The stock gained 4.4 per cent to 47.5 sen at 9:19 a.m. local time, set for the biggest gain since Aug. 11.
By Bloomberg
Monday, August 29, 2011
Malton advances on Q4 profit jump
Malton Bhd, a Malaysian property developer, rose the most in more than two weeks in Kuala Lumpur trading after profit in the fourth quarter ended June 30 surged almost fivefold to RM26.8 million from RM5.54 million a year earlier.
The stock gained 4.4 per cent to 47.5 sen at 9:19 a.m. local time, set for the biggest gain since Aug. 11.
By Bloomberg
The stock gained 4.4 per cent to 47.5 sen at 9:19 a.m. local time, set for the biggest gain since Aug. 11.
By Bloomberg
Saturday, August 27, 2011
IGB plans St Giles in Australia
Prime land: The recently purchased Sydney property has a net lettable area of about 60,000 sq ft (5,436 sq m) with three retail floors and 10 upper levels of office space and a basement parking for 16 cars. IGB bought the building from a Charter Hall Group fund. Savills brokered the deal.
IGB Corp Bhd has submitted plans to the Australian authorities to convert a recently purchased office building into a three to four-star St Giles hotel.
Executive director Tan Boon Lee says the purchase of 34, Hunter Street in Sydney, Australia will be its eighth hotel under the St Giles brand. It was purchased at a price of A$36mil and will be given a A$20mil makeover.
“If we can get an average room rate of A$180 to A$200 for the 250-odd rooms, we would be able to get our money back in seven to eight years, which is normal period of investment,” he said. It is expected to be ready in two and-a-half years.
The real estate developer, with interest in hotels and malls has two St Giles hotels each in London, New York and Makati, the Philippines and is building a seventh in Penang.
IGB Corp Bhd, through its associate company St Giles Hotels, bought two hotels in New York City for US$78mil (RM2.55mil) from Starwood Hotels & Resorts Worldwide Inc in June last year to grow its St Giles brand.
The hotels, located in midtown Manhattan, were previously operated by Starwood under the W brand. Among the group's other brands are the MiCasa and Cititel chains.
“We would like our investments in hotels, offices and retail to contribute a third each to our property investment portfolio,” Tan says.
IGB achieved a net profit of RM174mil for financial year 2010, representing a 10% jump from its RM159 mil net profit in financial year 2009. This expansion in its bottom line was mainly due to improved results from property development and property investment as well as management divisions.
The property investment and management divisions contributed 59.2% to IGB's RM719.4mil revenue for the 2010 financial year.
Its hotel and property development segments contributed 28% and 10% respectively.
“Property development is the icing on the cake. When times are good, we will do more. When times are bad, we will acquire land. We have always liked KL,” Tan says.
IGB has its base in Ipoh. It was founded in the early 1960s by two brothers - the late Datuk Tan Kim Yeow and Datuk Tan Chin Nam. IGB's forerunner, Ipoh Garden Sdn Bhd was named after its maiden Ipoh project. It has since transformed itself from being a mere developer into a mega asset-based company involved in various facades of real estate development here and overseas.
On the purchase of 34 Hunter Street, Sydney, Tan said the group would like to develop “the kangaroo route from Britain to Australia.
“Once we have developed the hotel business along that route with Malaysia being the mid-way point, we can talk about (tourism) packages with the airlines. This will help us to promote our hotels from London to Australia,” he says.
IGB is no stranger to Australia. Among its most priced Australian asset at one time was the Queen Victoria Building (QVB) which IGB restored more than 20 years ago. That property later went to Singapore Government's Investment Corp (GIC) when it bought Ipoh Ltd of Australia. QVB was Ipoh Ltd's core asset.
The recently purchased Sydney property has a net lettable area of about 60,000 sq ft (5,436 sq m) with three retail floors and 10 upper levels of office space and a basement parking for 16 cars.
Tan says they will retain the facade of the building but will retro-fit the inside and have between 240 and 270 rooms with windows to every room as it is a stand-alone building located at the corner of Hunter Street and Pitt Street. It is three to four blocks away from the Sydney Opera House and is located mid-way between the Sydney Opera House and the Queen Victoria Building.
“Location wise, it is very strategic. In terms of timing, the local government there is trying to revive the city's night life. Over the last four years, there has been hardly any hotel so ours will be the only one,” says Tan.
He says there are several hotels in the vicinity. This includes the InterContinental Sydney, owned by Mulpha International Bhd, Grace Hotel owned by the Low Yat group, the Grand Hyatt at The Rocks, Radisson and Four Seasons.
“There is no three to four-star hotels in that area, all of them are five-star hotels. Our strategy is to provide a comfortable business class hotel, with a good bath, bed and free Internet facilities. Breakfast will be simple and our rates will be a third lower than those hotels around us.”
On the group's strategy in today's challenging times, Tan says there are plans to acquire other assets, in order to expand its hotel operations and business.
“Our first preference will be hotels. A lot of funds are selling so it is a good time to accumulate assets. If the site is big enough, then we would like to do a mixed development but for that to happen, it has to be about half or three-quarters the size of the Mid-Valley site (which is about 20 ha).
“Mid-Valley took us 15 years. It is not possible to find a piece of land this size in places like London or Sydney but it may be possible in China. Whatever we do, it must be near a local transportation hub,” Tan says.
By The Star
Demand for residential properties boosts UOA Q2 net profit
PETALING JAYA: UOA Development Bhd saw its net profit for the second quarter ended June 30 grew to RM60mil, which represented an increase of 44.6% from the RM42mil recorded in the preceding quarter.
The property development company had earlier told Bursa Malaysia that its revenue in the quarter had grown 18.9% quarter-on-quarter to RM173.33mil. Residential segment contributed most to the company's total revenue during the quarter in review at 59%, or approximately RM101mil, compared with the 25% contribution (or approximately RM36mil) in the first quarter.
“This is in line with UOA's increasing focus to meet the growing demand for residential properties in the Klang Valley,” the company said in a statement.
Going forward, UOA would continue to actively address the growing demand for commercial and residential properties with the development of its land bank that constituted a saleable area of over 1.4 million sq m, including its flagship project, Bangsar South, and other upcoming developments in key locations such as Taman Desa, Sri Petaling, Segambut and Glenmarie that would form a basis for its growth over the next five to seven years.
The company said it would capitalise on its strong balance sheet and continue scouting strategic development lands, while maintaining a focus on strategic locations within the Greater Kuala Lumpur.
By The Star
The property development company had earlier told Bursa Malaysia that its revenue in the quarter had grown 18.9% quarter-on-quarter to RM173.33mil. Residential segment contributed most to the company's total revenue during the quarter in review at 59%, or approximately RM101mil, compared with the 25% contribution (or approximately RM36mil) in the first quarter.
“This is in line with UOA's increasing focus to meet the growing demand for residential properties in the Klang Valley,” the company said in a statement.
Going forward, UOA would continue to actively address the growing demand for commercial and residential properties with the development of its land bank that constituted a saleable area of over 1.4 million sq m, including its flagship project, Bangsar South, and other upcoming developments in key locations such as Taman Desa, Sri Petaling, Segambut and Glenmarie that would form a basis for its growth over the next five to seven years.
The company said it would capitalise on its strong balance sheet and continue scouting strategic development lands, while maintaining a focus on strategic locations within the Greater Kuala Lumpur.
By The Star
What development means to the LDP
TTDI-LDP interchange: It is baffling why the soon to-be-built MRT alignment does not feature in this part of urban development.
Several developments, of considerable scale, will be emerging fairly soon along the Lebuhraya Damansara-Puchong. Some of these developments will be completed in four years, while others will have a longer gestation period.
Four of these projects are being developed by Subang-based developer Empire group. The four pieces of land were purchased from MK Land, who developed Damansara Perdana.
What is visible as one drives along the LDP today is the on-going construction of Empire City on the side of Taman Tun Dr Ismail, Kuala Lumpur. This 23-acre development comprises several high-rise office blocks, serviced apartment blocks, a hotel and a retail area spanning a major portion of the 23 acres and a massive car-park beneath. It is sandwiched between the LDP and tracts of Malay reserved land. Empire City is scheduled to be completed by 2015 and will have about 10 access roads or viaducts leading to and away from.
