Mutiara Goodyear plans RM1.6bil projects

Property developer sees timing right for high-end development

KUALA LUMPUR: Property developer Mutiara Goodyear Development Bhd targets to launch several high-end property projects with a total gross development value (GDV) of about RM1.6bil in the next 12 months.


Hamidon Abdullah says the Malaysian property market is on an upward trend.

Executive chairman Hamidon Abdullah said the Malaysian property market was on an upward trend and the timing was just right for the launch of its matured projects.

Hamidon Abdullah said the property projects that would be launched (in phases) were the Nadayu Melawati high-end property development comprising luxury bungalows, semi-detached homes, super links and commercial units (GDV: RM850mil).

The project is slated for completion by 2012.

Other property projects to be launched next year are the Nadayu 92 Kajang (GDV: RM250mil) and Nadayu 28 Sunway (GDV: RM300mil).

Hamidon said the company would launch another property project known as Nadayu Penang (GDV: RM450mil) by next year.

Interestingly, Nadayu Penang is a property project under a 50:50 equity partnership with Affin Bank Bhd.

Hamidon said that with Affin Bank as a partner it would place the company in a stronger financial position.

“All these property projects will keep us busy for several years,” he said after Mutiara’s AGM yesterday.

Hamidon said the company’s high-end property project this year – Prima Avenue, with a GDV of RM120mil – had been completely sold out and slated for completion in the first quarter 2011.

On the company’s performance, Mutiara executive director Lim Beng Guan said the company had taken the option of early adoption on issues of Committee Interpretation 15 (IC 15), which essentially recognises revenue based on completion of project as against the previous practice of percentage of completion.

“If we had not early adopted IC 15 and revenue recognition based on percentage of completion of project, Mutiara’s revenue and net profit for the financial year ended April 30, 2010 (FY10) would have been RM124.2mil and RM17.7mil respectively,” Lim said.

Mutiara recorded a net profit of RM3.2mil and revenue of RM52.6mil for FY10.

Earnings per share for the year under review stood at 1.4 sen and net assets per share was RM1.35.

On the offer of 97 sen per share to buy back Mutiara’s shares not held by Atis IDR Ventures Sdn Bhd, a company that currently holds a 52% stake in Mutiara, Lim said Mutiara shareholders were told by their independent adviser PM Securities Sdn Bhd to reject the offer.

“Some shareholders had accepted the 97 sen per share offer, while others had chosen not to do so. So long as Mutiara is transparent, shareholders can decide on their own accord,” Lim said.

The first closing date for the offer is Nov 8.

By The Star

SunCity mulls over new projects for REIT

PETALING JAYA: Sunway City Bhd (SunCity) is mulling over office and retail projects to be nurtured into yield-accretive assets which can later be injected into the Sunway real estate investment trust (REIT).

The listing of Sunway REIT on July 8 involved the injection of eight assets – Sunway Pyramid Shopping Mall, Sunway Carnival, SunCity Ipoh Hypermarket, Sunway Resort Hotel & Spa, Pyramid Tower Hotel, Sunway Hotel Seberang Jaya, Menara Sunway and Sunway Tower.

The listing exercise raised some RM520mil for SunCity’s project development activities, including land purchase.


Ngeow ... ‘We want to build up Bandar Sunway into a location of choice for quality offices.’

SunCity property investment managing director Ngeow Voon Yean said the divestment and unlocking of the value of the assets marked a new chapter for SunCity.

“We are now looking for opportunities in property development or investment to venture into. In the last two years, the ratio of earnings between investment and development property was about 60:40, but post-REIT, it should be around 50:50,” Ngeow told StarBiz.

Besides distribution income from its 37% stake in Sunway REIT, SunCity can also channel the funds raised from its assets divestment to other income-generating activities.

It recently paid RM129mil to acquire an additional 45% stake in its 51%-owned unit, Sunway Lagoon Sdn Bhd.

Ngeow also said the funds would be used to develop more office blocks and retail-related projects. There are 100 acres still undeveloped in the 800-acre Bandar Sunway Integrated Resort, and SunCity also has other smaller parcels of land in Kuala Lumpur.

