined to RM6.67 million as most of its projects neared completion.

The projected numbers, however, are based on current accounting standards, Magna Prima chief executive officer Yoong Nim Chee said.

He added that the company has projected some RM150 million to RM200 million revenue this financial year from RM1 billion of projects that it will be launching.

"This year, revenue will be maintained at around last year's level of RM191 million, but profit will be up primarily because we are starting new projects with better profit profiles," Yoong told reporters after Magna Prima's annual general meeting in Kuala Lumpur yesterday.

The projects include residential developments in Selayang, Selangor, and Bukit Jalil in Kuala Lumpur. Magna Prima will also be launching commercial projects in Shah Alam and Petaling Jaya, both in Selangor, and in Jalan Kuching, Kuala Lumpur.

Magna Prima, which saw some 16.8 per cent of revenue last year from construction and engineering activities, said it will not be aggressively seeking external construction jobs but will focus on in-house projects.

With the exception of the land in Jalan Ampang on which the Lai Meng Chinese School sits, the group expects to complete all of its ongoing projects by 2014. Currently, it has some 30.38ha landbank.

It also expects to begin the proposed RM1.3 billion commercial and residential development on the site of the Lai Meng Chinese School in 2012 as planned and to complete it by 2015.

The company is hopeful that the Ministry of Education will give its approval within the next three months for the school to be relocated to Bukit Jalil.

Magna Prima, which will provide advice on design in the construction of the school, said that tenders will be called out and that it will also bid for the project.

While Yoong was not able to state the estimated project value, he said the school was looking at including a swimming pool and an auditorium.

To a question on new shareholders Lee Ban Chuan and Lee Hing Lee, who have emerged in the company via Fantastic Realty Sdn Bhd which now owns 15.41 per cent of Magna Prima, Yoong said he understood that they were passive investors and that there had been no indication that they would raise their stake in the company.

On the police report made against its former chief executive officer, Lim Ching Choy, for alleged criminal breach of trust, Yoong said that there had been no developments.

By Business Times

China property bubble to burst 'very quickly'

SINGAPORE: The "bubble" in China's property market is going to burst very quickly, with prices set to fall as much as 20 per cent in the next 12 to 18 months, according to Nomura Holdings Inc.

National real-estate prices may drop between 10 per cent and 20 per cent on average, compared with an increase of about 22 percent last year, Sun Mingchun, a Hong Kong-based economist at Nomura, said in a Bloomberg Television interview.

"If you look at housing prices to disposable income in Beijing and Shanghai, they are 13, 14 times," said Sun. "There's no way you can say there's no bubble."

Real-estate prices jumped 12.4 per cent across 70 cities in May, adding to the 12.8 per cent surge in April that was the most since the data series began in 2005. The gains suggest that measures ranging from a ban on loans for third-home purchases to higher mortgage rates and downpayment requirements for second- home purchases have yet to cool the real-estate market.
Stephen Roach, chairman of Morgan Stanley Asia Ltd, said the government's measures are working "by all accounts".

China's property boom isn't a bubble because it's supported by "solid" demand for residential housing, he said. While portions of the real-estate market such as high-end apartments are overheating, demand for homes will remain robust as rural Chinese migrate to bigger cities, he said in a radio interview.

"This is just a sliver of the property boom," Roach said, citing that each year since 2000, between 15 and 20 million people migrate to Beijing, Shanghai, and second- and third-tier cities in the mainland.

The China Banking Regulatory Commission warned of growing credit risks in the nation's real-estate industry and increasing pressures of non-performing loans. Risks associated with home mortgages are growing and a "chain effect" may reappear in real-estate development loans, according to its annual report published on its website on Monday.

By Bloomberg

Sunway REIT IPO launched

Minister in the Prime Minister’s Department Tan Sri Nor Mohamed Yakcop (left) and Sunway Group founder and chairman Tan Sri Dr Jeffrey Cheah at the launch of Sunway REIT’s prospectus yesterday.

PETALING JAYA: Sunway City Bhd (SunCity) and Sunway REIT Management Sdn Bhd have launched the initial public offering (IPO) of 1.65 billion units in Sunway Real Estate Investment Trust (Sunway REIT).

Sunway REIT, which has an approved fund size of 2.78 billion units, will become Malaysia’s largest listed REIT when it lists on the Main Market of Bursa Malaysia in July. Sunway REIT Management is the manager for Sunway REIT.