In Damansara Perdana, on the other side of the LDP, the group has three more pieces of land. Empire Damansara, another mixed development comprising several office blocks, is located next to Metropolitan Square. This is on the outer fringes of Damansara Perdana which sits next to the thriving Kota Damansara township .
The LDP, in other words, besides being a highway, also serves as a sort of border and runs fairly close to the delineation between Kuala Lumpur and Petaling Jaya.
Empire Residence, a high-end gated and guarded development on 19.2ha of land inside Damansara Perdana itself, is being developed together with MK Land in a joint venture. This project will house 750 three-storey units instead of the 3,353 condominium units originally planned.
The Empire group's fourth project is located near the Penchala Toll near MK Land's Flora Damansara. According to an agent marketing one of its projects, the developer plans to fill up a natural lake located on this piece of land. A tertiary development or a resort-like development is being planned. Plans are still hazy.
While the Empire group has set its sights to develop on this side of town, two other developers are also planning their projects further along the LDP heading towards Sri Damansara.
Land & General Bhd (L&G) will be stepping up development of its high-rise condominium projects on 42 acres in the Sri Damansara township. This is expected to be launched towards the end of2011. It is currently known as Meranti and will be built over four phases. About 2,800 units of condominium are being planned.
In Sri Damansara, TA Global will also be offering Damansara Avenue, a 48-acre project comprising several apartment and office blocks, and commercial developments. It is estimated that this will take 10 years tocomplete. There are about four to five blocks of serviced apartments and an equal number of high-rise office blocks.
All these projects will add to the population located along this stretch of the LDP. The majority of the roads accessing these projects, or leading away from these projects, will feed into the LDP. Some will be via the Sg Buloh road. It does seem a scarry propostion for the LDP! One can't help but wonder how the LDP is going to cope with the sure growth in traffic along this short stretch divided by the Penchala toll. As it is, the LDP is terribly congested during peak hours and these develpments are bound to make things worse.
What will it be like in the next couple of years when these projects are ready to host their tenants and owners?
It is also baffling why the soon to-be-built My Rapid Transit (MRT) alignment does not feature in this part of urban development which lies between the PJ-KL border when so many projects have been approved and ear-marked for development.
This takes us to the issue of town and urban planning. We cannot do away with development, modernisationand the pressing need for housing. All these are part and parcel of growth and progress.
But, what the local authorities can do is to consider the pressure such massive projects will add to the road and transport system. Without an integrated public-transportation system, these projects may dilute the livability of the area they are piling their foundations in.
Local authorities and transport planners cannot abdicate their roles as guardians and overseers of this community along that LDP stretch. When planning approvals arrive on their tables, they have to consider these new projects based on what is already existing there. The local authorities have to take into consideration the many condominium developments that are already there, in this case the Damansara Perdana location. They have to consider the limited access into Sri Damansara today and the effects of how two massive projects totalling 90 acres will affect that access.
Assistant news editor Thean Lee Cheng wonders what travelling on the LDP will be like a few years from now.
By The Star
Ibraco to launch next phase of Tabuan Tranquility
PROPERTY developer Ibraco Bhd, which came out of Practice Note 17 (PN17) status three months ago, is capitalising on the high take-up rate of the first two phases of its Tabuan Tranquility project here to launch the next phase of residential development.
Group managing director Chew Chiaw Han said Tabuan Tranquility phase two, which would has more than 255 units of houses, would open for sale before end of this year.
The units are made up of 163 terraced houses, 68 semi-detached homes and 24 detached houses with a gross development value (GDV) of more than RM150mil.
Townhouses will also be built under Phase two but its number has yet to be determined.
“Infrastructure work for phase two development is now underway,” he told StarBizWeek yesterday.
Tabuan Tranquility, a massive commercial, industrial and residential development on 66ha along Kuching-Samarahan Expressway, was unveiled last year under Ibraco's regularisation scheme to take the company out of PN17.
It is the single biggest mixed development ever undertaken by Ibraco, which has built more than 10,000 units of properties in the city over the years.
Tabuan Tranquility, to be developed in five phases up to 2015, will have a total 640 units of double-storey terraced houses, 108 units of semi-detached houses, 60 units of three-storey townhouses, 76 units of four-storey shophouses, 72 units of semi-detached industrial buildings, one office block and a petrol service station.
The entire project has a GDV of RM517mil.
Ibraco was classified a PN17 company after its revenue for the financial year ended Dec 31, 2009 fell below 5% of its paid-up capital. It was uplifted from PN17 in late May 2011.
Chew said all the 76 units of shophouses under phase one, priced between RM1mil and RM1.79mil each, had been sold.
“For phase five residential scheme, 90% of the units have been sold,” he added.
Phase five comprising 204 terraced houses and 38 semi-detached houses is due for completion in November-2012.
Chew said Ibraco would launch a new residential project in Stutong here next month. The project will have 67 units of terraced houses and four units of semi-detached houses with a GDV of 15mil.
On Ibraco's plan to venture into mixed property development projects in Bintulu or Miri, he said the company was still working on the proposal.
The company has earlier identified the land and might carry out the proposed development in joint-venture with the landowner concerned.
To diversify, Chew said Ibraco was studying proposals to go into construction business, both infrastructure and civil building works, for the private and public sectors.
For the quarter ended June 30, 2011, Ibraco posted a pre-tax profit of RM3.75mil on a turnover of RM28.5mil as compared with loss of RM798,000 on revenue of RM676,000 in the same period last year.
In an explanatory note, Ibraco said the group's revenue increased to RM28.5mil against RM19.4mil in the quarter ended March 31, 2011 when revenue came from both sales of inventories and Tabuan Tranquility project.
Chew said for the financial year ending Dec 31, 2011,the group was confident of achieving its projected nett profit of RM12mil.
By The Star
Group managing director Chew Chiaw Han said Tabuan Tranquility phase two, which would has more than 255 units of houses, would open for sale before end of this year.
The units are made up of 163 terraced houses, 68 semi-detached homes and 24 detached houses with a gross development value (GDV) of more than RM150mil.
Townhouses will also be built under Phase two but its number has yet to be determined.
“Infrastructure work for phase two development is now underway,” he told StarBizWeek yesterday.
Tabuan Tranquility, a massive commercial, industrial and residential development on 66ha along Kuching-Samarahan Expressway, was unveiled last year under Ibraco's regularisation scheme to take the company out of PN17.
It is the single biggest mixed development ever undertaken by Ibraco, which has built more than 10,000 units of properties in the city over the years.
Tabuan Tranquility, to be developed in five phases up to 2015, will have a total 640 units of double-storey terraced houses, 108 units of semi-detached houses, 60 units of three-storey townhouses, 76 units of four-storey shophouses, 72 units of semi-detached industrial buildings, one office block and a petrol service station.
The entire project has a GDV of RM517mil.
Ibraco was classified a PN17 company after its revenue for the financial year ended Dec 31, 2009 fell below 5% of its paid-up capital. It was uplifted from PN17 in late May 2011.
Chew said all the 76 units of shophouses under phase one, priced between RM1mil and RM1.79mil each, had been sold.
“For phase five residential scheme, 90% of the units have been sold,” he added.
Phase five comprising 204 terraced houses and 38 semi-detached houses is due for completion in November-2012.
Chew said Ibraco would launch a new residential project in Stutong here next month. The project will have 67 units of terraced houses and four units of semi-detached houses with a GDV of 15mil.
On Ibraco's plan to venture into mixed property development projects in Bintulu or Miri, he said the company was still working on the proposal.
The company has earlier identified the land and might carry out the proposed development in joint-venture with the landowner concerned.
To diversify, Chew said Ibraco was studying proposals to go into construction business, both infrastructure and civil building works, for the private and public sectors.