He said the first project kicked off The Pinnacle in Bandar Sunway, a 25-storey corporate office block with net lettable area of 560,000 sq ft that was scheduled for completion by 2013.

Next up would be the development of a parcel of land beside Sunway Pyramid Shopping Mall. Currently referred to as SP3, this would be a retail and serviced apartments development with vehicular and pedestrian links to the mall.

“The supply of Grade A and international standard office and commercial space in this part of the Klang Valley is still in short supply. We want to build up Bandar Sunway into a location of choice for quality offices to attract blue chip office tenants here,” Ngeow added.

He said the new state-of-the-art office and commercial buildings would qualify as green and sustainable buildings. “The aim is to integrate and link all the office and retail complexes in Bandar Sunway with covered walkways to make them pedestrian-friendly and promote more walking instead of driving within the township. This will lower the carbon footprint of the township and is also in line with the LOHAS philosophy that Sunway has embraced from the start, ” he added.

LOHAS (Lifestyles of Health and Sustainability) is a term that describes the market and lifestyle of consumers interested in issues of health and fitness, personal development, the environment, sustainable living and social justice.

Ngeow said a new commercial project now underway was Sunway Velocity in Cheras, comprising office towers, serviced apartments, shoplots and a shopping mall. The RM1.5bil project on 22 acres will be completed in 2015. It will have a total net lettable area of 850,000 sq ft and gross development value of RM1.5bil.

SunCity also plans to build a 27-storey office building with a net lettable area of 350,000 sq ft, Sunway Tower, in Jalan Ampang, Kuala Lumpur. Plans for the project on a one-acre site are still being firmed up. “We have a couple of other projects on the drawing board and will keep our project pipeline going for synergistic growth between the various divisions of SunCity,” Ngeow said.

By The Star

SunCity unit in JV for RM4.3bil project in China

PETALING JAYA: Sunway City (S’pore) Pte Ltd (SCS), a wholly owned subsidiary of Sunway City Bhd (SunCity), has entered into a joint venture to develop a project with an estimated gross development value of RM4.3bil in Sino-Singapore Tianjin Eco-City, China.

SunCity told Bursa Malaysia yesterday that SCS had signed an equity joint-venture (EJV) contract with Sino-Singapore Tianjin Eco-City Investment and Development Co Ltd (SSTEC) to set up a joint-venture firm for developing 27.96ha in the township.

“The preliminary feasibility study of the proposed development features mixed residential and commercial development complemented by integrated and high quality amenities,” it added.

SunCity said the proposed development would span five years with the earliest start in March 2011 and an expected completion in mid-2015.

SCS will be the majority shareholder of the EJV company.

SSTEC, the master developer for the Tianjin Eco-City, is a 50:50 joint venture between a Chinese consortium led by Tianjin TEDA Investment Holding Co Ltd and a Singapore consortium led by the Keppel group.

By The Star

Sime reports brisk sales in 3 townships

Sime Darby Property Bhd is achieving a high rate of sales for three townships -- Denai Alam in Shah Alam, Bandar Bukit Raja in Klang and USJ Heights in Subang Jaya.

The three phases of terraced houses at Denai Alam boasted an average 85.6 per cent take-up rate, while the two phases of Bandar Bukit Raja averaged 93 per cent take-up, it said in a statement today.

The four recent phases at the USJ Heights averaged 90 per cent take-up, with one phase sold out within three months from launch, it said.

Managing director Datuk Tunku Putra Badlishah said the trio of recent success stories "speaks volumes for the resilience of Kuala Lumpur's property market".

"The sales achieved at the three townships demonstrates the continued strong demand for landed property in well-planned communities within the Klang Valley," he said.

Going forward, he said that there will be new two launches in USJ Heights and a launch of Lavender Park in Denai Alam, both scheduled for next month.

By Bernama

MK Land seeks cheap loans for Bangalore project

PROPERTY developer MK Land Holdings Bhd is seeking cheap loans from Exim Bank to develop affordable housing in northern Bangalore with India's Embassy Group.