Eight properties, with an appraised value of RM3.7bil, would be injected into the REIT. They are Sunway Pyramid Shopping Mall, Sunway Carnival Shopping Mall, SunCity Ipoh Hypermarket, Sunway Resort Hotel and Spa, Pyramid Tower Hotel, Sunway Hotel Seberang Jaya and office properties.

Sunway REIT Management chief executive officer Datuk Jeffrey Ng said the company was committed to actively providing value-added services to the properties.

“Four of the assets are in Bandar Sunway, which has over the years proven its growth potential as a landmark tourist destination,” he said.

He said there was a planned enhancement of several existing assets, and leasing of recently completed space, adding that the assets being injected into the REIT were assets in locations that had proven track records for growth.

Sunway REIT’s IPO comprises an institutional and selected investors portion of 1.52 billion units and a retail portion of 134 million units.

The final retail price per offer unit would be the lower of 97 sen, or 97% of the institutional offer price, to be determined by way of bookbuilding.

Four cornerstone investors – the Employees Provident Fund, Permodalan Nasional Bhd, Government of Singapore Investment Corp and Great Eastern Life Assurance (M) Bhd – have secured 376 million units, or about 22.7% of the offer units.

An analyst with a local brokerage said the listing of Sunway REIT next month would be a milestone for Malaysian REITs (M-REITs) not only because of its large fund size, but also because it had attracted several cornerstone investors.

“Sunway REIT will be on the radar of the ‘big boys’ and this can only be good for the smaller REITs as well,” he said.

The analyst also said Sunway REIT could bolster the equity market and make it more attractive to foreign institutional players.

According to the analyst, Sunway REIT’s dividend yield was about 6.7% (based on forecast dividend per unit or DPU of 6.7 sen), which was below the average 8.5% for other REITs. He said the REIT’s IPO was at a premium to other M-REITs.

“But taking account of the size of the trust and its potential, we believe Sunway REIT has its merits,” he said.

A REIT adviser said that while Sunway REIT had its “attractiveness”, there could be some investors who preferred to invest in pure-play REITs that were focused on specific asset classes such as retail, office space and warehouse.

“Sunway REIT is a fairly unique trust because it’s a mixed REIT that has retail and hospitality elements,” he said.

The REIT adviser said if the different asset classes were integrated in a synergistic manner and managed well, Sunway REIT might actually offer a favourable return to investors over the longer term. “This is left to be seen,” he said.

By The Star

Sunway REIT sets RM7.4b target

With about 1.6 billion units up for subscription by retail and institutional investors, the REIT is also set to be the most liquid of REITs available in the market.

Malaysia's biggest property trust, the Sunway real estate investment trust (REIT), has set a target to double its size to RM7.4 billion in the next five to seven years.

It will focus its investments on shopping malls, hotels and offices.

"Sunway REIT is very much a township REIT, with the best assets of Bandar Sunway. So, if you believe that in 10 to 15 years we will continue to grow, then you would invest in us," Sunway REIT Management Sdn Bhd chief executive officer Datuk Jeffery Ng said.

The Sunway REIT is made up of eight of Sunway City Bhd's (SunCity) properties in the retail and hospitality space, located in Penang, Perak, Selangor and Kuala Lumpur, valued at RM3.7 billion.
This includes the popular Sunway Pyramid Shopping Mall and its newest purchase, Sunway Tower, an office building in central Kuala Lumpur.

It has an approved fund size of 2.78 billion units.

With about 1.6 billion units up for subscription by retail and institutional investors, the REIT is also set to be the most liquid of REITs currently available in the market.

About 8 per cent of the initial public offer units will be offered to retail investors, while the rest will be offered to Malaysian and foreign institutional investors.

About 35-38 per cent of total approved fund size will be held by SunCity.

"Investors are not looking for the lowest tax scheme, rather they are looking for growth and liquidity. Generally, Malaysian REITS have been illiquid, so the Sunway REIT will interest a lot of investors," RHB Investment Bank Bhd managing director Chay Wei Liong told reporters after the launch of the REIT's prospectus in Petaling Jaya, Selangor, yesterday.

Malaysia imposes a withholding tax of 10 per cent on individual investors for income made from REITs. Singapore, a popular destination for REIT listings, does not have such a tax.