For the quarter ended June 30, 2011, Ibraco posted a pre-tax profit of RM3.75mil on a turnover of RM28.5mil as compared with loss of RM798,000 on revenue of RM676,000 in the same period last year.
In an explanatory note, Ibraco said the group's revenue increased to RM28.5mil against RM19.4mil in the quarter ended March 31, 2011 when revenue came from both sales of inventories and Tabuan Tranquility project.
Chew said for the financial year ending Dec 31, 2011,the group was confident of achieving its projected nett profit of RM12mil.
By The Star
Investing beyond the Malaysian shores
The lucrative investments in overseas properties have seen many local developers venture beyond our Malaysian shores. Singapore and emerging countries such as Vietnam, being closer to home, are popular destinations. Further away are India, China, Oman, Pakistan and now gaining popularity are United Kingdom, Melbourne and Sydney in Australia and even as far as Canada.
Well-known local developers such as Sime Darby, SP Setia, YTL, IOI Properties, Genting, Sunway, and Selangor Dredging Bhd (SDB) among others have set foot on these foreign lands and hitherto their investments have proven to be promising.
YTL Corp is noted as the most robust player in its international branding mission with several committed projects in the pipeline including a mega development in Koh Samui, Thailand, a holiday destination in Hokkaido, Japan and several hotels in Shanghai, China and Saint-Tropez, France. Despite the recent global financial crisis, property prices in most cities have recovered, thus, stimulating demand.
To date, the total investment of Malaysian developers in Singapore is estimated to exceed RM28bil. The recent alliance between Khazanah Nasional and Temasek Holdings resulting from the land swap deal and the relocation of the Tanjong Pagar Railway Station is anticipated to generate significant returns to UEM Land. The integrated developments in four land parcels in Marina South and two land parcels in Ophir Rochor are expected to generate a gross development value of S$11bil (RM27bil).
Sailing on a different business model, Sime Darby owns several office buildings in central Singapore. With gross rental rate for prime office space in Singapore ranging between RM25 psf to RM30 psf, net yield is estimated at between 4% and 5%.
Meanwhile, the positive real estate outlook in Melbourne, touted as the fastest growing city in Australia is buoyed by inter alia investor-friendly property ownership regulations. Annually, the population in Melbourne rises by 90,000 with the current population standing at 4 million. It is learnt that to cope with the apparent shortfalls in residential supply, Melbourne requires 35,000 new dwelling units per year. However, only 26,500 units are being completed annually, suggesting a gap of 8,500 units yearly.
High-end condominiums are the most popular property type by Malaysian developers investing abroad. They give the fastest turnaround and are easy-to-sell projects and will create profitable returns. This is evident by several new high-end condominiums being planned, including Fulton Lane and Dynasty Living in Melbourne by SP Setia and Magna Prima and Sentosa Seaview, and OKIO Residence in Singapore by IOI Properties and SDB. The most recent launches are Burwood Rise and Burwood View, 20 minutes from Melbourne's central business district by Malaysian Resources Corp Bhd.
Prices are definitely higher in these cities compared to Malaysia. A high-end condominium unit in Singapore has an average selling price of S$2,700 psf (RM6,600 psf). Meanwhile, a high-end condominium in Melbourne is priced between A$650 psf (RM2,000 psf) to A$850 psf (RM2,650 psf). These prices are drastically higher than the Malaysian average of RM1,200 psf. In the meantime, demand for rental has softened particularly in Singapore due to stricter criteria for foreigners working in Singapore and shrinking housing allowances for expatriates. Increased supply from newly completed residential homes has also added downward pressure on rental. OKIO Residence by SDB near Balestier Road in central Singapore is projecting a typical 5% yield with rental rates from S$3,000 to S$3,600 per month.
Buying activities remain bullish with take-up rates of at least 60% upon launching. Sunrise, a subsidiary under UEM Land, marked the fastest sales performance, whereby 90% of the condominium units in Quintet, outside downtown Vancouver was snapped up in less than one week. Dynasty Living and Fulton Lane, both launched early this year, have to date registered 62% and 70% sales respectively. Projects with a larger proportion of smaller units saw higher take-up rates as these units seem to be more affordable. These projects draw a balanced mix between owner-occupier and investors. Singapore, Malaysia, Indonesia, China and Hong Kong are noted to be the most active destination for investors diversifying their assets overseas.
Moving forward, more local developers are expected to go abroad to enable the companies to achieve their aspired visions. Expanding businesses abroad will generate higher annual growth and, subsequently, establish stronger presence of Malaysian developers in the international arena. Nonetheless, careful consideration, researching and evaluating risks are among the prerequisites before extending the regional reach.
The recent economic problems in the United States would have implications on the financial markets and economies around the globe. The weak US GDP numbers, the Japanese supply-chain disruptions from the March 11 earthquake, financial market jitters over Europe's debt crisis, slower pace of Malaysia's economy with 4.0% GDP reported in the second quarter of 2011 from 4.9% in the first quarter and the weakening of export numbers from the manufacturing sector due to weaker external environments are some of the pertinent yardstick in determining the global endeavour.
Senator Datuk Abdul Rahim Rahman is the executive chairman of Rahim & Co group of companies.
By The Star (by Datuk Abdul Rahim Rahman)
Well-known local developers such as Sime Darby, SP Setia, YTL, IOI Properties, Genting, Sunway, and Selangor Dredging Bhd (SDB) among others have set foot on these foreign lands and hitherto their investments have proven to be promising.
YTL Corp is noted as the most robust player in its international branding mission with several committed projects in the pipeline including a mega development in Koh Samui, Thailand, a holiday destination in Hokkaido, Japan and several hotels in Shanghai, China and Saint-Tropez, France. Despite the recent global financial crisis, property prices in most cities have recovered, thus, stimulating demand.
To date, the total investment of Malaysian developers in Singapore is estimated to exceed RM28bil. The recent alliance between Khazanah Nasional and Temasek Holdings resulting from the land swap deal and the relocation of the Tanjong Pagar Railway Station is anticipated to generate significant returns to UEM Land. The integrated developments in four land parcels in Marina South and two land parcels in Ophir Rochor are expected to generate a gross development value of S$11bil (RM27bil).
Sailing on a different business model, Sime Darby owns several office buildings in central Singapore. With gross rental rate for prime office space in Singapore ranging between RM25 psf to RM30 psf, net yield is estimated at between 4% and 5%.
Meanwhile, the positive real estate outlook in Melbourne, touted as the fastest growing city in Australia is buoyed by inter alia investor-friendly property ownership regulations. Annually, the population in Melbourne rises by 90,000 with the current population standing at 4 million. It is learnt that to cope with the apparent shortfalls in residential supply, Melbourne requires 35,000 new dwelling units per year. However, only 26,500 units are being completed annually, suggesting a gap of 8,500 units yearly.
High-end condominiums are the most popular property type by Malaysian developers investing abroad. They give the fastest turnaround and are easy-to-sell projects and will create profitable returns. This is evident by several new high-end condominiums being planned, including Fulton Lane and Dynasty Living in Melbourne by SP Setia and Magna Prima and Sentosa Seaview, and OKIO Residence in Singapore by IOI Properties and SDB. The most recent launches are Burwood Rise and Burwood View, 20 minutes from Melbourne's central business district by Malaysian Resources Corp Bhd.
Prices are definitely higher in these cities compared to Malaysia. A high-end condominium unit in Singapore has an average selling price of S$2,700 psf (RM6,600 psf). Meanwhile, a high-end condominium in Melbourne is priced between A$650 psf (RM2,000 psf) to A$850 psf (RM2,650 psf). These prices are drastically higher than the Malaysian average of RM1,200 psf. In the meantime, demand for rental has softened particularly in Singapore due to stricter criteria for foreigners working in Singapore and shrinking housing allowances for expatriates. Increased supply from newly completed residential homes has also added downward pressure on rental. OKIO Residence by SDB near Balestier Road in central Singapore is projecting a typical 5% yield with rental rates from S$3,000 to S$3,600 per month.