The project, with gross development value of around RM4 billion, is set to be undertaken by MK Embassy Land Sdn Bhd, in which MK Land and Embassy Group hold 47.5 per cent each while MKN Embassy Development Sdn Bhd has 5 per cent.



"I hold a 5 per cent stake in the project. We have been invited by our partner Embassy Group to replicate the low-medium-cost model of Damansara Damai in Bangalore," executive chairman Tan Sri Mustapha Kamal Abu Bakar said.

"The joint-venture company will buy land from Embassy Group. With that as collateral, we will borrow money from Exim Bank, at a low payback rate ... as low as 4 per cent," he said.
Mustapha Kamal was speaking to reporters after MK Embassy Land sealed a development agreement with NAM Estates Pvt Ltd, a unit of Embassy Group, in Putrajaya yesterday.

He said the joint-venture company was buying the 185-acre site from Embassy Group at RM2.3 million an acre.

The low-cost apartments will be in the range of 660-880 sq ft and priced between RM115,000 and RM175,000 each.

Since the new township is 8km away from the new Bangalore International Airport, the apartment blocks will be limited to eight storeys.

"We'll launch this project as soon as we receive the approvals from the authorities in India," Mustapha Kamal added.

By Business Times

Sunrise aims to sustain revenue growth

Sunrise Bhd hopes to achieve sustainable profit and revenue growth for financial year ending June 2011.

"We have good products for us to be sustainable and it will allow us to further grow further," executive chairman Datuk Tong Kooi Ong told a media briefing after the company's annual general meeting in Kuala Lumpur today.

Sunrise's pre-tax profit for financial year ended June 30, 2010, fell to RM180.876 million from RM210.911 million in the same period of 2009.

Revenue declined to RM590.742 million from RM803.922 million previously.

Tong said Sunrise would launch the second phase of Quintet in Richmond, Canada sometimes in February or March next year.

"The first phase was launched in early October.

"The gross development value (GDV) of the project is about C$400 million (C$1=RM2.92)," he said.

Sunrise, he said, would launch the MK 20, a mixed development along Jalan Kiara, consisting mostly of condominiums, serviced apartments and some retail units, in the middle of next year.
MK 20 has a GDV of about RM1 billion, he said.

Tong said Sunrise would also undertake another project, a landed and gated residential development in Kajang, Selangor, which is located near The Mines.

"The 23.3-hectare development involves an innovative concept of homes, beautiful landscape and facilities.

"The GDV of this project is about RM500 million," he said.
He said Sunrise would also venture into the hospitality business in operating serviced apartments.

By Bernama

Four projects for Sunrise next year

PETALING JAYA: Property developer Sunrise Bhd plans to launch four projects with a total gross development value (GDV) of RM3.2bil next year.

This will support expectations of turning in a better financial performance in the current financial year ending June 30.

Executive chairman Datuk Tong Kooi Ong said the immediate project to hit the market would be the Solaris Tower with a GDV of RM480mil by this year or early next year.

“Next would be our project in Vancouver, Canada- the Quintet- where the launching of the second phase is expected to be in February or March next year.

“We already launched the first phase last month and all units were sold out much faster than expected. The Canada project has a total GDV of 400mil Canadian dollars,” he said.

By middle of next year, Sunrise will unveil its MK20 with a GDV of RM1bil, a build-and-sell mixed development project in Mont’ Kiara.

“Finally, we should see the launch a premium landed development in Kajang, next to the Mines Resort with GDV of around RM500mil by year-end,” Tong told reporters after the company’s AGM today.

By The Star

Plenitude sees RM333m from new projects

Property developer Plenitude Bhd expects its new project launches to yield an estimated gross development value of RM333 million for the financial year ending June 30, 2011.

Its executive chairman Elsie Chua said the company's projects include Taman Desa Tebrau in Johor, Taman Putra Prima in Selangor, Bandar Perdana and Lot 88 Perdana Heights in Sungai Petani, Kedah.

"We will continue to be cautious of the economy and launch our projects when the timing is right," she said after the company's annual general meeting (AGM) in Kuala Lumpur today.

Chua said Plenitude plans to launch condominium projects located at Tanjung Bungah and in Batu Ferringhi, Penang, soon and its first township in Balik Pulau.

