PETALING JAYA: Property player Mah Sing Group Bhd is seeing increasing interest by investors and some analysts reckon the company is emerging nicely as a steady proxy to the Malaysian property sector.
The company's shares appreciated by some 16% over the last two weeks. However, it closed one sen down at RM2.41 yesterday.
“Given a changed competitive landscape, Mah Sing's ascendancy under the stewardship of its major shareholder Tan Sri Leong Hoy Kum should now firmly solidify its valuation from long overdue market recognition of its entrepreneurial spirit in driving net asset value growth,” said AmResearch in its initiation report.
In a poll of 14 analysts by Bloomberg, 10 analysts have a “buy” rating, three analysts have a “hold” rating while only one has a “sell” call. The consensus target price is RM2.54, while the consensus net profit for its financial year (FY) ending Dec 31, 2012 is RM220mil, and RM286.36mil for FY13.
Yesterday AmResearch rated a fair value of RM3.60 for Mah Sing, based on a mid-cycle discount of 25% to its estimated net asset value of RM4.80 per share. This fair value implies a price earnings of 12 times (x) on FY13 net income of RM260.2mil.
Its two large township projects would be its soon-to-be-launched Southville City in Bangi, with a gross development value (GDV) of RM2.2bil as well as the M Residence in Rawang, Selangor.
Mah Sing has a net gearing of 33%. It has bought over RM1bil worth of land in the past four years with about RM11bil in GDV.
AmResearch said that this year, the group had secured three parcels of land which will yield a total GDV of RM3.63bil or accounting for 73% of its 2012 GDV replenishment target of RM5bil. It currently has total estimated GDV of RM16bil.
“Mah Sing is well known for its small, niche, fast turnaround developments as the group does not own a single parcel of land bigger than 400 acres until the recent acquisition of the Bangi land,” said AmResearch.
“The group's sales are very much secured with current unbilled sales of RM2.5bil. It has achieved RM1bil in new sales up to the middle of May, or accounting for 40% of its sales target of RM2.5bil,”
“In the first quarter alone, it sold RM676mil worth of properties or a 21% growth year on year. Key contributors include Kinrara Residence, M City and M Residence 1,” said AmResearch.
AmResearch forecast earnings to expand by 24% to RM209.5mil in FY12 before growing by another 24% to RM260mil in FY13 and reaching RM320mil in FY14 in line with management's earnings growth target of 20%-25% per annum.
Industry observers also point out that part of the reason why Mah Sing is getting more attention now is due to a slight lessening of interesting in market leader SP Setia Bhd.
For close to a decade, SP Setia has held the spot of sector leader. However, the takeover of SP Setia by Permodalan Nasional Bhd (PNB) last year at a price of RM3.90, has seen its sector leadership being increasingly discounted, and this is evident from its share price.
Last month, SP Setia chief Tan Sri Liew Kee Sin exercised his put option for the first time, reducing his stake to 5.88% from 8.23%. The 2.35% block was worth RM178.53mil based on the transacted price of RM3.95. With that exercise, PNB has a 73.06% stake. SP Setia closed the day at RM3.53 down 7 sen.
Liew and PNB have entered into an agreement where Liew will continue to steer the company for a three-year period, and with no board changes during that time.
Interestingly, many analysts have said that the departure of Liew would see them downgrading SP Setia.
By The Star
Wednesday, August 8, 2012
PHB shelves proposals for Bangsar land
KUALA LUMPUR: Pelaburan Hartanah Bhd (PHB) has shelved all proposals from several companies to develop a prime 8.09ha site on Jalan Bangsar in Kuala Lumpur, its chief said.
PHB, a unit of Yayasan Amanah Hartanah Bumiputera and Mayban Investment Management Sdn Bhd, owns the land where the Unilever headquarters and factory once sat.
It has received proposals from companies like Mah Sing Group Bhd, Malaysian Resources Corp Bhd (MRCB), SP Setia Bhd, UEM Land Holdings Bhd and Land & General Bhd.
Business Times reported recently that MRCB had emerged as the front-runner to secure the land development job, which is estimated to generate more than RM5 billion in gross development value.
However, PHB managing director and chief executive officer Datuk Kamalul Arifin Othman said it is not in discussion with any parties currently.
“We are just waiting for approval from the City Hall for the masterplan that we submitted to them early this year.
“Once the masterplan has been approved, we will decide on what to do next,” Kamalul told Business Times via a telephone interview recently.
PHB may award the contract to develop the land to one party or parcel it out to several property developers.
It may also take a stake in the project through a joint venture,
Kamalul said.
“This is a huge project that requires proper master planning.
We want it to be the next mega development for Kuala Lumpur,” he said.
Current developments in Kuala Lumpur include the MRCB’s KL Sentral integrated transport hub in Brickfields, SP Setia’s KL Eco City and Setia Federal Hill and the RM26 billion Tun Razak Exchange.
Set up by the government in 2006, PHB is to facilitate Bumiputera ownership in prime commercial real estate.
PHB also has a trust fund that invests in commercial
properties.
Meanwhile, Mah Sing – one of the interested developers – said it is waiting for a final decision from PHB on the status of its proposal and the land development plan.
“PHB has not come back to us. So we believe we still have a chance to bank the job.
“We think the contract would be awarded after the elections,” its managing director and group chief executive Tan Sri Leong Hoy Kum told Business Times.
By Business Times
More to Naim Holdings? Analysts say stock undervalued based on several factors
PETALING JAYA: Naim Holdings Bhd's stock is said to be undervalued after considering factors such as the group's real estate assets, earnings visibility and 34% stake in associate Dayang Enterprise Holdings Bhd, according to research analysts.
The group, headquartered in Kuching, Sarawak, was in the limelight recently after its wholly-owned subsidiary Naim Engineering Sdn Bhd won a RM208.2mil contract for one of the work packages for the My Rapid Transit (MRT) project in Kuala Lumpur.
Naim Holdings is involved in property development, and contracting of construction, civil engineering, oil and gas and infrastructure projects.
According to Bloomberg data, the major shareholders of Naim Holdings include Island Harvests Sdn Bhd (12.25%), Tapak Beringin Sdn Bhd (10.96%), Lembaga Tabung Haji (10%), managing director Datuk Hasmi Hasnan (6.67%), Skim Amanah Saham Bumiputra or ASB (5%), Employees Provident Fund (5%) and chairman Datuk Abdul Hamed Sepawi (4.86%).