Buying activities remain bullish with take-up rates of at least 60% upon launching. Sunrise, a subsidiary under UEM Land, marked the fastest sales performance, whereby 90% of the condominium units in Quintet, outside downtown Vancouver was snapped up in less than one week. Dynasty Living and Fulton Lane, both launched early this year, have to date registered 62% and 70% sales respectively. Projects with a larger proportion of smaller units saw higher take-up rates as these units seem to be more affordable. These projects draw a balanced mix between owner-occupier and investors. Singapore, Malaysia, Indonesia, China and Hong Kong are noted to be the most active destination for investors diversifying their assets overseas.
Moving forward, more local developers are expected to go abroad to enable the companies to achieve their aspired visions. Expanding businesses abroad will generate higher annual growth and, subsequently, establish stronger presence of Malaysian developers in the international arena. Nonetheless, careful consideration, researching and evaluating risks are among the prerequisites before extending the regional reach.
The recent economic problems in the United States would have implications on the financial markets and economies around the globe. The weak US GDP numbers, the Japanese supply-chain disruptions from the March 11 earthquake, financial market jitters over Europe's debt crisis, slower pace of Malaysia's economy with 4.0% GDP reported in the second quarter of 2011 from 4.9% in the first quarter and the weakening of export numbers from the manufacturing sector due to weaker external environments are some of the pertinent yardstick in determining the global endeavour.
Senator Datuk Abdul Rahim Rahman is the executive chairman of Rahim & Co group of companies.
By The Star (by Datuk Abdul Rahim Rahman)
Sime Darby agrees to acquire 30pc of E&O
Kuala Lumpur: Conglomerate Sime Darby Bhd has agreed to buy 30 per cent of Eastern & Oriental Bhd (E&O), a developer with large projects on Penang island, sources said.
Sime will buy the shares from two parties, believed to be GK Goh Holdings Ltd and Puan Sri Nik Anida Nik Manshor, the wife of Tan Sri Wan Azmi Wan Hamzah.
Based on the latest Bursa Malaysia filings, Nik Anida has an indirect stake of 11.86 per cent while GK Goh Holdings Ltd holds another 11.23 per cent.
Sources said E&O will also issue new shares to Sime. In total, Sime is expected to own 30 per cent of the property developer.
"It is unsure how much the deal is worth. But rumour was that Sime wanted to buy at more than RM2, but the sellers then were not willing to sell. With the current global economic landscape, they may have changed their minds," said a source.
The deal will allow Sime to recognise part of E&O's earnings, but more importantly, it gives Sime the opportunity to take part in the much talked-about Seri Tanjung Pinang 2 project.
That project involves reclaiming 740 acres of land in Tanjung Tokong to develop two islands for mixed development projects. The project has an estimated gross development value (GDV) of RM12 billion.
Yesterday, trading in E&O and GK Goh Holdings Ltd shares were suspended. However, Sime shares were not halted.
Shares of E&O rose 1.4 per cent on Thursday to RM1.45. Over the past 30 days, its shares closed at a high of RM1.70 and a low of RM1.38. On average, it was traded at RM1.38, with a volume of 10.6 million shares daily.
Sime stocks ended unchanged at RM8.80.
Since May, major shareholders of E&O have been accumulating the stock. During the period, Nik Anida has expanded her indirect stake to 11.86 per cent from 9.09 per cent.
AmBank group chairman Tan Sri Azman Hashim had also been on a shopping spree during the period. He raised his stake to 6.25 per cent from 5.1 per cent.
By Business Times
Sime Darby buying 30% stake in Eastern & Oriental?
PETALING JAYA: Trading in the securities of Eastern & Oriental Bhd (E&O) has been suspended since Friday, pending a material announcement.
Shares of the property development company was last traded at RM1.45 on Thursday, which was two sen higher from the previous day. Rumours were rife that conglomerate Sime Darby Bhd would be acquiring a 30% stake in the company from Singapore-listed G K Goh Ltd.
At press time, no announcement has been issued.
Trading in G K Goh had also been suspended pending an announcement.
E&O has several projects, the largest of which is the 980-acre seafront development Seri Tanjung Pinang in Penang. It also has pockets of land in Jalan Kia Peng and Jalan Yap Kwan Seng in Kuala Lumpur and 365 acres at Gertak Sanggul in Penang plus bungalow lots in Damansara Heights.
By The Star
Shares of the property development company was last traded at RM1.45 on Thursday, which was two sen higher from the previous day. Rumours were rife that conglomerate Sime Darby Bhd would be acquiring a 30% stake in the company from Singapore-listed G K Goh Ltd.
At press time, no announcement has been issued.
Trading in G K Goh had also been suspended pending an announcement.
E&O has several projects, the largest of which is the 980-acre seafront development Seri Tanjung Pinang in Penang. It also has pockets of land in Jalan Kia Peng and Jalan Yap Kwan Seng in Kuala Lumpur and 365 acres at Gertak Sanggul in Penang plus bungalow lots in Damansara Heights.
By The Star
Friday, August 26, 2011
Gurney Paragon Mall’s first phase to be ready soon
GEORGE TOWN: The first phase of the RM450mil Gurney Paragon Mall will be ready by the end of this year.
Group executive chairman Datuk Khor Teng Tong said the 25 retail tenants in that phase would be Italiennes restaurant, Coffee Bean, Pacific Coffee, and TGIF.
The first phase has a net lettable area of 111,000sq ft. The second phase, comprising 599,000 sq ft, will have teants such as Hokkaido Ichiba Japanese restaurant, Urban Fresh supermarket, and TGV Cinemas Sdn Bhd.
“We are now negotiating with Valiram Group to bring in some of their fashion brand names for the second phase,” he said.
Khor said the group's business model was to hold and manage this mall.
“We have experts from Singapore and Kuala Lumpur to advise on the mall's operations.
“The rental income stream from the mall in the future will enable the group to have a strong base of recurring income.
“This will transform the group from a property developer into a real estate landlord,” he added.
On the Gurney Paragon RM480mil condominium project, located within the same premise as the commercial segment, Khor said about 70% of the 220 condominium units had been sold.
“We have also obtained the certificate of fitness for the project,” he said.
Khor added that about RM10mil was in the process of being paid in the form of rebates to some 100 purchasers of the condominium scheme for late delivery.
The condominium project was scheduled for delivery in mid-2010.
It was delayed because of the caving in of an access road in July 2009.
By The Star
Group executive chairman Datuk Khor Teng Tong said the 25 retail tenants in that phase would be Italiennes restaurant, Coffee Bean, Pacific Coffee, and TGIF.
The first phase has a net lettable area of 111,000sq ft. The second phase, comprising 599,000 sq ft, will have teants such as Hokkaido Ichiba Japanese restaurant, Urban Fresh supermarket, and TGV Cinemas Sdn Bhd.
“We are now negotiating with Valiram Group to bring in some of their fashion brand names for the second phase,” he said.
Khor said the group's business model was to hold and manage this mall.
“We have experts from Singapore and Kuala Lumpur to advise on the mall's operations.
“The rental income stream from the mall in the future will enable the group to have a strong base of recurring income.
“This will transform the group from a property developer into a real estate landlord,” he added.
On the Gurney Paragon RM480mil condominium project, located within the same premise as the commercial segment, Khor said about 70% of the 220 condominium units had been sold.
“We have also obtained the certificate of fitness for the project,” he said.
Khor added that about RM10mil was in the process of being paid in the form of rebates to some 100 purchasers of the condominium scheme for late delivery.
The condominium project was scheduled for delivery in mid-2010.
It was delayed because of the caving in of an access road in July 2009.
By The Star
UEM Land Q2 net profit soars
KUALA LUMPUR: Property developer UEM Land Holdings Bhd's second quarter net profit more than doubled due to its soaring revenue.
Its net profit for the three months to June 2011 came in at RM88.9 million compared with RM40.35 million in the same quarter a year ago.
Revenue rose to RM509.4 million from RM88.0 million last year.
UEM Land said the momentum in the second quarter of 2011 will provide a strong platform for the current financial year.
For the first six months, UEM Land's net profit stood at RM106.54 million, up from RM43.49 million a year ago.