She said the company will focus on building attractive and affordable houses priced above RM300,000 due to encouraging signs of a booming property market.

"We are very upbeat on future projects in Penang but also cautious about the rising price of land and building materials which would inadvertently raise the pricing of properties," she added.

Plenitude also aims to launch its first bungalow development, Tebrau Mutiara at Taman Desa Tebrau, Johor Baru soon, she added.

Plenitude continues to maintain a healthy balance sheet whereby its net cash position rose to RM325 million for the financial year ended June 30, 2010 from RM246 million previously.

It also recorded RM113.55 million in higher pre-tax profit for the financial year ended June 30, 2010 compared with RM109.259 million last year, while revenue increased to RM349.713 million from RM282.756 million previously.

According to Chua, the company is looking at expanding its landbank in the Klang Valley as well as the region.

At the AGM, the shareholders also approved a first and final single tier tax exempt dividend of 15 per cent or 15 sen per share for the financial year ended June 30, amounting to RM20.25 million to be paid out by November 12.

It also proposed and shareholders approved, a bonus issue of 135 million new ordinary shares of RM1 each to be credited as fully paid up on the basis of one bonus share for every one existing share, held during the extraordinary general meeting which was held after the AGM.

By Bernama

Mutiara Goodyear bullish on outlook

Property developer Mutiara Goodyear Development Bhd has lined up four projects worth RM2.1 billion for the next 12 months to expand.

Executive chairman Hamidon Abdullah said he was bullish on next year's outlook, describing the market as buoyant.

Mutiara's new projects in Bandar Sunway, Kajang and Cyberjaya in Selangor and in Butterworth, Penang, are gated communities targeting the middle-to upper-income groups.

They are expected to appeal to buyers looking for a safe and secure environment.

"In my belief, properties are not being offered to the public in a wholesome manner. We have to create a community with proper amenities and landscaping. Then the products will move.
"I do not expect a bubble if we put decent properties in the market for people to live in rather than flip," Hamidon said yesterday in Kuala Lumpur after the company's shareholder meeting.

Mutiara is launching flagship project Nadayu 92 in Kajang, Nadayu 28 in Sunway, Nadayu 290 in Butterworth and an un named project in Cyberjaya.

Hamidon said Nadayu 92 is its attempt to deliver an affordable range in a gated environment and is optimistic of a good response.

Hillside development Nadayu 290 will feature three condo-minium blocks with more than 150 units and seven bungalows, worth more than RM400 million.

Nadayu 290 is touted to set a new benchmark for Penang where green technology is concerned.

"We are working with big international names to integrate green technology into the development. It will be a reference project for Penang, placing us on the map with the big boys," Hamidon said.

In the financial year ended April 30 2010, Mutiara posted RM3.2 million net profit on revenue of RM52.6 million.

By Business Times

Hai-O entry into property may add risk: OSK

Hai-O Enterprise Bhd's venture into the property business will add more risk to the group, given that its multi-level marketing (MLM) business is still trying to recover locally, says OSK Research.

"While the venture may help generate future earnings and reduce its reliance on the more volatile MLM business, our concern is that this will further divert its focus on its current businesses and add risk to the group if not executed properly," it said in its research note today.

The research house said apart from the risk of venturing into a non-core property business, in which Hai-O has no expertise, the group's MLM business was still struggling from the impact of more stringent rules on direct marketing.

The property venture is the second non-core business Hai-O has gone into after it diversified into the heat transfer technology in August 2009.

OSK said given the recovery in buying sentiment among Hai-O's members was taking longer than expected (members were ordering less even for the saleable products), the management believed the MLM division would need more than six months to recover.

"Nonetheless, the Hai-O management is confident that with all the measures put in place by the task force set up to beef up performance, its MLM division would regain momentum and continue to drive the group's earnings," it said.

By Bernama

BNM to act on property, if needed: Zeti

Malaysia’s central bank will clamp down on any speculation that threatens to create a property bubble, the central bank chief said today.

Bank Negara Malaysia (BNM) Governor Tan Sri Zeti Akhtar Aziz said the central bank wanted to promote house ownership but it had “wide ranging instruments" to deal with any excesses in the sector.