On whether the recent announcement by CapitaMalls Asia to list its REIT on Bursa Malaysia would dampen interest in Sunway REIT, Chay said there was enough money to go around.

Ng did not discount the possibility of secondary listing in Singapore, saying the board will have to decide on that.

On possible plans to inject SunCity's overseas properties into the REIT, Ng said it will focus on Malaysia for the short and medium term.

"In the long term, should and when the opportunity arise we will consider it, and work hand in hand with our sponsor. It would be something that our board of directors would decide on," Ng said.

By Business Times

IJM Prop, Angkasa scrap building plan

IJM Land Bhd said its unit IJM Properties Sdn Bhd and Angkasa Gagah Sdn Bhd, a unit of IGB Corp Bhd, have scrapped a plan to build residential property in Setapak, Selangor.

Both parties signed a deal for the project in October 2006.

IJM did not say why they aborted it but said that it needed regulatory approval for the project.

By Business Times

RM3b boost for Naza TTDI's Platinum Park

The Platinum Park is a high-end integrated residential and commercial lifestyle properties in the Kuala Lumpur City Centre area, worth RM4 billion.

Naza TTDI Sdn Bhd's Platinum Park project in Kuala Lumpur will see a new wave of development as the property developer launches lifestyle properties worth about RM3 billion next year and in 2013.



The 3.68-hectare Platinum Park is a high-end integrated residential and commercial development in the Kuala Lumpur City Centre (KLCC) area, worth RM4 billion.

Group managing director SM Faliq SM Nasimuddin said Naza TTDI will introduce its first residential property - a luxury serviced apartment, by early next year.

It will next launch a high-end condominium towards the end of 2011 or by early 2012.
Faliq said the towers may be named Platinum Park Suites and Platinum Park Residences, respectively.

He said there will be more than 200 units of serviced apartments, with sizes ranging from 500 sq ft to 1,100 sq ft offered to retail investors.

The condominium tower will have more than 100 units, ranging from 2,000 sq ft to 3,500 sq ft.

"We will sell individual units but if we get a good offer for an en bloc, we will consider," he told Business Times in an interview in Shah Alam, Selangor, recently.

Faliq said Naza TTDI will build niche lifestyle retail outlets with some 200,000 sq ft of space.

The final component of Platinum Park will include a luxury five-star 50-storey hotel, where construction will start after 2012.

Faliq said Naza TTDI is in negotiations with several international operators in Asia Pacific and Europe to run and manage the hotel.

Naza TTDI is also in talks with local and foreign investors who are keen to form joint ventures with the company to build the hotel or buy it over.

"We have several options. The end deal will depend on what we have on the table," Faliq said.

Naza TTDI will look at a few financing options to fund the lifestyle components.

"I am very excited with the Platinum Park development. My aim is to make it the most iconic project here. We are targeting to complete this project by 2016 or 2017," Faliq said.

Work in progress include three office towers, which will be built between March and December in 2013.

They include the 50-storey Naza Towers, which will be the Naza Group of Companies' new headquarters, and a 50- and 38-storey tower for plantation group Felda and a government-linked company, respectively.

The towers are designed to be "green buildings" through the efficient use of energy, water and materials.

Naza TTDI will apply for certification under the Green Building Index of Malaysia.

By Business Times

Naza TTDI has big overseas plans

NAZA TTDI Sdn Bhd is mulling the idea of taking the TTDI brand overseas by building townships and mixed developments.

Group managing director SM Faliq SM Nasimuddin said the property company will focus on Asia Pacific and expects to start its maiden construction by 2013.

The plan will include building hotels to expand its leisure division.

"We are talking to investors and hope to form several partnerships with other property developers in Asia Pacific. We have to step outside of Malaysia to expand the growth of the company. We will look at every given opportunity," Faliq said in an interview with Business Times recently.
Faliq said he would like to replicate the multi-billion ringgit Taman Tun Dr Ismail (TTDI) township development in the region.

"We want to move forward with the TTDI brand. People always associate Naza with automotive (business). But we are more than that. We have diversified the group's strategies into other businesses. The core is still auto, followed by property development," he said.

Faliq, 25, is the fourth child of the late Tan Sri Nasimuddin, and probably Malaysia's youngest group MD.

He took control of Naza TTDI at the peak of the company's crisis, when he was 23.