Hasmi is also the chairman of Dayang Enterprise.
The group's market capitalisation is RM472.5mil. The stock closed 5 sen higher to RM1.89 yesterday.
TA Securities Holdings Bhd analyst Ooi Beng Hooi pointed out that Naim Holdings' 33.63% stake in Dayang Enterprise, which is a service provider to the oil and gas industry, is worth RM379.1mil or RM1.51 per Naim Holdings share (based on a price of RM2.05 per Dayang Enterprise share).
“Also, Naim Holdings has an undeveloped land bank of 2,620 acres in Sarawak with an estimated gross development value (GDV) of RM9.5bil,” said Ooi.
The group's flagship property developments are Bandar Baru Permyjaya in Miri, Desa Ilmu in Kota Samarahan, and the up-market Riveria satellite township in Kuching.
TA Securities is maintaining a buy call on Naim Holdings' stock, with a target price of RM2.26 per share.
Meanwhile, Kenanga Research has an outperform call Naim Holdings' stock, with a target price of RM2.94.
In a recent note, Kenanga Research said it was neutral on the MRT contract as it was within the research unit's financial year 2012 annual order book replenishment of RM500mil.
“We expect the contract margin to hover around 6% to 8% at the pre-tax level, which is in line with the group's track record.”
The research unit said to date, Naim Holdings' outstanding order book stood at RM1.3bil, including the MRT contract, which would provide earnings visibility for the next four years.
“The next re-rating catalyst for Naim Holdings will be additional new contracts secured this year. Thus far, the group has secured RM500mil worth of new contracts this year,” said Kenanga Research.
An industry source also reckoned there was plenty of share price upside potential for Naim Holdings within a two to three-year horizon, based on new property developments and possibly more government construction contracts in Sarawak.
The source pointed out that Naim Holdings would develop the site of the old Bintulu airport into an integrated upmarket commercial and residential project, with a GDV of RM2bil.
“Also, look at the proximity of the fast-developing new Samalaju Industrial Park, where international companies have invested, to Bintulu. A new RM1.8bil Samalaju Port project is also ongoing in Bintulu. So, there is strong potential for lucrative property plays for Naim Holdings,” said the source.
Samalaju is one of the five growth nodes of Sarawak Corridor of Renewable Energy (SCORE) and it will become the state's new heavy-industry centre.
Meanwhile, HwangDBS Vickers Research said Naim Holdings' MRT contract win underpinned its competitiveness, as it is the first East Malaysian contractor to be awarded one of the main packages of the MRT project.
“Future prospects remain bright with the development of SCORE, where Naim is poised to be one of the largest beneficiaries as the local champion.”
The research unit also said property sales remained robust in Sarawak, supported by the booming oil and gas industry.
Naim Holdings' unbilled sales stood at RM176mil, and the take-up for its new launches has been strong.
“The group generated RM184mil sales last year, the best since 2007. The strong sales performance will translate into sound financial results over the next two years.”
It should be noted that last year, Naim Holdings posted a significant 52.3% drop in net profit to RM46.6mil, compared with RM97.75mil in 2010.
Revenue dropped 32.8% year-on-year to RM411.9mil for the year ended Dec 31, 2011.
In its 2011 annual report, Naim Holdings pointed out that last year was only the second time in its 16-year history that the group has performed below expectations.
However, the group was confident the results were only a temporary setback due to factors such as the slowdown of Federal Government funding for major infrastructure projects in Sarawak, and the nationwide decline in construction margins.
Naim Holdings had posted improved results for the first quarter ended March 31, where its net profit grew 31.5% year-on-year to RM16.1mil. Revenue was 22% lower to RM94.2mil for the quarter under review, and the group attributed the earnings growth to improved margins for its construction segment as well as better performance of its associates and joint ventures, and a decrease in administrative expense.
HwangDBS Vickers Research said an earnings recovery on the horizon for Naim Holdings, and its balance sheet remained strong with 17% net gearing (as at March).
By The Star
IJM upgraded on property upside
IJM CORP BHD
By Kenanga Research
Outperform (upgrade)
Target Price: RM5.74
WE are upgrading our recommendation on IJM from a “market perform” to an “outperform”.
Our upgrade is mainly premised on our in-house upgrade of IJMLand’s target price coupled with its still ample upside (+12%) from the current share price.
Following the recent news on the Selangor water issues, we understand that IJM’s joint venture (JV) project for the Pahang-Selangor Water Transfer Project (PSWT) is currently progressing well at above a 50% completion rate with the project financing, with Japan Bank for International Cooperation (JBIC), still intact. The management is in discussion with the Government to revive the NPE extension project with a new alignment, although the outcome is not likely to be decided in the near term.
Its associate, Kumpulan Europlus (KEURO) is expected to make the announcement on the finalisation of the West Coast Expressway (WCE) concession in the near term.
There are no material changes in our forecasts at this juncture, but we have increased our target price higher from RM5.56 to RM5.74 (+3%) following our upward revision on IJMLand’s revised net asset value (RNAV) for its property project in the United Kingdom.
We understand that there are concerns on the funding of the on-going PSWT project due to the fiasco in the Selangor water industry. To recap, a consortium led by Shimizu was awarded a RM1.3bil tunnelling (45km) contract for the PSWT project at the Pahang site.
IJM holds a 20% stake in the consortium together with UEM Builders (20%), Nishimatsu (30%) and Shimizu (30%). The project is slated for completion by late 2014 and management reiterated that JBIC is still financing the project.
We understand that the management is currently meeting with the Government to refresh the alignment of the proposed NPE highway extension project.
In our view, this could be due to the feasibility of the project and the competition with the existing Besraya Expressway.
Nonetheless, we do not expect the outcome to be out in the near term as the discussion could be prolonged due to land acquisition and final agreement on the concession terms.
In the meantime, the management expects its associate KEURO to announce the update on the signing of the concession agreement for the WCE highway project.
In a nutshell, IJMCorp will likely be running at its full capacity after securing the WCE highway construction works. Its current order book now stands at about RM1.7bil for the next two to three years.
We opine that its earnings visibility is fairly clear at this juncture while the potential WCE highway construction project will provide an additional three years’ earnings visibility to the group.