Group revenue rose to RM697.09 million from RM127.7 million previously.
UEM Land said the total unbilled sales of RM1.53 billion as at June 30 this year will support its revenue and profit for the current and subsequent financial years.
The significantly higher revenue in the quarter under review came mainly from higher direct development projects and developed land sales, UEM Land said in a filing to Bursa Malaysia yesterday.
Higher developed land sales of RM122.1 million compared with immediate preceding quarter of RM7.3 million was mainly attributed to strong sales performance for the Southern Industrial & Logistics Clusters (SiLC).
The high demand for industrial land at SiLC was due to the relocation of Singapore factories to Nusajaya, the company noted.
By Business Times
Its net profit for the three months to June 2011 came in at RM88.9 million compared with RM40.35 million in the same quarter a year ago.
Revenue rose to RM509.4 million from RM88.0 million last year.
UEM Land said the momentum in the second quarter of 2011 will provide a strong platform for the current financial year.
For the first six months, UEM Land's net profit stood at RM106.54 million, up from RM43.49 million a year ago.
Group revenue rose to RM697.09 million from RM127.7 million previously.
UEM Land said the total unbilled sales of RM1.53 billion as at June 30 this year will support its revenue and profit for the current and subsequent financial years.
The significantly higher revenue in the quarter under review came mainly from higher direct development projects and developed land sales, UEM Land said in a filing to Bursa Malaysia yesterday.
Higher developed land sales of RM122.1 million compared with immediate preceding quarter of RM7.3 million was mainly attributed to strong sales performance for the Southern Industrial & Logistics Clusters (SiLC).
The high demand for industrial land at SiLC was due to the relocation of Singapore factories to Nusajaya, the company noted.
By Business Times
Trinity to undertake affordable niche projects in Klang Valley
Going abroad:
PETALING JAYA: Up-and-coming developer, Trinity Group Sdn Bhd, is on the lookout for more strategic land in the Klang Valley to develop affordable niche boutique projects.
Managing director Datuk Neoh Soo Keat said the developer was also looking for opportunities in the other active growth markets of Penang and Johor.
“Hopefully in the next two to three years, we will be able to launch a project in Singapore also. To do that, we will need to tie up with a good Singapore partner,” Neoh told StarBiz.
Since it undertook its first development, The Heron Residency in 2004, the company has launched 2,010 property units worth some RM920mil, of which RM320mil have been completed.
It has an undeveloped land-bank of 8ha and a further 7.3ha in the Klang Valley that are under construction.
Neoh said the company hoped to achieve sales of RM520mil this year and RM640mil in 2012. Last year, it recorded RM50mil worth of sales, and its record sales so far were RM250mil in 2009.
While admitting the worsening external economies may affect market sentiment, he said the impact would be more severe on the high-end property market, while the medium-priced sector should be better cushioned against the softening outlook.
Trinity is targeting RM1.33bil worth of new project launches over the next two years. They will comprise residential and commercial projects in Melawati in Ampang, Bandar Putra Permai in Seri Kembangan, USJ 19 in Subang Jaya and Bukit Antarabangsa in Hulu Kelang.
The company plans to build condominiums on its 1.4ha freehold tract in Melawati with an estimated gross development value (GDV) of RM180mil.
The projected GDV of the Bandar Putra Permai project on 1.5ha is RM300mil, the 1.2ha USJ 19 project is worth RM200mil and the Bukit Antarabangsa project on 3.5ha is worth RM700mil.
The response to its latest project, the Z Residence condominium in Bukit Jalil, has been good with some RM350mil of the RM500mil development sold since its soft launch in April. The project comprises 1,136 condominium units on four towers of 26 and 27 storeys on a 2.7ha freehold site.
The first two phases, Towers A and B, featuring 590 units priced at an average RM340 per sq ft (psf), were sold out within a month.
The subsequent phase, Tower C featuring 281 units with built-up ranging from 1,032 to 1,407 sq ft, fetched an average price of RM380 psf. So far, it is about 65% sold.
The final block with 265 units will be launched next month.
Neoh said that to address the concerns of nearby Bukit OUG Condominium residents over the high-density nature of the development, which may cause traffic congestion in the area, Trinity would build a 800m link road costing RM3mil from the project site to Bukit Jalil highway to alleviate traffic congestion in the area.
It is also taking measures to reduce pollution during construction.
By The Star
Selangor Dredging aims for gross development value of RM1bil
KUALA LUMPUR: Selangor Dredging Bhd (SDB) is set to launch several new projects locally and in Singapore to achieve a gross development value (GDV) of RM1bil by the end of next year.
Within the next six months, the developer expects to hit the RM500mil GDV mark through the launches of Hijauan on Cavenagh in Singapore and By The Sea in Batu Feringghi, Penang.
There will also be two more upcoming projects in Cheras and Dengkil to be launched within the first half of next year.
Hijauan was the project SDB had postponed when Standard & Poor's downgraded the United States credit rating early this month. The development located near Orchard Road is slated to be launched next month, with a GDV of RM238mil.
Teh: ‘Despite volatility in the world markets, we have decided to go ahead with the launch.’
“The project was only postponed for a few weeks. Despite volatility in the world markets, we have decided to go ahead with the launch because the market in Singapore was still strong,” managing director Teh Lip Kim told reporters after the group's AGM yesterday.
Teh said SDB was adjusting its income stream to have 50% from Singapore and the remaining half from Malaysia in the next two or three years. Currently, its Singapore developments contribute 30% to SDB's earnings.
“Singapore has the potential to be the next Hong Kong because of it is strong financial standing and the trust people have in their government,” she said.
Chairman Eddy Chieng said SDB branded itself as a niche lifestyle property developer focusing on high turnaround time for all its projects.
SDB does not have large landbanks in Malaysia and Singapore but it acquired land for its projects.
“By not having large landbanks, we do not have huge holding costs and this allows us to have a quick turnaround time for our projects,” Chieng said.
“We have bite-size pieces of land for our niche developments because we are not involved in township development. In Singapore, we are buying on blocks only,” Teh added.
“We are looking to acquire land in Singapore but because the land cost is very high, we have to be very careful. In Malaysia, land would usually cost 30% of the total cost of a development but in Singapore, it could be up 70%,” she said.
On the outlook on local property market, Teh said Malaysia remained good in the next couple of years with generally lower property prices compared to neighbouring countries.
SDB will also be looking into the property market in developed countries including Britain. Currently, it has invested in an office building in London that housed HSBC Bank.
Since moving into property development in 2004, SDB has launched seven projects in Malaysia and three in Singapore with GDV totalling RM2.38bil.
For its first quarter ended June, SDB recorded a net profit increase of 77.7% to RM10.11mil from RM 5.69mil a year ago. Its turnover for the quarter also rose 58.3% year-on-year to RM98.9mil from RM62.48 last year.
The improved performance was due to the good response to 20tree West and Five Stones in Kuala Lumpur and Petaling Jaya as well as Gilstead Two in Singapore.
In the financial year ended March, SDB's net profit was RM30.17mil, 67.9% increase from RM17.96mil achieved last year's. It achieved a turnover of RM346mil for FY2011, a 47.6% increase from RM234.43 in the previous period.
It recommended first and final payout dividendpayout at 5% per share, amounting to RM8mil.
By The Star
Within the next six months, the developer expects to hit the RM500mil GDV mark through the launches of Hijauan on Cavenagh in Singapore and By The Sea in Batu Feringghi, Penang.
There will also be two more upcoming projects in Cheras and Dengkil to be launched within the first half of next year.
Hijauan was the project SDB had postponed when Standard & Poor's downgraded the United States credit rating early this month. The development located near Orchard Road is slated to be launched next month, with a GDV of RM238mil.
Teh: ‘Despite volatility in the world markets, we have decided to go ahead with the launch.’
“The project was only postponed for a few weeks. Despite volatility in the world markets, we have decided to go ahead with the launch because the market in Singapore was still strong,” managing director Teh Lip Kim told reporters after the group's AGM yesterday.