"I saw the worst and was able to push things through. The company is strong and healthy now. We have a few projects in hand worth a combined RM8.5 billion, including Platinum Park, which I am very proud of," Faliq said.

Naza TTDI has unbilled sales of RM1.3 billion and is planning to launch new projects this year.

On how he manages the Naza Group's property and construction division as well as personal life, Faliq said being hands on is a key contributor.

"I spend most of my time in the office and I know exactly what is going on around. I read a lot of materials about the market place.

"This is still a family business. I am very close to all my siblings and we always sit together for dinner and talk about the day's happenings and how to achieve a new beginning. It is very exciting," Faliq said.

Faliq is a huge fan of the Ferrari Maserati and drives the marque himself to work.

He is active in sports and plays football, badminton and golf, occasionally, with his childhood friends.

Faliq is a firm believer of maintaining a healthy body and tries to visit the gymnasium once a week.

"I cannot live like any 25-year-old because of my responsibilities. When I have time, I make it possible for everything else that is not work-related," he said.

By Business Times

I&P to focus on new projects

PROPERTY developer I&P Group Sdn Bhd expects to fully develop its massive land bank of about 5,400 acres with a potential gross development value of up to RM10bil over a span of 10-20 years, says group managing director Datuk Jamaludin Osman.

“Each of our township will take about 12 years to be fully developed. Our focus will be on the launch of new projects or phases to cater to market demand,” he tells StarBizWeek.

The group’s prominent townships include Bandar Kinrara, Alam Impian in Shah Alam, Alam Sari in Bangi and Taman Pelangi in Johor Baru.


Datuk Jamaludin Osman ... ‘Each of our township will take about 12 years to be fully developed.’

Jamaludin expects the outlook of the property market to be bright for the year and as such, is confident its launches will be well received by the market.

“The target revenue of RM1bil (for the current financial year) may be higher if market demand stays robust this year, hence more new launches are expected at our existing townships,” he says.

The new launches include terrace houses, semi-ds and also bungalows. The company is also planning to build service apartments on its existing townships in Klang Valley in future but this will be timed according to market demand.

During the group’s launch of Temasya Glenmarie, buyers flocked the launch venue to buy up the property while in Bandar Kinrara, I&P had to resort to a balloting system as the response was overwhelming.

“We believe our track record of delivering quality products to buyers and our strategic township locations are the pull factors,” Jamaludin says.

The price range of I&P properties are generally not cheap but are still sought after given their strategic locations and expectation of better returns on investment.

For example, the recent launch of Sapphire terraced homes in Bandar Kinrara, which had four designs with built-ups of 2,354 to 2,900 sq ft are priced from RM520,888 onwards.

Yet, the 104 units had to be sold via a balloting exercise because 448 registrations were received.

“Our products do give better returns on investment to buyers. For example, a terrace house in Bandar Kinrara is now worth about RM700,000 while in Alam Impian, a terrace house can fetch about RM500,000,” Jamaludin says.

He says the group has three target markets – first time buyers, up-graders and investors.

Asked whether the group has any plans to venture abroad like many of its peers, Jamaludin says not for the time being.

“We need to do a very comprehensive risk management analysis before making any plans to go overseas. We need to know the risk and also the market situation of the target countries if we go abroad,” he says.

I&P Group is a subsidiary of Permodalan Nasional Bhd. It was formed in May 2009 after the successful merger exercise between three companies: Island & Peninsular Sdn Bhd, Petaling Garden Sdn Bhd and Pelangi Sdn Bhd.

The exercise also saw several subsidiaries becoming part of the I&P Group, namely Perumahan Kinrara Bhd, Syarikat Perumahan Pegawai Kerajaan Sdn Bhd and I&P Alam Impian Sdn Bhd.

By The Star

SDB eyes Singapore’s premium property market

View of the living room at Gilstead Two.

SELANGOR Dredging Bhd’s (SDB) property arm, SDB Properties Sdn Bhd is riding high in Singapore, eyeing the premium property market there.

After the launch of its first residential project in 2007 called Jia, a 22-unit seven-storey apartment block, SDB is moving forward with its second property development, Gilstead Two at Gilstead Road near Newton MRT station.

The project, with a gross development value (GDV) of S$200mil (RM470.95mil), comprises 110 units in a 34-storey tower.