“For first time houseowners and perhaps even the second one, any new rules would not apply. It would only be for those that want to purchase 10 units at time, I believe that happens sometimes,” she told reporters on today.

“If we consider that there is imminent risk of a property bubble, we will take pre-emptive action. We’re not going to wait for the bubble before taking action.”

Although Asian policymakers are mostly concerned about hot money from developed countries, CIMB notes that Malaysia has the highest household debt in Asia outside of Japan.

It said household debt hit 76 per cent of GDP in 2009 and is expected to ease to 74.6 per cent by the end of this year, making domestic consumption sensitive to further interest rates rise.

House prices in Malaysia rose 32 percent between 2000 and 2009, but some areas of the country have seen a big rise this year.

A condominium near the business district in the capital was recently sold for US$12 million, making it among the most expensive homes sold in recent years, a local newspaper reported in July.

Policymakers in Hong Kong, Singapore and China have imposed measures to calm their heady property markets this year as investment flowed into Asia from developed countries.

Zeti said Asia was well placed to deal with these capital inflows due to better developed financial markets, rigorous surveillance and a larger regulatory policy toolkit.

“We have more rigorous surveillance, we know almost real time about these flows, where they come from and where they are placed, whether equities, bonds or deposits. We are better positioned now to deal with it,” Zeti told reporters.

To a suggestion on implementing a single Asian currency, Zeti said she was not in favour of such a move as the objective of achieving greater prosperity for the region could be achieved at a much lower cost.

By Reuters

Plenitude to launch seven projects in FY11

KUALA LUMPUR: Property developer Plenitude Bhd plans to launch seven projects in the financial year ending June 30, 2011, which could generate a total gross development value of about RM400mil.

Its executive chairman Chua Elsie said these projects - mix development with a combination of residential and commercial properties - were located in Johor, Penang, Sungai Petani and Selangor.

“We are upbeat on our future projects in Penang and will be launching our next condominium projects in Tanjung Bungah and Batu Ferringhi,” she said at a press conference after the company’s AGM and EGM today.

By The Star

On the fast track

Several companies made presentations to the National Key Economic Area (NKEA) lab about three months ago on the Kuala Lumpur-Singapore high-speed train project, industry sources say.

Among them were YTL Corp Bhd and Hartasuma Sdn Bhd, which was said to be partnering a Chinese state-owned firm.

Hartasuma, a Class "A" Bumiputera contractor, is a member of Ara Group, founded by Datuk Aisamar Kadil Mydin Syed Marikiah and Tan Sri Ravindran Menon, director and executive director of Subang SkyPark Sdn Bhd respectively.

Its track record includes repair and overhaul of passenger coaches for KTM Bhd and civil works (Kuala Kubu Baru-Tanjung Malim Halt) for the Rawang-Ipoh electrified double tracks.

Business Times understands that some of the companies have proposed to undertake the high-speed rail project for between RM8 billion and RM14 billion.
A government source said the project could be worth RM10 billion to RM12 billion and that it would take five to eight years to complete as it will cover 300km.

The source said that cost would depend on the type of technology deployed, whether it is magnetic levitation (maglev) or conventional, and how the tracks are aligned.

Maglev will cost more than conventional, but requires less maintenance, is safer and faster. The system also uses more electronics and essentially involves "non-contact electromagnetic levitation".

"If the alignment is built along the coastal road, then it would involve a lot of land acquisition and this would add to the cost," he said.

The source added that the project would depend on a study by the Treasury, the Performance and Delivery Unit (Pemandu) and other government agencies.

It is believed that Pemandu, which is leading the NKEA lab, has invited officials from the Ministry of Transport, the Land Public Transport Commission (Spad) and City Hall to attend briefings held separately by the companies.

The high-speed train project was mooted by YTL in 2006. It had proposed to undertake the project for RM9 billion, partnering Germany's Siemens, a global expert in high-speed rail technology.

The YTL proposal, however, was shot down because of the high cost involved.

Malaysia is mulling over a high-speed rail linking Kuala Lumpur and Singapore that will cut travel time between the two cities to 90 minutes.