Teh said SDB was adjusting its income stream to have 50% from Singapore and the remaining half from Malaysia in the next two or three years. Currently, its Singapore developments contribute 30% to SDB's earnings.
“Singapore has the potential to be the next Hong Kong because of it is strong financial standing and the trust people have in their government,” she said.
Chairman Eddy Chieng said SDB branded itself as a niche lifestyle property developer focusing on high turnaround time for all its projects.
SDB does not have large landbanks in Malaysia and Singapore but it acquired land for its projects.
“By not having large landbanks, we do not have huge holding costs and this allows us to have a quick turnaround time for our projects,” Chieng said.
“We have bite-size pieces of land for our niche developments because we are not involved in township development. In Singapore, we are buying on blocks only,” Teh added.
“We are looking to acquire land in Singapore but because the land cost is very high, we have to be very careful. In Malaysia, land would usually cost 30% of the total cost of a development but in Singapore, it could be up 70%,” she said.
On the outlook on local property market, Teh said Malaysia remained good in the next couple of years with generally lower property prices compared to neighbouring countries.
SDB will also be looking into the property market in developed countries including Britain. Currently, it has invested in an office building in London that housed HSBC Bank.
Since moving into property development in 2004, SDB has launched seven projects in Malaysia and three in Singapore with GDV totalling RM2.38bil.
For its first quarter ended June, SDB recorded a net profit increase of 77.7% to RM10.11mil from RM 5.69mil a year ago. Its turnover for the quarter also rose 58.3% year-on-year to RM98.9mil from RM62.48 last year.
The improved performance was due to the good response to 20tree West and Five Stones in Kuala Lumpur and Petaling Jaya as well as Gilstead Two in Singapore.
In the financial year ended March, SDB's net profit was RM30.17mil, 67.9% increase from RM17.96mil achieved last year's. It achieved a turnover of RM346mil for FY2011, a 47.6% increase from RM234.43 in the previous period.
It recommended first and final payout dividendpayout at 5% per share, amounting to RM8mil.
By The Star
Amanresorts awaiting govt approval for Penang Hill project
GEORGE TOWN: World-class hotelier Amanresorts International Pte Ltd's plans to manage and market a proposed resort on Penang Hill are still on track and awaiting government approval.
The company told Business Times yesterday that despite news reports that the luxury Aman Resorts chain may be sold, plans or operations of its resorts are not affected.
"Essentially, the Aman project, which is still to be named, is going ahead pending government approval.
"There is an Aman resort proposal to be submitted on September 5 this year to the (Penang) Chief Minister Incorporated for final approval," Amanresorts Press Office media communications manager Anjali Nihalchand said in an email.
In May, the Penang government had announced that Amanresorts will refurnish the famous Crag Hotel on Penang Hill, which was one of the earliest hilltop homes and later turned into a hotel in 1929. The hotel has been in a neglected and direlect state since 1977 when the International school of Penang (better known as Uplands School) vacated the premises and moved to George Town.
The project was reported to have been awarded in April to Sri Nisuh Sdn Bhd and the company was said to be investing US$12 million (RM35.76 million) to finance the project which was to be completed within 30 to 36 months.
The Sunday Times in London, which did not mention a source for its story, had reported that the luxury Aman Resorts chain may be sold for more than US$400 million (RM1.19 billion).
The report stated that the current owner, Indian property company DLF Ltd, has reportedly been seeking a buyer for Aman and the newspaper reported that it may have asked Goldman Sachs Group and Citigroup to find a strategic partner.
When asked to comment on whether this piece of news would affect Aman's plan for the Penang Hill resort, Anjali said: "No, the shareholding of the parent company of Amanresorts does not affect the plans or operations of the resorts."
In 2007, Khazanah Nasional Bhd announced that it had entered into a heads of agreement with Kota Selat Tebrau Sdn Bhd, Symphony International Holdings Limited and Aman Resorts Limited to develop an Aman Resort in the Iskandar Development Region in Johor.
The proposed resort was to have been the first Aman Resorts property in Malaysia to be built, designed and operated and the hotel was slated for completion in 2009. However, the project did not materialise.
By Business Times
The company told Business Times yesterday that despite news reports that the luxury Aman Resorts chain may be sold, plans or operations of its resorts are not affected.
"Essentially, the Aman project, which is still to be named, is going ahead pending government approval.
"There is an Aman resort proposal to be submitted on September 5 this year to the (Penang) Chief Minister Incorporated for final approval," Amanresorts Press Office media communications manager Anjali Nihalchand said in an email.
In May, the Penang government had announced that Amanresorts will refurnish the famous Crag Hotel on Penang Hill, which was one of the earliest hilltop homes and later turned into a hotel in 1929. The hotel has been in a neglected and direlect state since 1977 when the International school of Penang (better known as Uplands School) vacated the premises and moved to George Town.
The project was reported to have been awarded in April to Sri Nisuh Sdn Bhd and the company was said to be investing US$12 million (RM35.76 million) to finance the project which was to be completed within 30 to 36 months.
The Sunday Times in London, which did not mention a source for its story, had reported that the luxury Aman Resorts chain may be sold for more than US$400 million (RM1.19 billion).
The report stated that the current owner, Indian property company DLF Ltd, has reportedly been seeking a buyer for Aman and the newspaper reported that it may have asked Goldman Sachs Group and Citigroup to find a strategic partner.
When asked to comment on whether this piece of news would affect Aman's plan for the Penang Hill resort, Anjali said: "No, the shareholding of the parent company of Amanresorts does not affect the plans or operations of the resorts."
In 2007, Khazanah Nasional Bhd announced that it had entered into a heads of agreement with Kota Selat Tebrau Sdn Bhd, Symphony International Holdings Limited and Aman Resorts Limited to develop an Aman Resort in the Iskandar Development Region in Johor.
The proposed resort was to have been the first Aman Resorts property in Malaysia to be built, designed and operated and the hotel was slated for completion in 2009. However, the project did not materialise.
By Business Times
Thursday, August 25, 2011
Nadayu to launch projects worth RM1.5b
KUALA LUMPUR: Nadayu Properties Bhd aims to launch three projects worth a combined RM1.5 billion in the Klang Valley and Penang from next month to grow itself and build its branding.
"We are upbeat on the market. We plan to have a good following and grow the company's net profit and revenue year-on-year.
"We do intend to return dividends to shareholders. I believe overtime, we will have local and foreign funds investing in the company," Nadayu chairman Hamidon Abdullah said.
Hamidon and Nadayu executive director Alex Cheang control 70 per cent of the company.
Nadayu is launching a RM400 million project in Bandar Sunway called Nadayu28, featuring shoplots and high-rise residential units.
Hamidon expects 10 units of five-storey shoplots to be sold prior to the launch based on the number of bookings it has currently.
In Cyberjaya, Nadayu is launching a RM430 million mixed development by November and the first phase will comprise apartments and terraced houses.
By end-2011, it will launch Nadayu290 in Bukit Gambir, Penang, featuring high-rise residences and commercial space. This is 50:50 joint-venture project with Affin Islamic Bank Bhd.
"In the past, our projects were located in Cheras, Gombak and Selayang. We are now moving to where demand is," Hamidon said at the company's shareholders meeting here yesterday.
On the 1.4ha land near Sheraton Imperial Hotel at Jalan Sultan Ismail that Nadayu had planned to buy from UDA Holdings Bhd for RM215.5 million, Hamidon said he is disappointed with the outcome.
Nadayu had formalised the deal with UDA in July and planned to undertake a mixed development worth RM1.2 billion. UDA aborted the deal as it was unable to obtain the approval of its shareholders.
Hamidon said Nadayu is seeking more landbank and may also undertake projects in Penang, involving land reclamation if the opportunity arises.
"As a medium-sized developer, we can pick and choose what we want to do as we have the ability to buy tracts of land. We don't have to scramble for landbank. If we don't lose ourselves, we can progress credibly forward," he said.
By Business Times
"We are upbeat on the market. We plan to have a good following and grow the company's net profit and revenue year-on-year.