Unlike Jia, which offers larger unit sizes (two and three-bedroom units of between 1,200 sq ft to 1,600 sq ft), Gilstead Two offers much smaller units (Type A is 904 sq ft while Type B is 775 sq ft).

It is believed that Gilstead Two has received positive response; 33 of the 40 units released for private viewing recently were snapped up at prices ranging from S$1,900 per sq ft to S$2,300 per sq ft. The project is expected to be completed by 2014.

SDB managing director Teh Lip Kim tells StarBizWeek that the property market in Singapore is buoyant, like other financial hubs throughout the globe.

“Property prices there went down in 2008 by as much as 30% in certain areas but has picked up again to pre-crisis levels since the start of the second quarter of 2010,” she says.

SDB also has a parcel of land in Singapore, located in Ballestier Road that it plans to develop and launch by the end of the financial year (March 31, 2011).

“We are currently coming up with the concept for this development,” she says. SDB has picked Singapore as a sweet spot for its developments due to several reasons.

“It is close by, so it’s easy to keep track on the progress of the developments. Singapore is the financial hub of this region and the market is open and competitive. It is relatively easy to do business there, approvals are easily obtained once all the conditions are met,” says Teh. In fact, she says submissions for approvals are made on-line and approvals are also obtained on-line, making it a very efficient process.

On the contribution of the group’s projects in Singapore to its earnings, Teh says it is not significant at the moment but should pick-up due to the Gilstead Two development.

The group also has several projects in the pipeline in Malaysia to be launched soon. This includes 20Trees West, a low density bungalow development in Melawati which comprises 48 units of three-storey bungalows with swimming pools. The size of the homes range from 6,200 sq ft upward.

Teh says SDB also has a new condominium project located in a quiet enclave along Jalan Ampang, close to the British High Commission.

The development is called Dedaun and it comprises 38 units of spacious homes in a 10-storey building. “These homes measure about 3,200 sq ft, and have been designed with the sublime feel of homes in the 1970s,” says Teh.

On the outlook of Malaysia’s property market this year, Teh says it has definitely improved.

“Our launch of the second phase of Five Stones (a high-end condominium in Petaling Jaya) was very well received. The GDV for Five Stones is RM420mil and we have achieved 97% of the GDV. So things are definitely moving in the right direction,” she says.

On the company’s market focus, Teh says all its developments have been high-end projects.

“This ties in with our development concepts which focus on smaller scale, more private developments. For the moment, we will continue to focus on this type of products,” she says.

“We would like to focus on developing here (Malaysia) and in Singapore for now. However, we will look into other countries if the opportunity arises and when the time is right,” says Teh.

SDB began way back in 1962 when it was incorporated as Selangor Dredging Ltd. In 1964, the company changed its name to Selangor Dredging Bhd upon listing on the main board of the Kuala Lumpur Stock Exchange.

For over two decades, the company’s sole business was tin mining, operating two dredges in Dengkil.

In the early 1980s, SDB began to put in motion a plan for diversification. This led to the company’s involvement in various activities including hardware manufacturing and retail manufacturing of tyre rims for national car Proton and Perodua.

In 1985, Wisma Selangor Dredging, the company’s first property was completed and in 1997, SDB’s hotel property was completed. After a period of consolidation, which was completed in 2004, SDB is now fully a property company, principally involved in hotel, property management and leasing and property development.

By The Star

Listing boost from CapitaMalls

Singapore's CapitaMalls Asia Ltd may raise up to RM995 million from the listing of its Malaysian assets in a real estate investment trust on the Main Market of Bursa Malaysia.



The listing will help the company accelerate growth of its shopping mall business in Malaysia, as the property trust will provide direct access to both the domestic and international capital markets.

CapitaMalls Asia told the Singapore Exchange (SGX) yesterday that it had received the approval from Malaysia's Securities Commission (SC) to list CapitaMalls Malaysia Trust (CMMT), which will hold the company's three Malaysian shopping malls.

They are Penang's Gurney Plaza, Sungei Wang Plaza in Kuala Lumpur and The Mines in Seri Kembangan, Selangor - with a total property value of RM2.13 billion and total net lettable area of 1.88 million sq ft.

However, the decision on when to list the REIT will also depend on several factors, including prevailing market conditions.
The listing is for 1.35 billion CMMT units, of which 786.52 million units, or 58.26 per cent, will be offered to Malaysian and foreign institutional and other investors as well as Malaysian retail investors.