Risks involved would be the cancellation of the WCE project, a spike-up in material prices, a sharp decrease in CPO prices below RM3100 per metric tonne and slower take-ups for its property projects.
There are no material changes to our forecasts at this juncture even with IJMLand’s recent venture into the UK property market.
We have already factored in new contracts worth RM6bil for FY13, which will be mainly driven by the construction of the WCE highway (RM4bil to RM4.5bil).
By The Star
By Kenanga Research
Outperform (upgrade)
Target Price: RM5.74
WE are upgrading our recommendation on IJM from a “market perform” to an “outperform”.
Our upgrade is mainly premised on our in-house upgrade of IJMLand’s target price coupled with its still ample upside (+12%) from the current share price.
Following the recent news on the Selangor water issues, we understand that IJM’s joint venture (JV) project for the Pahang-Selangor Water Transfer Project (PSWT) is currently progressing well at above a 50% completion rate with the project financing, with Japan Bank for International Cooperation (JBIC), still intact. The management is in discussion with the Government to revive the NPE extension project with a new alignment, although the outcome is not likely to be decided in the near term.
Its associate, Kumpulan Europlus (KEURO) is expected to make the announcement on the finalisation of the West Coast Expressway (WCE) concession in the near term.
There are no material changes in our forecasts at this juncture, but we have increased our target price higher from RM5.56 to RM5.74 (+3%) following our upward revision on IJMLand’s revised net asset value (RNAV) for its property project in the United Kingdom.
We understand that there are concerns on the funding of the on-going PSWT project due to the fiasco in the Selangor water industry. To recap, a consortium led by Shimizu was awarded a RM1.3bil tunnelling (45km) contract for the PSWT project at the Pahang site.
IJM holds a 20% stake in the consortium together with UEM Builders (20%), Nishimatsu (30%) and Shimizu (30%). The project is slated for completion by late 2014 and management reiterated that JBIC is still financing the project.
We understand that the management is currently meeting with the Government to refresh the alignment of the proposed NPE highway extension project.
In our view, this could be due to the feasibility of the project and the competition with the existing Besraya Expressway.
Nonetheless, we do not expect the outcome to be out in the near term as the discussion could be prolonged due to land acquisition and final agreement on the concession terms.
In the meantime, the management expects its associate KEURO to announce the update on the signing of the concession agreement for the WCE highway project.
In a nutshell, IJMCorp will likely be running at its full capacity after securing the WCE highway construction works. Its current order book now stands at about RM1.7bil for the next two to three years.
We opine that its earnings visibility is fairly clear at this juncture while the potential WCE highway construction project will provide an additional three years’ earnings visibility to the group.
Risks involved would be the cancellation of the WCE project, a spike-up in material prices, a sharp decrease in CPO prices below RM3100 per metric tonne and slower take-ups for its property projects.
There are no material changes to our forecasts at this juncture even with IJMLand’s recent venture into the UK property market.
We have already factored in new contracts worth RM6bil for FY13, which will be mainly driven by the construction of the WCE highway (RM4bil to RM4.5bil).
By The Star
S’pore HDB to offer 20,000 flats in 2013
SINGAPORE: The Housing Board (HDB) will deliver at least 20,000 new flats next year.
That is the promise National Development Minister Khaw Boon Wan has given to Singaporeans in a bid to increase home ownership.
“I expect this sustained supply to firmly stabilise the housing market. This will give Singaporeans many options as they make their flat purchases prudently and wisely,” said Khaw on his Housing Matters blog.
The latest infusion of flats comes on the back of the 50,000 flats already promised for the past two years.
The government was also making steady progress in helping newly-wed first-timers land their HDB flats, going by the application rates for the latest Build-To-Order launch, he said.
Application rates for first-timers, or those that have yet to take up a housing subsidy, is 1.7.
“This means that almost all first-timers will get the chance to select a flat when they apply for one, especially in non-mature estates,” he said.
By The Straits Times/Asia News Network
That is the promise National Development Minister Khaw Boon Wan has given to Singaporeans in a bid to increase home ownership.
“I expect this sustained supply to firmly stabilise the housing market. This will give Singaporeans many options as they make their flat purchases prudently and wisely,” said Khaw on his Housing Matters blog.
The latest infusion of flats comes on the back of the 50,000 flats already promised for the past two years.
The government was also making steady progress in helping newly-wed first-timers land their HDB flats, going by the application rates for the latest Build-To-Order launch, he said.
Application rates for first-timers, or those that have yet to take up a housing subsidy, is 1.7.
“This means that almost all first-timers will get the chance to select a flat when they apply for one, especially in non-mature estates,” he said.
By The Straits Times/Asia News Network
Shares in India’s biggest developer rise
NEW DELHI: Shares in India's biggest property developer DLF rose after posting better-than-expected earnings for the three months to June.
DLF, controlled by billionaire Kushal Pal Singh and his family, reported late Monday that net profit fell 18% to 2.9 billion rupees (US$53mil) in the fiscal first quarter, from 3.58 billion rupees a year earlier.
The figure topped the 2.6 billion rupee profit forecast by analysts in a Dow Jones Newswires poll, sending its shares 1.44% higher at 214.35 rupees in morning trade yesterday.
Sales during the quarter slumped 10% to 22 billion rupees from a year earlier as buyers held off on purchases as Asia's third-largest economy falters under the impact of heavy borrowing costs and the weight of a global economic slump.
During the property boom years in the middle of the last decade, DLF took advantage of inexpensive interest rates to build homes, offices and malls.
But its performance now is a far cry from when it announced a full-year profit of US$1.5bil for the financial year 2007-2008 at the top of its earnings cycle and DLF boasted market capitalisation of US$40bil.
Now the capitalisation figure is down to a little more than US$6bil.
DLF has been battling to sell assets as it struggles to pare debts totalling 227 billion rupees.
Interest costs climbed 265% to 6.2 billion rupees during the quarter.
The company has lately been focusing on its home turf of northern India, easing up on plans to pursue a nationwide strategy.
By AFP
DLF, controlled by billionaire Kushal Pal Singh and his family, reported late Monday that net profit fell 18% to 2.9 billion rupees (US$53mil) in the fiscal first quarter, from 3.58 billion rupees a year earlier.
The figure topped the 2.6 billion rupee profit forecast by analysts in a Dow Jones Newswires poll, sending its shares 1.44% higher at 214.35 rupees in morning trade yesterday.