Plans would require the approval of Singapore, which has expressed its interest in the project. However, the government has not given a firm approval, the source said.

By Business Times

Times Avenue units 70pc snapped up before Nov launch

TIMES Avenue, a RM160 million office and retail project on Jalan Imbi, Kuala Lumpur, has been 70 per cent sold, one month ahead of its launch in November.

The space was bought mainly by a Hong Kong private equity group, said Datuk Lennon Tan, founder and chairman of developer Takashimaya Construction & Development Sdn Bhd.

Times Avenue is located next to Berjaya Times Square. The 15-storey building has nine levels of executive office suites, three floors of retail lots, two levels of penthouse offices and a sky lounge. Construction will start in December and is due for completion by end-2013.

Tan plans to sell the remaining space to local investors.

"I am bullish on the market for office space and expect the whole project to be sold by the end of this year," Tan said yesterday in Kuala Lumpur, after unveiling the project.

Times Avenue is the first commercial building to feature a high-tech multi-level automated valet car parking system. This is its selling point.

The RM10 million system uses technology from South Korea and is widely used in Europe.

It allows customers to initiate their vehicle retrieval simply by scanning their bar coded valet parking ticket at the built-in reader. Their vehicle is automatically stacked vertically alongside the building, saving them time to look for parking.

"We hope to set a new benchmark in office space where security and safety is concerned. We hope land owners and developers will look into the system, which is a high selling point for their projects," Tan said.

Takashimaya was set up in 2004 by Tan and Fanny Foo Youe Moi, an entrepreneur.

Tan said Takashimaya has no links to Berjaya Group, or its founder Tan Sri Vincent Tan.

By Business Times

Cagamas may issue another sukuk worth up to RM2b

NATIONAL mortgage company Cagamas Bhd will issue another landmark sukuk, with size estimated to be between RM500 million and RM2 billion.

Chief executive officer Steven Choy said the size of the Islamic debt paper will depend on the home loans that banks sell to Cagamas.



"If they sell us big loans, it will be bigger, if small loans, it will be small," Choy told reporters on the sidelines of the Global Islamic Finance Forum in Kuala Lumpur yesterday.

On the significance of the latest debt paper, Choy said: "We haven't worked out yet on the assets that are coming in, so it is not the right time to talk about it."

It is understood that the sukuk will be launched by the year-end.

Sources told Business Times that the latest Cagamas sukuk will be based on Ar Rahnu concept, or pledging.

"It is termed as covered sukuk (an Islamic version of covered bond)," one of the sources said.

Covered sukuk is an Islamic version of covered bonds, which are debt securities backed by cash flows from mortgages or public sector loans. They are similar in many ways to asset-backed securities created in securitisation, but covered bond assets remain on the issuer's consolidated balance sheet.

Business Times had earlier reported that the new Cagamas sukuk will not incorporate "doubtful" principles, just like its previous benchmark Sukuk Al-Amanah Li Al-Istithmar (Sukuk ALIm), launched in mid-July.

While Sukuk ALIm was designed to meet the requirements of broader investors especially from the Middle East, Cagamas' new sukuk is expected to attract local institutional investors.

Last year, the country's biggest buyer of home loans sold RM11.3 billion worth of bonds, down by more than half from the record RM25 billion in 1999. About 40 per cent, or RM4.3 billion, were sukuk.

Cagamas issues bonds or debt securities to finance the purchase of housing loans from banks, freeing up lenders to give out more loans.

It is the second biggest issuer of debt papers after the government and carries the highest credit rating of "AAA" from local rating agencies. This means that its paper is highly sought after by investors because the probability of a default is very low.

By Business Times

KLIB unit to sell land for RM58mil

PETALING JAYA: Equine Capital Bhd’s wholly-owned subsidiary Kuala Lumpur Industries Bhd (KLIB) has proposed the disposal of four parcels of land together with Wisma KLIH for up to RM58mil cash to Wonderful Vantage Sdn Bhd.

In a filing with Bursa Malaysia, Equine said the land was with a 14-storey purpose built office building known as Wisma KLIH located at Jalan Bukit Bintang, Kuala Lumpur.