CapitaMalls Asia will retain an interest of 33.00 per cent to 41.74 per cent in CMMT after the offer, dependent on whether an over-allotment option is exercised.

Two cornerstone investors, the Employees Provident Fund and Great Eastern Life Assurance (Malaysia) Bhd, have committed to subscribe 90 million units, or 11.4 per cent, of the total units offered.

They will pay RM1.10 per unit or the institutional price, whichever is lower. The estimated distribution yields for 2010 and 2011 are 6.5 per cent and 6.8 per cent respectively.

While no definitive price has been fixed, the company could raise some RM995 million based on a price of RM1.10 per unit if CapitaMalls Asia chooses to retain an interest of only 33 per cent.

The trustee for CMMT is AmTrustee Bhd.

Malaysia is a key growth market for CapitaMalls Asia and the third largest contributor to the company's earnings before interest and tax for the financial year ended December 31 2009, contributing S$52.4 million.

The company said that CMMT will be Malaysia's largest listed "pure-play" shopping mall REIT by market capitalisation and property value.

The REIT will be CapitaMalls Asia's designated listed vehicle to hold its stabilised Malaysian retail assets as the company seeks to capitalise on acquisition opportunities in Malaysia.

Business Times reported recently that CapitaMalls Asia plans to invest some RM3.5 billion in Malaysia over the next two to three years to buy existing malls and build new ones.

"The planned listing of CMMT is part of the company's strategy to list in the home markets of our assets, and to recycle capital for reinvestment. It will enable us to accelerate our growth in Malaysia, and develop fee-based income for the company," said CapitaMalls Asia chief executive officer Lim Beng Chee in the statement yesterday.

This is the second REIT that CapitaLand Group is sponsoring in Malaysia, the first being Quill Capita Trust which was listed in 2007.

By Business Times

CapitaLand plans major business boost in Vietnam

HANOI: Southeast Asia's largest property developer, Singapore-based CapitaLand, says it plans to increase its assets in Vietnam tenfold and is building thousands of new homes.

"Vietnam has been earmarked as the group's most important overseas market in Asia, after China," the company said in a statement.

The firm will invest S$299 million (S$1 = RM2.38), and is looking to hold ten percent of its assets in the country within the next three to five years, said Chen Lian Pang, chief executive officer of CapitaLand Vietnam Holdings.

"The real estate market is supported by the country's strong economic growth, rapid urbanisation, and a young and growing population," said CapitaLand, which is building more than 4,000 residential units in Vietnam.
It says it is the largest owner-operator of international serviced residences in the country, with five under the Somerset brand and three others being developed under contracts.

Vietnam has a population of almost 90 million people.

The economy grew by 5.32 per cent last year despite the global economic and financial crisis.

Prime Minister Nguyen Tan Dung told global business leaders on Sunday that the economy is expected to expand 6.5 to 7 per cent this year, against a government target of 6.5 per cent.

Singaporean firms are among the major investors in Vietnam.

By AFP

Bolton expects strong profit growth this year

PETALING JAYA: The property market looks pretty strong this year partly because access to financing is still “relatively good”, said Bolton Bhd executive chairman Datuk Azman Yahya.


Datuk Azman Yahya (right) posing with Bolton Bhd executive director Chan Wing Kwong at the newly launched Bolton Studio.

He said the company planned to launch three big projects this year.

The company aims for RM500mil sales in the financial year ended March 31, 2011. Bolton recorded revenue of RM257.5mil for FY10.

“We have seen unprecedented demand for our properties; even the projects we haven’t launched,” Azman told StarBiz after the launch of Bolton Studio yesterday.

Bolton has said it planned to launch a mix residential, retail and commercial projects worth about RM1bil this year.

“Profit growth will be reasonably strong compared with last year as things are looking pretty rosy for the time being,” Azman said.

For FY10, Bolton charted a 51% hike in net profit to RM27.7mil compared with RM18.3mil in FY09

On its newly-launched sales gallery Bolton Studio, Azman said the company hoped to provide its customers additional convenience by having a property showcase under one roof.

“We plan to replicate this sales gallery concept at our township development of Taman Tasik Prima Puchong. Even as we speak, the finishing touches are being put to Bolton Studio Taman Tasik Prima which is expected to be opened by the end of the month,” he said.