Sales during the quarter slumped 10% to 22 billion rupees from a year earlier as buyers held off on purchases as Asia's third-largest economy falters under the impact of heavy borrowing costs and the weight of a global economic slump.
During the property boom years in the middle of the last decade, DLF took advantage of inexpensive interest rates to build homes, offices and malls.
But its performance now is a far cry from when it announced a full-year profit of US$1.5bil for the financial year 2007-2008 at the top of its earnings cycle and DLF boasted market capitalisation of US$40bil.
Now the capitalisation figure is down to a little more than US$6bil.
DLF has been battling to sell assets as it struggles to pare debts totalling 227 billion rupees.
Interest costs climbed 265% to 6.2 billion rupees during the quarter.
The company has lately been focusing on its home turf of northern India, easing up on plans to pursue a nationwide strategy.
By AFP
Boston Property beats Wall St forecast
NEW YORK: Office building landlord Boston Properties Inc reported quarterly funds from operations, a key measure of real estate investment trust performance, that easily surpassed Wall Street's forecast, in part due to termination income from a tenant at one of its largest buildings.
The company, whose chairman and chief executive is publisher Mortimer Zuckerman, reported second-quarter funds from operations (FFO) of US$206.8mil, or US$1.38 per share, compared with US$181.6mil, or US$1.24 per share in the second-quarter 2011.
Analysts on average expected Boston Properties to post second-quarter FFO of US$1.24 per share, according to Thomson Reuters. The company had forecast second-quarter FFO in the range of US$1.23 to US$1.25 per share.
FFO removes the profit-reducing effect that depreciation, a non-cash item, has on earnings.
Boston Properties owns or has interests in properties that are mainly first-class office buildings in New York, Boston, San Francisco and the Washington DC area.
By Reuters
The company, whose chairman and chief executive is publisher Mortimer Zuckerman, reported second-quarter funds from operations (FFO) of US$206.8mil, or US$1.38 per share, compared with US$181.6mil, or US$1.24 per share in the second-quarter 2011.
Analysts on average expected Boston Properties to post second-quarter FFO of US$1.24 per share, according to Thomson Reuters. The company had forecast second-quarter FFO in the range of US$1.23 to US$1.25 per share.
FFO removes the profit-reducing effect that depreciation, a non-cash item, has on earnings.
Boston Properties owns or has interests in properties that are mainly first-class office buildings in New York, Boston, San Francisco and the Washington DC area.
By Reuters
DreamWorks plans U$3.2b theme park in Shanghai
DREAMWORKS Animation yesterday said it plans to build a US$3.2 billion (RM9.8 billion) theme park in Shanghai, as the US film giant seeks to bolster its presence in the booming Chinese entertainment market.
The studio's newly formed China joint venture, Oriental DreamWorks, is set to open the theme park in 2016, the creator of megahits like "Shrek" and "Kung Fu Panda" said in a statement.
The 20 billion yuan (RM9.8 billion) project - called the Dream Centre - will comprise entertainment facilities, animation exhibitions and commercial developments including hotels and shopping areas in Shanghai's Xuhui district, it said.
The announcement comes after Walt Disney, another US entertainment giant, last year broke ground on a planned US$3.7 billion theme park in Shanghai which is scheduled to open in 2015.
DreamWorks in February said it planned a US$330 million joint venture company with three Chinese partners - China Media Capital, Shanghai Media Group and Shanghai Alliance Investment.
Yesterday's statement posted on DreamWorks' website said it had formally established the joint venture with the partners, all state-backed Chinese firms which together hold a majority 55 per cent stake in the venture.
The company will make the next "Kung Fu Panda" movie, the third instalment in the series, in China as a co-production for release in 2016.
It plans to release up to three major films a year with its first feature-length animated film scheduled for global release in 2017, it said.
The huge commitment in local production comes even though Beijing maintains strict quotas which limit the number of foreign movies allowed into China.
China's box office grew an annual 35 per cent to US$2.0 billion in 2011, making it the second largest international market behind Japan, according to the Motion Picture Association of America.
By AFP
The studio's newly formed China joint venture, Oriental DreamWorks, is set to open the theme park in 2016, the creator of megahits like "Shrek" and "Kung Fu Panda" said in a statement.
The 20 billion yuan (RM9.8 billion) project - called the Dream Centre - will comprise entertainment facilities, animation exhibitions and commercial developments including hotels and shopping areas in Shanghai's Xuhui district, it said.
The announcement comes after Walt Disney, another US entertainment giant, last year broke ground on a planned US$3.7 billion theme park in Shanghai which is scheduled to open in 2015.
DreamWorks in February said it planned a US$330 million joint venture company with three Chinese partners - China Media Capital, Shanghai Media Group and Shanghai Alliance Investment.
Yesterday's statement posted on DreamWorks' website said it had formally established the joint venture with the partners, all state-backed Chinese firms which together hold a majority 55 per cent stake in the venture.
The company will make the next "Kung Fu Panda" movie, the third instalment in the series, in China as a co-production for release in 2016.
It plans to release up to three major films a year with its first feature-length animated film scheduled for global release in 2017, it said.
The huge commitment in local production comes even though Beijing maintains strict quotas which limit the number of foreign movies allowed into China.
China's box office grew an annual 35 per cent to US$2.0 billion in 2011, making it the second largest international market behind Japan, according to the Motion Picture Association of America.
By AFP
Sunway REIT FY12 pretax profit falls to RM420mil
KUALA LUMPUR: Sunway Real Estate Investment Trust’s (Sunway REIT) pretax profit for the financial year ended June 30, 2012, fell to RM420.46mil from RM553.66mil in the same period last year.
Revenue, however, rose to RM406.43mil from RM327.42mil previously.
In a filing with Bursa Malaysia yesterday, Sunway REIT said the retail segment’s revenue rose 23%, or RM54.7mil, to RM292.3mil due to a rental reversion in Sunway Pyramid Mall and better contribution from Sunway Putra Mall.
It said the hotel segment registered gross revenue of RM71.6mil, an increase of 28.6%, or RM15.9mil, compared with last year.
“The strong revenue growth was primarily contributed by Sunway Putra Hotel of RM9.1mil and hotel properties located in Sunway Resort City of RM7.3mil,” it said.