It said the disposal consideration comprises RM48mil for the disposal of the property and RM10mil for renovation and refurbishment of the property, subject to the terms of the renovation and refurbishment option.

By The Star

Commercial property sales rebound in 3Q

NEW YORK: Two of the world's largest commercial real estate services companies reported sharply improved earnings on Tuesday, Oct 26, fueled chiefly by a pickup in building sales and leasing, particularly in the United States.

After more than a year of nearly no activity, US property sales have begun to pick up as buyers and sellers agreed on prices. That helped Jones Lang LaSalle Inc and CB Richard Ellis Group Inc record strong earnings growth in the third quarter.

Boston Properties, which has been on a buying spree over the past couple of months, reported better-than-expected results.

Luxury mall owner Taubman Centers Inc reported earnings that were hurt by an unexpected drop in lease cancellation fees. But the company raised its full-year forecast after sales at its malls rose 13% per square foot.

The slow rebirth of the US commercial mortgage backed securities market (CMBS) and loosening of lending by banks have greatly improved US commercial real estate sales this year. Real Estate research firm Real Capital Analytics expects sales to top US$100 billion (RM310 billion) in 2010, nearly double the US$54.4 billion in 2009.

US companies also have begun to lease more space as they become more confident about the economy.

Sales and leasing transactions are the bread and butter of real estate services companies, providing higher margins than property management or corporate services.

"We've seen sales and leasing improve all year," JMP analyst Will Marks said. "Third-quarter results really picked up from 2009 levels, but they're still nowhere near the levels at the peak."

CB Richard Ellis, based in Los Angeles, posted third-quarter earnings, excluding charges, of US$62.4 million, or 20 US cents per diluted share up from US$21.6 million, or eight US cents a share in the year-earlier quarter.

Analysts on average expected 17 US cents per share, according Thomson Reuters I/B/E/S.

Revenue rose 24% to US$1.3 billion. That was driven in part by a 26% revenue increase from the Americas region, with property sales up 69% and leasing revenue up 36%.

Jones Lang LaSalle posted third-quarter adjusted earnings of US$38 million, or 86 US cents per share, compared with US$27 million or 61 US cents per share in the year-earlier quarter.

Analysts on average expected 95 US cents per share.

Chicago-based Jones Lang LaSalle said its revenue rose 20% to US$708 million. In the Americas, revenue rose 29%, with leasing revenue up 38%, and sales and hotels up 127%.

Taubman reported third-quarter adjusted funds from operations of US$33 million or 59 US cents per square foot compared with a loss of US$67 million, or US$1.26 per share in the year ago period.

Analysts had expected third-quarter FFO of 67 US cents per share. FFO is a real estate investment trust performance metric, which removes the profit-reducing effect of depreciation from earnings.

The company, based in Bloomfield Hills, Michigan raised it 2010 FFO forecast to a range to US$2.77 per share to US$2.82 per share from US$2.65 per share to US$2.75 per share based on improving rents and higher lease cancellation and recoveries.

Boston Properties reported FFO of US$150.8 million, or US$1.07 per share diluted compared with US$158.5 million, or US$1.13 per share.

Analysts expected FFO of US$1.03 per share.

Boston Properties said it expects to report fourth quarter FFO of US$1.09 per share to US$1.12 per share.

The companies reported after the close of the New York Stock Exchange on Tuesday. Jones Lang LaSalle shares closed down 0.7% at US$85.37. CB Richard Ellis shares closed up 0.2% at US$18.90 and were at US$19.06 after hours. Taubman shares closed down 1.1% at US$48.30, and were at US$48.76 in after-hours trade. Boston Properties shares closed down 1% at US$89.87.

By Reuters

SP Setia to launch four residential projects worth RM546mil

The Show Village of Setia Pearl Island

GEORGE TOWN: SP Setia Bhd plans to launch four new residential projects with an estimated gross sales value RM546mil on the island beginning this December and next year.