He said due to the gallery’s easy accessibility from Kuala Lumpur, Subang Jaya and Shah Alam via well-connected highways, it had since its April opening attracted many curious passer-bys which had resulted in positive sales enquiries.

With a built-up area of about 8,000 sq ft, the gallery features scale models of Bolton’s latest high-end developments of sixceylon, 51 Gurney and Arata.

Each scale model is equipped with a touch screen terminal whereby users can browse and experience a 3-dimension walk-through and find out more information about the respective developments.

Bolton Studio also showcases a live show unit of sixceylon, a 33-storey condominium in Bukit Ceylon featuring 215 units.

The 696 sq ft fully-furnished show unit provides customers with a functional idea on ways to optimise small-sized units to their full potential.

By The Star

Rahsia Estates plans high-end developments

PROPERTY developer Rahsia Estates Sdn Bhd, a subsidiary of Riverbank Suites Sdn Bhd, has chosen Langkawi for its newest project called Rahsia Estates Residences & Spa Langkawi.

Group Chief Executive Officer Hanizah Tun Abdul Hamid said the gross development value would be approximately RM250 million while the total cost RM180 million.

"It will be parceled into four different precints with various types of resort properties comprising a niche boutique-style hotel offering 18 luxury villas, a five-star hotel complex with 110 club suites, and 31 cabana villas positioned as prime residential choices," she said.

She told this to reporters after the Memorandum of Agreement (MOA) signing ceremony between Rahsia Estates and Asian Finance Bank Bhd (AFB) here Friday.

The MOA between AFB and Rahsia Estates is a strategic partnership whereby the bank will be introducing the property to local and international investors interested in high-profile properties in prime locations.

AFB, a full-fledged Islamic bank, is backed by Qatar Islamic Bank, RUSD Investment Bank Inc of Saudi Arabia and Global Investment House of Kuwait.

Present at the event were Deputy Tourism Minister Datuk Dr James Dawos Mamit and AFB Chief Executive Officer Datuk Mohamed Azahari Kamil.

The resort, sprawled across 6.9 hectares of undulating land facing the Andaman Sea and Pulau Dayang Bunting, was set to be Langkawi's first niche mixed residential and commercial development, Hanizah said.

"The development will abide and follow the guidelines as laid out by the Green Building Index once operational by the year 2014.

"It stands to become one of Langkawi's award-winning landmarks, offering luxurious accomodation, and top-rated customer services within a gated community and security service.

"As the economic climate is on a recovery trend, Rahsia Estates notes the demand for such a mixed-property development project. This will appeal to discerning tourists who enjoy a certain lifestyle, as well as second home-buyers wishing to set up home base and live in the island, particularly, those who are participating in the Malaysia-My-Second-Home programme," she said.

Meanwhile, Azahari said he had confidence in Rahsia Estates' resort project in Langkawi eventhough the property market was currently "soft".

"The company has secured one of the best locations on the island that stands to ensure the development's successful completion and visitors' satisfaction.

"The bank believes that property transactions will start to move upwards in the near future since there are positive signs of recovery," he said.

He said Rahsia Estates Residences & Spa Langkawi would become the most attractive and rare property jewel to be acknowledged as one of the nation's luxurious property resorts and one of the iconic resorts of Langkawi.

"The bank's strategy is to market the property to its Middle Eastern network to take advantage of the potential of this exquisite property development in the region," he said.

The bank had already identified potential buyers from the Middle East, he added.

By Bernama

'City of Malaysia' to rise from Sg Besi airport site

The Sungai Besi airport in Kuala Lumpur will be developed into a green mixed-use development, which will feature a commercial hub.



Defence Minister Datuk Seri Ahmad Zahid Hamidi said the new development area will be known as "City of Malaysia" and will be jointly developed by Middle Eastern investors including the Qatar Investment Authority and 1Malaysia Development Bhd.

"We have decided to move the Royal Malaysian Air Force (RMAF) airbase now occupying the land to another area, which will be announced by the Prime Minister at a later date. We are not sure when the move will take place yet. But they will be moving lock, stock and barrel to a new location," he told a press conference after presenting the 50 keys to new homeowners by the Lembaga Tabung Angkatan Tentera (LTAT) in Bukit Jalil, Kuala Lumpur yesterday.