Sunway REIT said the office segment for the financial year recorded gross revenue of RM42.6mil, up 24.6%, or RM8.4mil, from last year, attributable to the addition of Sunway Putra Tower, which mitigated the drop in occupancy at Sunway Tower.
On its prospects, it said domestic demand would provide the support to sustain the economy amid softer external demand.
Sunway REIT said it would continue with its capital management programme in view of the accommodative monetary policy and was committed to distribute 100% of its distributable net income for the financial year ending June 30, 2013.
By Bernama
Revenue, however, rose to RM406.43mil from RM327.42mil previously.
In a filing with Bursa Malaysia yesterday, Sunway REIT said the retail segment’s revenue rose 23%, or RM54.7mil, to RM292.3mil due to a rental reversion in Sunway Pyramid Mall and better contribution from Sunway Putra Mall.
It said the hotel segment registered gross revenue of RM71.6mil, an increase of 28.6%, or RM15.9mil, compared with last year.
“The strong revenue growth was primarily contributed by Sunway Putra Hotel of RM9.1mil and hotel properties located in Sunway Resort City of RM7.3mil,” it said.
Sunway REIT said the office segment for the financial year recorded gross revenue of RM42.6mil, up 24.6%, or RM8.4mil, from last year, attributable to the addition of Sunway Putra Tower, which mitigated the drop in occupancy at Sunway Tower.
On its prospects, it said domestic demand would provide the support to sustain the economy amid softer external demand.
Sunway REIT said it would continue with its capital management programme in view of the accommodative monetary policy and was committed to distribute 100% of its distributable net income for the financial year ending June 30, 2013.
By Bernama
Tuesday, August 7, 2012
Two M’sian firms announce property projects in London in a week
A progressively larger share of the world's capital whether from property firms or cash-rich investment funds has found its way to the global financial hub in recent times, hungry for stable returns in an otherwise anaemic, debt-strapped region.
On Wednesday, Amcorp Properties Bhd said it was entering into a joint venture (JV) to acquire a freehold office building in London's trendy Mayfair district, followed by IJM Land Bhd's Friday revelation of a mixed development on Royal Mint Street.
Analysts have favourably regarded IJM Land's latest venture, saying it diversifies the company's income stream from the current concentration in Malaysia.
To recap, IJM Land took a 51% stake in a JV with Lite Bell Consolidated Sdn Bhd for the project, which will buy a 999-year lease on a 2.7-acre site that has already obtained planning permission to be developed into 650,000 sq ft of gross floor area (GFA).
The site will be leased from Network Rail Infrastructure Ltd for some £20mil (RM97mil).
With a strategic location in the heart of London, the project will boast of “excellent views” of popular landmarks such as the Tower of London, Tower Bridge, Royal Mint Court, St Katharine's Docks and River Thames when completed, as well as superior connection to public transport, being above the National Rail and DLR railway lines.
It is just 1km off the city's financial centre known as the “Square Mile”.
The initial development plans involve a block of five-star hotel cum residences and three blocks of residential apartments with a combined gross development value (GDV) of £280mil (RM1.4bil).
In a filing with the stock exchange, IJM Land said the favourable exchange rate and lack of funding for property developers in London given the eurozone crisis provided a “window of opportunity” for its UK undertaking.
Affin Investment Bank said in a client note that the effective acquisition price of £30.80 per GFA was fair compared with the £74.10 paid by Sime Darby Property Bhd and SP Setia Bhd for the Battersea power station.
“The land cost to GDV ratio of 7.1% is also slightly more attractive than the 7.5% of SP Setia-Sime's acquisition.
“Importantly, we are generally positive on the medium-term outlook for London property given the strong interest from global buyers, including Malaysian high-networth individuals,” it explained.
Kenanga Research, meanwhile, opined that the guided GDV of RM1.4bil was conservative.
“Management is indicating average selling prices of £1,000 to £1,100 psf, which is saleable considering the area's pricing range of £1,000 to £1,500 psf.
“However, if we assume a very conservative 50% utilisation rate on the 650,000 sf of GFA with average selling prices of £1,000 psf, we arrive at a GDV of £325mil (RM1.6bil).
“We also understand that the group will maintain prices below £2mil per unit to avoid the higher stamp duty of 7% on any sales (usually 5% or less),” it noted.
The research unit added that there were no issues as far as funding was concerned, with IJM Land's net gearing expected to inch up to 0.1 times from a net cash position in its fourth quarter ended March 31, assuming a 70:30 debt-equity financing of the land and working capital of £30mil.
“The project will only be launched in the fourth quarter of the financial year 2014 (FY2014), implying significant earnings contributions from FY2015 onwards.
“In the short to medium term, the sales drivers will be from The Light Waterfront and its stable of mass housing projects (Shah Alam 2, S2@Seremban, Johor projects) plus its long-awaited township, Rimbayu, which is slated to have a GDV of RM11bil," Kenanga Research said, noting the launch preview for Rimbayu could take place this month.
It also pointed out that IJM Land is aiming to achieve RM1.5bil in sales in FY2013.
A weak pound, coupled with low interest rates, has helped propel institutional investors from the Far East to become the biggest buyers of central London office properties, real estate consultancy CBRE reportedly said last month.
Malaysia is now ranked second only to the US in a list of the top five investors in London by total investment volume between 2010 and the second quarter this year, with £2.35bil and £3.53bil ploughed in by both countries respectively.
Rounding off the list were Germany with £1.29bil, Saudi Arabia £969mil and Qatar £750mil.
By The Star
Mah Sing earnings forecast to hit RM209m
KUALA LUMPUR: AmResearch estimates that Mah Sing Group Bhd's earnings to rise from RM169 million in financial year 2011 to RM209 million in financial year 2012.
The forecast also includes RM260 million earnings in financial year 2013 and RM320 million in financial year 2014.
The research house said the estimation comes along with a three-year earnings compound 24 per cent annual growth rate, anchored by in-demand landed residential developments namely, M Residence 1&2 and Southville City.
"The group's earnings are very much secured with current RM2.5 billion unbilled sales," said the research house.
AmResearch said the annual pre-sales are expected to rise to RM3.5 billion in financial year 2013 and to RM4 billion in financial year 2014.
"The net gearing is expected to rise to 0.5 with one or two more land acquisitions by year end, but this is still within a comfortable level and should be pared down by its solid cashflows," it said in a research note.