"We do intend to return dividends to shareholders. I believe overtime, we will have local and foreign funds investing in the company," Nadayu chairman Hamidon Abdullah said.
Hamidon and Nadayu executive director Alex Cheang control 70 per cent of the company.
Nadayu is launching a RM400 million project in Bandar Sunway called Nadayu28, featuring shoplots and high-rise residential units.
Hamidon expects 10 units of five-storey shoplots to be sold prior to the launch based on the number of bookings it has currently.
In Cyberjaya, Nadayu is launching a RM430 million mixed development by November and the first phase will comprise apartments and terraced houses.
By end-2011, it will launch Nadayu290 in Bukit Gambir, Penang, featuring high-rise residences and commercial space. This is 50:50 joint-venture project with Affin Islamic Bank Bhd.
"In the past, our projects were located in Cheras, Gombak and Selayang. We are now moving to where demand is," Hamidon said at the company's shareholders meeting here yesterday.
On the 1.4ha land near Sheraton Imperial Hotel at Jalan Sultan Ismail that Nadayu had planned to buy from UDA Holdings Bhd for RM215.5 million, Hamidon said he is disappointed with the outcome.
Nadayu had formalised the deal with UDA in July and planned to undertake a mixed development worth RM1.2 billion. UDA aborted the deal as it was unable to obtain the approval of its shareholders.
Hamidon said Nadayu is seeking more landbank and may also undertake projects in Penang, involving land reclamation if the opportunity arises.
"As a medium-sized developer, we can pick and choose what we want to do as we have the ability to buy tracts of land. We don't have to scramble for landbank. If we don't lose ourselves, we can progress credibly forward," he said.
By Business Times
Wednesday, August 24, 2011
IJM Land confident of good year despite global challenges
SUBANG JAYA: IJM Land Bhd, the property arm of IJM Corp Bhd, is confident of a good 2011 despite a challenging year brought about by the global economic slowdown and European debt crisis.
IJM Land chief executive officer and managing director Datuk Soam Heng Choon said despite a slowdown in some areas such as the Kuala Lumpur City Centre and Mont Kiara, the property market is still resilient in other areas like Penang and Sandakan.
"Property projects, which cost RM500,000 a unit, are still selling strong and the government's mass rapit transit project and the various economic transformation programmes will have strong spillover and multiplier effects in terms of property value and spending," Soam said after the company's annual general meeting.
Soam said the company, which is 67.07 per cent owned by IJM Corp Bhd, will launch projects with a gross development value (GDV) of RM2 billion and RM1 billion within the current financial years ending March 2012 and March 2013 respectively.
IJM Land has a landbank of 1,943.3ha nationwide with a GDV of more than RM19 billion, enough to keep it busy for the next 12 years.
Soam said the company is still open to mergers and acquisitions despite the failed tie-up with Malaysian Resources Corp Bhd.
It will not expand its overseas projects in China and Vietnam for the time being.
The company expects to register slower growth this year as the property market had stretched last year, which saw 375,000 units of various property units launched with a combined GDV of RM109 billion.
By Business Times
IJM Land chief executive officer and managing director Datuk Soam Heng Choon said despite a slowdown in some areas such as the Kuala Lumpur City Centre and Mont Kiara, the property market is still resilient in other areas like Penang and Sandakan.
"Property projects, which cost RM500,000 a unit, are still selling strong and the government's mass rapit transit project and the various economic transformation programmes will have strong spillover and multiplier effects in terms of property value and spending," Soam said after the company's annual general meeting.
Soam said the company, which is 67.07 per cent owned by IJM Corp Bhd, will launch projects with a gross development value (GDV) of RM2 billion and RM1 billion within the current financial years ending March 2012 and March 2013 respectively.
IJM Land has a landbank of 1,943.3ha nationwide with a GDV of more than RM19 billion, enough to keep it busy for the next 12 years.
Soam said the company is still open to mergers and acquisitions despite the failed tie-up with Malaysian Resources Corp Bhd.
It will not expand its overseas projects in China and Vietnam for the time being.
The company expects to register slower growth this year as the property market had stretched last year, which saw 375,000 units of various property units launched with a combined GDV of RM109 billion.
By Business Times
Sunway allocates RM400m for overseas expansion
KUALA LUMPUR: Sunway Bhd, a property and construction group, has allocated some RM400 million for overseas expansion mainly in China, Singapore and India.
Chief financial officer, Chong Chang Choong said RM300 million has been set aside for the Tianjin Eco-City project in China while the rest will be for projects in Singapore and India.
The Tianjin Eco-City project has an estimated gross development value (GDV) of RM5 billion and is due to be launched in the middle of 2012. It will also be completed between five and seven years.
Shares of the group, a merger between Sunway City Bhd and Sunway Holdings Bhd, was relisted yesterday with an opening price of RM2.60 versus its reference price of RM2.80.
It closed 11 per cent or 31 sen down to RM2.49.
Chong said the group expects its overseas business to contribute about 30 per cent of total turnover in the next five years.
"Our core strength will still be in Malaysia. Any investment overseas especially in China will be more of an opportunistic point of view," he added.
Meanwhile founder and chairman, Tan Sri Dr Jeffrey Cheah said the group hopes to win jobs under the mass rapid transit (MRT) project. Sunway recently won a contract under the light rail transit (LRT) extension project.
"Just recently, we won the bidding for the LRT extension...As for MRT, we have very good experiences, very good track record. We worked very hard for it," he said.
The group will be one of the largest property-construction players in the region, with total assets of over RM7 billion and a land bank of close to 891 ha with a potential GDV of approximately RM23 billion.
By Business Times
Chief financial officer, Chong Chang Choong said RM300 million has been set aside for the Tianjin Eco-City project in China while the rest will be for projects in Singapore and India.
The Tianjin Eco-City project has an estimated gross development value (GDV) of RM5 billion and is due to be launched in the middle of 2012. It will also be completed between five and seven years.
Shares of the group, a merger between Sunway City Bhd and Sunway Holdings Bhd, was relisted yesterday with an opening price of RM2.60 versus its reference price of RM2.80.
It closed 11 per cent or 31 sen down to RM2.49.
Chong said the group expects its overseas business to contribute about 30 per cent of total turnover in the next five years.
"Our core strength will still be in Malaysia. Any investment overseas especially in China will be more of an opportunistic point of view," he added.
Meanwhile founder and chairman, Tan Sri Dr Jeffrey Cheah said the group hopes to win jobs under the mass rapid transit (MRT) project. Sunway recently won a contract under the light rail transit (LRT) extension project.
"Just recently, we won the bidding for the LRT extension...As for MRT, we have very good experiences, very good track record. We worked very hard for it," he said.
The group will be one of the largest property-construction players in the region, with total assets of over RM7 billion and a land bank of close to 891 ha with a potential GDV of approximately RM23 billion.
By Business Times
Sunway makes weak debut
KUALA LUMPUR: The shares of newly-merged property and construction group Sunway Bhd were not immune to the weak market sentiment, closing at RM2.49 on their Bursa Malaysia debut yesterday, down 31 sen from the reference price of RM2.80.
An analyst said investors were still reeling from the recent shocks to the global economy.
Cheah striking the gong at the listing ceremony. With him are the group’s executives and directors.
“The stock is still undervalued compared to its peers as its price to earnings ratio and price to book value are still very attractive. There is more upside when the sentiments improve,” he said.
Trading in Sunway shares kicked off at RM2.60, with 123,900 shares changing hands at the opening bell. It hit an intra-day low of RM2.40.
“We are quite happy with the price at the moment given the circumstances. Markets go up and down, but the merger will make us stronger with more synergy and branding (value),” said executive chairman Tan Sri Jeffrey Cheah at the listing ceremony.
The debut marks the completion of the merger between Sunway Holdings Bhd and Sunway City Bhd, which was initiated in November last year. “With our size, we can now bid for more projects with higher values and access more capital markets, backed by enhanced liquidity and stronger credit profile,” he said.