He added that LTAT will not have any stake in the new commercial development that is to take place at the Sungai Besi airport.
"We are also not sure when they (LTAT) are going to move out. All these things are being ironed out. But moving is not a problem because LTAT has enough landbank for relocation," Ahmad Zahid said.

He said the 460ha land is owned by the federal government through an entity know as "Perusahaan Tanah Persekutuan".

Meanwhile, Ahmad Zahid said delivery of the Airbus A400M has been delayed to 2015.

Malaysia had placed its order in 2005 for the four planes originally due to be delivered in 2013.

"Because they will be delivered at a later date, we are allowed to defer our payment. If not, the progressed payment was supposed to start this year," he added.

By Business Times

UEM Land to step outside Nusajaya

PROPERTY developer UEM Land Holdings Bhd wants to expand its landbank beyond Nusajaya in Johor to include places like the Klang Valley and Penang to provide a steady income stream.

The company has RM250 million to spend after it exercised its rights issue in April, which saw RM970 million being raised. Part of the proceeds from the exercise were used to repay debt and for working capital.

UEM Land plans to launch its maiden project outside Nusajaya in Cyberjaya, Selangor, by the end of this month. Dubbed "Symphony Hill", the 39.7ha development, with a gross development value of RM1.1 billion, will be developed in at least six phases over the next 10 years.

"We will develop according to market demand. If there is more demand, we might not need to wait until six phases," said managing director Datuk Wan Abdullah Wan Ibrahim after the company's annual general meeting in Kuala Lumpur yesterday.
UEM Land is in talks with certain parties to develop land in the Klang Valley, but has yet to finalise anything.

"We want to make UEM Land a national player in the property market and for this to happen, the company must have activities and exposure outside of Nusajaya," he said.

UEM Land is the developer of Nusajaya's main features such as the state administration complexes of Kota Iskandar, Puteri Harbour, Southern Industrial and Logistics Clusters and Alfiat Healthpark and residences.

The company has 3,400ha of undeveloped land in Nusajaya, which is targeted to be developed by 2025.

For its financial year ended December 31 2009, it posted a 54 per cent jump in net profit to RM115.6 million on revenue of RM403.1 million.

By Business Times

52 high-impact projects

MALAYSIA has identified 52 high-impact projects worth RM63 billion to be carried out by public-private partnerships under the 10th Malaysia Plan (10MP).

The projects, which include the building of highways and power plants, are expected to drive the economic transformation agenda.

"This new wave of public-private partnership (PPP) will ensure equitable sharing of risks and returns," Prime Minister Datuk Seri Najib Razak said in his speech during the tabling of the 10MP in Parliament yesterday.

The projects include seven highways at an estimated cost of RM19 billion. Among them are the West Coast Expressway, Guthrie-Damansara Expressway, Sungai Juru Expressway and Paroi-Senawang-KLIA Expressway.
Companies seen benefiting from these highway projects include Gamuda Bhd, IJM Corp Bhd, WCT Bhd and Mudajaya Bhd.

Other projects include two coal-powered electricity plants that cost an estimated RM7 billion and development of the Malaysian Rubber Board's land in Sungai Buloh, Selangor, at a cost of about RM10 billion. The land is about 1,337ha.

Najib said the private sector will also get the chance to take part in major projects led by government-linked companies, such as the redevelopment by 1Malaysia Development Bhd of the Sungai Besi Airport area and a new international financial district in Kuala Lumpur.

Other projects include construction of a liquefied natural gas regasification plant by Petroliam Nasional Bhd in Malacca (about RM3 billion) and two aluminium smelters in the Sarawak Corridor of Renewable Energy (about RM18 billion).

Analysts said they had expected more big projects to be announced under the PPP, but felt that it was nevertheless a good start. The value of the projects is three times more than the RM20 billion Private Finance Initiative scheme under the 9MP, they noted.

(The full list of projects under the 10MP is expected to come out in August.)

The analysts said that the main concern now was funding and execution and, in some cases, tariff.

Many felt that it was important for the government to ensure that the projects roll out within the stipulated five-year time-frame and did not encounter delays once the deadlines were set.

"Many of the foreign investors I spoke to today were sceptical as to whether some of these projects would actually happen, seeing as some under the 9MP were not carried out.

" If they do happen, however, it would be great for the construction sector, and the government would benefit as well," said a construction analyst from a foreign research firm, who declined to be named.

By Business Times