AmResearch said Mah Sing has a 40 per cent dividend payout policy now and it expects the group to pay 11 sen to 15 sen dividend per share for financial year 2012 until 2014, translating to decent yields of four to six per cent.
The research house has put a "buy" rating, with RM3.60 fair value for the initiating coverage on Mah Sing based on a mid-cycle discount to its estimated RM4.80 per share net asset value.
By Bernama
The forecast also includes RM260 million earnings in financial year 2013 and RM320 million in financial year 2014.
The research house said the estimation comes along with a three-year earnings compound 24 per cent annual growth rate, anchored by in-demand landed residential developments namely, M Residence 1&2 and Southville City.
"The group's earnings are very much secured with current RM2.5 billion unbilled sales," said the research house.
AmResearch said the annual pre-sales are expected to rise to RM3.5 billion in financial year 2013 and to RM4 billion in financial year 2014.
"The net gearing is expected to rise to 0.5 with one or two more land acquisitions by year end, but this is still within a comfortable level and should be pared down by its solid cashflows," it said in a research note.
AmResearch said Mah Sing has a 40 per cent dividend payout policy now and it expects the group to pay 11 sen to 15 sen dividend per share for financial year 2012 until 2014, translating to decent yields of four to six per cent.
The research house has put a "buy" rating, with RM3.60 fair value for the initiating coverage on Mah Sing based on a mid-cycle discount to its estimated RM4.80 per share net asset value.
By Bernama
Sunway REIT profit fell to RM420m in FY12
Sunway Real Estate Investment Trust's (Sunway REIT) pre-tax profit for financial year ended June 30, 2012, fell to RM420.46 million from RM553.66 million in the same period last year.
Revenue, however, rose to RM406.43 million from RM327.42 million previously.
In a filing to Bursa Malaysia today, Sunway REIT said the retail segment's revenue rose 23 per cent, or RM54.7 million, to RM292.3 million due to a rental reversion in Sunway Pyramid Mall and better contribution from Sunway Putra Mall.
It said the hotel segment registered gross revenue of RM71.6 million, an increase of 28.6 per cent, or RM15.9 million, compared with last year.
"The strong revenue growth was primarily contributed by Sunway Putra Hotel of RM9.1 million and hotel properties located in Sunway Resort City of RM7.3 million," it said.
Sunway REIT said the office segment for the financial year recorded gross revenue of RM42.6 million, up 24.6 per cent, or RM8.4 million, from last year, attributable to the addition of Sunway Putra Tower, which mitigated the drop in occupancy at Sunway Tower.
On prospect, it said domestic demand would provide the support to sustain the economy amid softer external demand.
Sunway REIT said it would continue with its capital management programme in view of the accommodative monetary policy and was committed to distribute 100 per cent of its distributable net income for the financial year ending June 30, 2013.
By Bernama
Revenue, however, rose to RM406.43 million from RM327.42 million previously.
In a filing to Bursa Malaysia today, Sunway REIT said the retail segment's revenue rose 23 per cent, or RM54.7 million, to RM292.3 million due to a rental reversion in Sunway Pyramid Mall and better contribution from Sunway Putra Mall.
It said the hotel segment registered gross revenue of RM71.6 million, an increase of 28.6 per cent, or RM15.9 million, compared with last year.
"The strong revenue growth was primarily contributed by Sunway Putra Hotel of RM9.1 million and hotel properties located in Sunway Resort City of RM7.3 million," it said.
Sunway REIT said the office segment for the financial year recorded gross revenue of RM42.6 million, up 24.6 per cent, or RM8.4 million, from last year, attributable to the addition of Sunway Putra Tower, which mitigated the drop in occupancy at Sunway Tower.
On prospect, it said domestic demand would provide the support to sustain the economy amid softer external demand.
Sunway REIT said it would continue with its capital management programme in view of the accommodative monetary policy and was committed to distribute 100 per cent of its distributable net income for the financial year ending June 30, 2013.
By Bernama
Pavilion REIT's earnings forecast raised
KUALA LUMPUR: Maybank Kim Eng Research has raised the financial year 2012-2014 earnings forecast of Pavilion Real Estate Investment Trust (Pavilion REIT)by eight to 8.4 per cent.
It also factored in a higher rental growth and turnover rent as well as higher occupancy rate.
Maybank Kim Eng in a research note today said Pavilion REIT's first half net profit of RM95.6 million was above the research house and consensus expectations at 55 to 56 per cent.
"This was due mainly to higher-than-expected retail turnover rent and rental hikes," it said.
Going forward, it said piling works of the Pavilion KL Mall extension will commence in the third quarter, whilst construction of the sub-urban mall in Subang Jaya is ahead of schedule.
"As for the Fahrenheit 88 mall, the management is monitoring the leases due for renewal in the third quarter, rental reversions and tenancy profile.
"When acquired, we expect these properties to raise Pavilion REIT's asset size by more than 41 per cent from RM3.6 billion currently," it added.
Maybank Kim Eng has maintained a "hold" call on Pavilion REIT but revised upward the target price to RM1.40 from RM1.26 previously.
By Bernama
It also factored in a higher rental growth and turnover rent as well as higher occupancy rate.
Maybank Kim Eng in a research note today said Pavilion REIT's first half net profit of RM95.6 million was above the research house and consensus expectations at 55 to 56 per cent.
"This was due mainly to higher-than-expected retail turnover rent and rental hikes," it said.
Going forward, it said piling works of the Pavilion KL Mall extension will commence in the third quarter, whilst construction of the sub-urban mall in Subang Jaya is ahead of schedule.
"As for the Fahrenheit 88 mall, the management is monitoring the leases due for renewal in the third quarter, rental reversions and tenancy profile.
"When acquired, we expect these properties to raise Pavilion REIT's asset size by more than 41 per cent from RM3.6 billion currently," it added.
Maybank Kim Eng has maintained a "hold" call on Pavilion REIT but revised upward the target price to RM1.40 from RM1.26 previously.
By Bernama
Monday, August 6, 2012
Kwasa Land: No plans to partner Dijaya Corp
PETALING JAYA: Kwasa Land, a wholly-owned unit of the Employees Provident Fund (EPF) and master developer for the redevelopment of Rubber Research Institute of Malaysia (RRIM) land in Sungai Buloh, has denied talk that it is partnering Dijaya Corp Bhd.
In a statement released yesterday, Kwasa Land stated that a newsreport titled "EPF and Dijaya may develop RRIM Land" published two days ago was unfounded.