SP Setia property (North) general manager S. Rajoo told StarBiz that the projects comprised the RM175mil Setia Greens, RM60.5mil Brook Residences, RM170mil Setia V Residences, and the RM139mil Pearl Villas in the Setia Pearl Island scheme.

Setia Greens, comprising 149 three-storey terraces and 18 semi-detached houses with dual frontage in Sungai Ara, would be launched in December.

“The selling price starts from RM918,000 onwards for terraced units with built-up areas ranging from 2,400sq ft and 3,200sq ft.

“The selling price for the semi-detached units, with built-up areas of around 3,300sq ft, is around RM1.6mil onwards,” he said.

Subsequently the group would launch Brook Residences in February 2011 and the Pearl Villas in April, and Setia V Residences in the second half of next year, Rajoo said.

“The Brook Residences in Brook Road, a prime residential area near Jesselton Road, comprises 11 luxurious bungalows priced from RM5.8mil onwards, while the Pearl Villas comprise 35 bungalows priced from RM2.8mil onwards.

“The Setia V Residences project in Kelawei near Gurney Drive, comprising 67 luxurious condominiums, tentatively priced from RM2.8mil onwards,” he said.

Rajoo said Setia Greens would be the northern region’s first Green Building Index-rated project.

“What makes the project unique are the environmental features such as solar water heater, rain-water harvesting system, water efficient fittings, and cool roof system for each unit.

“We are using a special low-volatile organic compound paint for the project,” he said.

Rajoo said these new projects were targeted at the executives working in the south-west district of the island as well as investors.

For the nine months of SP Setia’s fiscal year ended July 31, 2010, the group’s projects from Penang contributed close to RM150mil or about 10% of the RM1.95bil revenue posted for the nine month period.

“We are confident that the contribution from Penang this fiscal year closing Oct 31, 2010 will hit over 10% of the targeted RM2bil revenue of the group.

“Setia Vista, Reflections condominium, and the new semi-detached launches in Setia Pearl Island contributed significantly from Penang,” he said.

Rajoo said Penang would continue to play an important revenue generating role in the group’s property development business.

“We will continue to look for land in prime locations either to develop on our own or on a joint-venture basis,” he added.

Meanwhile, Henry Butcher (Malaysia) Penang director Dr Teoh Poh Huat said high-end properties were still sustainable in Penang, as there were now overseas Malaysians investing in the island’s property market.

“These are overseas Malaysians earning pounds and US dollars, who are buying high-end properties with the view to come home to stay one day.

“This segment is playing an increasingly important role in the Penang high-end property market developed by branded developers,” he said.

By The Star

Naza's Dualis snapped up at launch

NAZA TTDI's Dualis Business Centre units in Seri Kembangan were snapped up barely two hours after its launch over the weekend.

The 32 units of two and two-and-a-half storey semi-detached shop offices are located within the prime residential and commercial area of Equine Park.

They are part of an 8.7 acre mixed development which will also include other components that will be announced and launched at a later date.

Naza TTDI's group managing director, SM Faliq SM Nasimuddin who was present at the launch said, he was encouraged by the response for the shop offices and assured purchasers that apart from living to the company's tagline of delivering the project ahead of schedule, quality will not be compromised.

He said TTDI Dualis Business Centre will be a new lifestyle hub in the area with its modern architecture concept and open space.

The development is an ideal location for offices, banks, showrooms and F&B outlets, he added.

Faliq expects the launch on Saturday to attract a lot interest from buyers with the project's well-planned layout, strategic location and alluring design.

The two-storey shop office built-up starts from 3,472 sq ft with the land area from 2,866 sq ft with prices starting from RM1.5 million.

For the two and half storey shop offices, built-up starts from 4,733 sq ft with land area from 3,587 sq ft. Price for the two and a half storey shop offices starts from RM2 million. The project is expected to be completed in October 2013.

By Business Times

Glomac acquires Suria Stonor condo units

GLOMAC Bhd is buying 18 units of apartment in Suria Stonor Condominium for RM38.41 million as an investment.

It views the property as one with a potential for a quick turnaround, Glomac said.

The purchase is at a discount of 35 per cent to the last transacted price of RM1,000 per sq ft for comparable properties at Suria Stonor.

By Business Times