The group expects to derive 30% of its turnover from overseas investments over the next five years. “In line with that objective, we have allocated RM300mil to RM400mil for our overseas expansion,” said chief financial officer Chong Chang Choong.
Currently, its overseas investment contributes 10%-15% of the group's turnover.
Sunway will be looking at opportunities to expand in growth markets such as China, India and Singapore. Chong said about RM300mil would be utilised to develop the 95-acre Tianjin Eco-City in China which is worth RM5bil in gross development value.
“The Tianjin project is very capital intensive as it involves land and development cost, and that is why we need to set aside such a huge quantum of funds for the project. The balance will go into funding our other projects in Singapore and India,” he added.
The enlarged Sunway Bhd, with total assets of RM7bil and a market capitalisation of RM3.6bil, is also set to leverage on its stronger position and continue its participation in local construction projects.
“We have been pre-qualified to tender for the My Rapid Transit project, and we are confident of clinching some of the contracts based on our good track record and experience,” Cheah said.
Recently, the group was awarded the light rail transit Kelana Jaya extension job valued at RM569mil by Syarikat Prasarana Negara Bhd.
By The Star
An analyst said investors were still reeling from the recent shocks to the global economy.
Cheah striking the gong at the listing ceremony. With him are the group’s executives and directors.
“The stock is still undervalued compared to its peers as its price to earnings ratio and price to book value are still very attractive. There is more upside when the sentiments improve,” he said.
Trading in Sunway shares kicked off at RM2.60, with 123,900 shares changing hands at the opening bell. It hit an intra-day low of RM2.40.
“We are quite happy with the price at the moment given the circumstances. Markets go up and down, but the merger will make us stronger with more synergy and branding (value),” said executive chairman Tan Sri Jeffrey Cheah at the listing ceremony.
The debut marks the completion of the merger between Sunway Holdings Bhd and Sunway City Bhd, which was initiated in November last year. “With our size, we can now bid for more projects with higher values and access more capital markets, backed by enhanced liquidity and stronger credit profile,” he said.
The group expects to derive 30% of its turnover from overseas investments over the next five years. “In line with that objective, we have allocated RM300mil to RM400mil for our overseas expansion,” said chief financial officer Chong Chang Choong.
Currently, its overseas investment contributes 10%-15% of the group's turnover.
Sunway will be looking at opportunities to expand in growth markets such as China, India and Singapore. Chong said about RM300mil would be utilised to develop the 95-acre Tianjin Eco-City in China which is worth RM5bil in gross development value.
“The Tianjin project is very capital intensive as it involves land and development cost, and that is why we need to set aside such a huge quantum of funds for the project. The balance will go into funding our other projects in Singapore and India,” he added.
The enlarged Sunway Bhd, with total assets of RM7bil and a market capitalisation of RM3.6bil, is also set to leverage on its stronger position and continue its participation in local construction projects.
“We have been pre-qualified to tender for the My Rapid Transit project, and we are confident of clinching some of the contracts based on our good track record and experience,” Cheah said.
Recently, the group was awarded the light rail transit Kelana Jaya extension job valued at RM569mil by Syarikat Prasarana Negara Bhd.
By The Star
Tuesday, August 23, 2011
Sunway eyes 30pc turnover from overseas
Sunway Bhd, an integrated property and construction company, expects its overseas business operation to contribute about 30 per cent of the company's total turnover in the next five years.
Its chief financial officer, Chong Chang Choong said currently, the businesses abroad contributed between 10-15 per cent of group turnover.
To embark on the overseas business operations, Chong said Sunway is investing RM300 million-RM400 million over the next five years.
"From the total investment, some RM300 million will be channeled to our property project in Tianjin, China," he said after Sunway Bhd's listing ceremony today.
Sunway, a merged entity following a merger between Sunway Holdings Bhd and Sunway City Bhd, was listed on the Main Market of Bursa Malaysia Securities Bhd.
Also present at the listing ceremony was the founder cum executive chairman of Sunway, Tan Sri Jeffrey Cheah.
The property development project in Tianjin, named Tianjin Eco City, Chong said, comes with a gross development value of RM5 billion.
The project, which covers about 90-95 acres is expected to be launched in the middle of next year and completed in 5-7 years time, he added.
"Our core business in both the construction and property segments will still be in Malaysia.
"However, we are also looking at overseas expansion, of which China is a very important market for Sunway," Chong said.
He also said after China, Sunway views Singapore as a very vibrant and attractive market.
"We are also allocating some RM100 million for the business expansion plans in Singapore and other countries," he added.
On Sunway's presence in India, he said the amount of investment in the country is relatively small, compared to the others.
"We have done some road projects there. But for the time being, our focus is on China and Singapore," he said.
Sunway debuted on the Main Market of Bursa Malaysia today, with a 20 sen discount against its reference price of RM2.80.
At the opening bell, 123,900 shares were traded.
By Bernama
Its chief financial officer, Chong Chang Choong said currently, the businesses abroad contributed between 10-15 per cent of group turnover.
To embark on the overseas business operations, Chong said Sunway is investing RM300 million-RM400 million over the next five years.
"From the total investment, some RM300 million will be channeled to our property project in Tianjin, China," he said after Sunway Bhd's listing ceremony today.
Sunway, a merged entity following a merger between Sunway Holdings Bhd and Sunway City Bhd, was listed on the Main Market of Bursa Malaysia Securities Bhd.
Also present at the listing ceremony was the founder cum executive chairman of Sunway, Tan Sri Jeffrey Cheah.
The property development project in Tianjin, named Tianjin Eco City, Chong said, comes with a gross development value of RM5 billion.
The project, which covers about 90-95 acres is expected to be launched in the middle of next year and completed in 5-7 years time, he added.
"Our core business in both the construction and property segments will still be in Malaysia.
"However, we are also looking at overseas expansion, of which China is a very important market for Sunway," Chong said.
He also said after China, Sunway views Singapore as a very vibrant and attractive market.
"We are also allocating some RM100 million for the business expansion plans in Singapore and other countries," he added.
On Sunway's presence in India, he said the amount of investment in the country is relatively small, compared to the others.
"We have done some road projects there. But for the time being, our focus is on China and Singapore," he said.
Sunway debuted on the Main Market of Bursa Malaysia today, with a 20 sen discount against its reference price of RM2.80.
At the opening bell, 123,900 shares were traded.
By Bernama
Sunway falls on debut after property merger
Sunway Bhd fell on its debut on the Kuala Lumpur stock exchange after acquiring and merging two property and construction companies.
The stock slid to RM2.64 at 9:05 a.m. local time, lower than the reference price of RM2.80.
Sunway bought Sunway Holdings Bhd and Sunway City Bhd by offering cash and new shares at RM2.80 each.
The share slump on its debut is due mainly to the “global situation,” executive chairman Jeffrey Cheah told reporters in Kuala Lumpur today.
“We are quite happy with our share price given the circumstances,” he said.
“Markets go up and down. We are not worried too much.”
By Bloomberg
The stock slid to RM2.64 at 9:05 a.m. local time, lower than the reference price of RM2.80.
Sunway bought Sunway Holdings Bhd and Sunway City Bhd by offering cash and new shares at RM2.80 each.
The share slump on its debut is due mainly to the “global situation,” executive chairman Jeffrey Cheah told reporters in Kuala Lumpur today.
“We are quite happy with our share price given the circumstances,” he said.
“Markets go up and down. We are not worried too much.”
By Bloomberg
S’pore luxury home prices fall
SINGAPORE: Luxury home prices in Singapore fell during the second quarter as Asia's high-end residental market showed signs of softening amid tighter mortgage lending and rising interest rates, property services firm CB Richard Ellis said.Latest business news from AP-Wire
Singapore luxury home prices declined 1.7% in local currency terms in AprilJune from the preceding quarter, while average rents fell 1.9% as completed units came onto the market, it said in a statement yesterday.
By Reuters
Singapore luxury home prices declined 1.7% in local currency terms in AprilJune from the preceding quarter, while average rents fell 1.9% as completed units came onto the market, it said in a statement yesterday.
By Reuters
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