The company reiterated that so far, it has not selected any property developers as partners for the RRIM re-development.
"We view such speculative stories with concern as there will be a clear process for developers to qualify as potential partners for this development," said Kwasa Land chief executive officer Mohd Lotfy Mohd Noh.
"We will announce our pre-qualification process shortly, inviting developers to submit their credentials for short-listing by the master developer," he added.
Kwasa Land was established in September 2010 to manage the EPF's multi-billion property development investments in the country.
The government has asked Kwasa Land to incorporate an integrated transportation system into Sungai Buloh, like that of KL Sentral, into the new township and link it via mass rapid transit MRT to the rest of Klang Valley.
By Business Times
In a statement released yesterday, Kwasa Land stated that a newsreport titled "EPF and Dijaya may develop RRIM Land" published two days ago was unfounded.
The company reiterated that so far, it has not selected any property developers as partners for the RRIM re-development.
"We view such speculative stories with concern as there will be a clear process for developers to qualify as potential partners for this development," said Kwasa Land chief executive officer Mohd Lotfy Mohd Noh.
"We will announce our pre-qualification process shortly, inviting developers to submit their credentials for short-listing by the master developer," he added.
Kwasa Land was established in September 2010 to manage the EPF's multi-billion property development investments in the country.
The government has asked Kwasa Land to incorporate an integrated transportation system into Sungai Buloh, like that of KL Sentral, into the new township and link it via mass rapid transit MRT to the rest of Klang Valley.
By Business Times
Kenanga Research positive on IJM Land UK venture
KUALA LUMPUR: Kenanga Investment Research is positive on IJM Land Bhd's venture into the UK with a joint venture to build a five-star hotel, residential apartment, which will have a gross development value (GDV) of £280mil (RM1.4bil).
IJM Land had on Friday entered into a shareholders' agreement with Lite Bell Consolidated Sdn Bhd to form a joint venture company in Jersey -- Mintle Ltd -- to acquire a 999-year lease over a 2.7-acre site.
The working capital to be funded by the company to develop the property would be between £25mil and £30mil.
"We are positive on the venture as the group is now seeking new earnings growth avenues in overseas given its already high earnings base in Malaysia," it said.
Kenanga Research said the project would see mid- to high-end apartments with a guided average selling price of £1,000-£1,100 psf. It reckoned the guided GDV was still extremely conservative. It added land cost was fair, based on the gross margin guidance of 25%. "There are no issues with the financing of the project by IJM Land. We expect the group's net gearing to inch up to 0.1 times from a 4Q12 net cash position of 0.1 times, assuming a 70:30 debt-equity financing of the land and a £30m working capital," said the research house.
By The Star
IJM Land had on Friday entered into a shareholders' agreement with Lite Bell Consolidated Sdn Bhd to form a joint venture company in Jersey -- Mintle Ltd -- to acquire a 999-year lease over a 2.7-acre site.
The working capital to be funded by the company to develop the property would be between £25mil and £30mil.
"We are positive on the venture as the group is now seeking new earnings growth avenues in overseas given its already high earnings base in Malaysia," it said.
Kenanga Research said the project would see mid- to high-end apartments with a guided average selling price of £1,000-£1,100 psf. It reckoned the guided GDV was still extremely conservative. It added land cost was fair, based on the gross margin guidance of 25%. "There are no issues with the financing of the project by IJM Land. We expect the group's net gearing to inch up to 0.1 times from a 4Q12 net cash position of 0.1 times, assuming a 70:30 debt-equity financing of the land and a £30m working capital," said the research house.
By The Star
Saturday, August 4, 2012
ETP drives demand for luxury condominiums
The various initiatives announced under the Economic Transformation Programme (ETP) is said to be attracting investment opportunities into the country and in turn, boosting the demand for luxury condominiums in Malaysia.
Just ask Johor-based property developer BCB Bhd, which has seen good response for its luxury condominium development, Concerto Kiara @ Mont Kiara.
“We launched it in early July and about 80% of our first phase have already been snapped up,” group managing director Datuk Robert Tan Seng Leong tells StarBizweek.
According to him, Concerto Kiara @ Mont Kiara comprises 440 units of luxury condominiums with a gross development value of RM580mil and will be built in three phases. The first phase will comprise some 166 units.
“Currently, the first phase is still under construction and should be completed within the next three to four years,” said Tan, adding that the price of the units start from around RM630 per sq ft.
The size of the units range from 1,580 sq ft to around 1,900 sq ft.
“We are targeting both local and foreign buyers,” said Tan. He says some of local buyers were from as far as Johor.
“We are also targeting those local buyers that have gone abroad for a while and who are looking for that similar (overseas) lifestyle here in Malaysia. This group of people can afford our properties,” he says.
According to the Property Market Report 2012 by C.H. Williams Talhar & Wong, the demand for luxury condominium properties in the Klang Valley has continued to increase.
“The influential force that is creating demand for properties in the Klang Valley is the ETP initiated by the Government to transform Malaysia into a high income economy by the year 2020.
“Encouraged by the Government through liberalisation and tax incentives, more foreign companies are expected to invest in the country and consequently, increase the entry of more expatriates and demand for up-market residences.
“This will create demand for condominium properties especially in the up-market sector.”
The report went on to note that with these expectations, several developers have introduced newer designs and innovative concepts in their latest projects.
Meanwhile, asked if Concerto Kiara @ Mont Kiara is expensive, Tan says: “Many also buy it for investment purposes. They are worried that the price will escalate further in the future.”
He also says having luxury condominiums would be in line with the Government's Greater Kuala Lumpur/Klang Valley National Key Economic Area (NKEA) 2020.
According to reports, the Greater Kuala Lumpur/Klang Valley NKEA 2020 targets are to be in the top 20 most livable cities list and the top 20 in economic growth.
The goals under this NKEA are to be realised through the implementation of nine Entry Point Projects (EPPs) and the two business opportunities. These include improving the city's attractiveness to foreign multinational companies (MNCs) and foreign talent, putting in place an efficient public transport system and enhancing the ambience of the city by improving its physical environment through various initiatives.
Intensive efforts are ongoing to upgrade the water quality of Kuala Lumpur's main rivers and beautifying and developing its surroundings via the River of Life EPP, going green through the planting of more trees in the city, developing iconic places within the city and providing comfortable walkways for the pedestrians.
There are also plans to enhance solid waste management and sewerage services for the metropolis, as well as efforts to improve housing opportunities and to vitalise Putrajaya.
It is envisaged that initiatives under the Greater Kuala Lumpur/Klang Valley NKEA would contribute RM190bil in gross national income over the next 10 years and create over 300,000 jobs.
An analyst from a local bank-backed brokerage noted that the property sector was a “safer heaven” as far as investments are concerned.
“I foresee more foreign investors putting their money in our local property market, in light of the various initiatives announced by the Government to make Kuala Lumpur more vibrant and liveable.
“Also, Malaysian property prices are cheaper compared with other countries around the world,” she says, adding that she also expects to see more local investors taking their money out of the local stock market and putting it into the local property market.
According to C.H. Williams Talhar & Wong's Property Market Report 2012, there were 22,877 luxury condominiums and serviced apartment units in the Klang Valley as at end-2011. It noted that over 50% of the new developments completed last year were located within the Mont Kiara/Sri Hartamas area.
It said that the average occupancy rate for the condominium market remained stable at about 68%.
“Occupancy for condominium had declined to 69.5% from 70.3% in 2010, while serviced residences recorded a slight improvement of 67.1% from 66.8% in 2010.
“In addition, latest launches comprised smaller and more affordable unit sizes of 500 sq ft to 1,000 sq ft with selling prices ranging from RM850 per sq ft to RM2,000 per sq ft in the KLCC area, RM700 per sq ft to RM1,200 per sq ft in Mont Kiara/Sri Hartamas and Kenny Hills areas.”
In terms of outlook, the report states that luxury condominium developments will face a threat from the large incoming supply in the future.
“Developers are also marketing actively to foreign investors as the prices for luxury condominiums in Kuala Lumpur are still considered relatively cheap as compared with other countries such as Hong Kong and Singapore.
“In addition, the pro-active measures from the Government, efforts to promote the Malaysia My Second Home as well as the lifting of Foreign Investment Committee's approval in purchasing the properties by foreigners will boost the luxury condominium sector.”
The report added that occupancy rates and condominium rentals will be on a downtrend as new units enter the rental market at a faster rate than the slower projected demand from working expatriate professionals entering Malaysia.
“Buyers are still actively looking for condominium properties for investments in the KLCC and Mont Kiara areas but are now have more leeway for negotiation of prices.”
By The Star
Penthouses of St Mary Residences will be sold with the option of owning a Lamborghini
In what may well be the first time a developer collaborates with a car company in order to sell a property, both being big ticket items, the flavour of this partnership between Eastern & Oriental Bhd (E&O) and Lamborghini has an intoxicating whiff of big names, superb brands and luxury all coming together.
The partnership has several elements that are difficult to ignore. First, the aspect of consumerism today. It is a subject that can lead to many lessons in marketing, retail, advertising and promotion. Is opting for the branded the way to go? For many consumers, the answer is Yes because branding, more often than not, equates quality. So there is a price to be paid for quality.
On another aspect, if one were to stay focus and not be distracted by the gleaming wheels of the sports car, what is the way ahead for the high-end property market? Will other developers also co-brand in order to sell their properties?
In the property world, the E&O group is nothing less than innovation, luxury and lifestyle all rolled into one. It has always been the first to market.
Says E&O deputy managing director Eric Chan: “The direction the high end property sector will take depends on how the regional market responds to what we have in Kuala Lumpur. There is value here.”
The last decade or so, in many ways, the niche developer has been rather bold and innovative.
Consider the following. Before the Kuala Lumpur City Centre (KLCC) became the sought after location it is today although it is beyond the reach of a majority of the Malaysian population E&O came up with Dua Residency, the first luxurious condominium development with built-ups of more than 2,000 sq ft and beyond. At a time when few have seen or experienced such luxury, except for high net worth individuals, Dua was sold starting from RM500 to RM600 per sq ft. Today, those units average about RM900 per sq ft.
A couple of years after that in 2006/07, nearly every developer who had the resources tried to enter that KLCC market.
In June 2009, months after the 2008 global financial crisis, E&O boldly launched St Mary Residences, at Jalan Tengah, off Jalan Sultan Ismail, Kuala Lumpur.
It was the first developer to launch anything after the September 2008 fall of Lehman Brothers. Unlike Dua Residency where units were predominantly more than 2,000sq ft and above, the developer changed strategies in 2009 by offering quite a number of one-bedroom units of about 1,000sq ft.
Hungary for launches, its introduction of St Mary Residences saw a strong 80% take-up rate after just a five-day preview, at an average price of about RM900 per sq ft. St Mary Residences is located on four acres of former church land. Three blocks were built. Two blocks were sold and one named E&O Residences. These 200-unit block was “given” to the Synod of the Diocese of West Malaysia in exchange for the land. Besides the serviced apartment block, the church also negotiated for the building of a school in Selayang.
E&O will be operating and managing E&O Residences for 15 years, with the option to extend for another five. It will offer luxury short-term stays. Thus far, all the units in the two remaining blocks have been sold with the exception of three super penthouse units. Next week, purchasers who bought into the development will be getting their keys.
Here is where the co-branding comes in. The three penthouses, with a built-up of about 7,000sq ft, are priced between RM10mil and RM12.18mil. They are being sold with the option for purchasers to own a Lamborghini Gallardo.
Lamborghini Kuala Lumpur chief operating officer Marcus Chye says there are about 200 units of Lamborghini in Malaysia, but there are only 20 Gallardo models. Thirteen have been sold, and three have been put aside for this special partnership with E&O.
Those familiar with the luxurious car market says the Lamborghini is at the top end of the sports car range with aspiring new entrants buying a Lotus which costs about RM500,000 before moving on to a Porsche, then a Ferrari, if they are die-hard collectors.
But why a Lamborghini and not a Bentley or a Rolls Royce?
Says Chye: “The best goes with the best.”
The Bentley and the Rolls Royce are business cars, says Chye. “You go to meetings, dinners and to the office with a Bentley or a Rolls Royce. The Lamborghini is for the weekend.”
Unlike the perception of many that the Lamborghini owner belongs to the 30-to-40-something age group, Chye begs to differ.
Some clients are older and wiser, he says.
Which thus solves the question of who will buy E&O's super penthouses priced between RM10mil and RM12mil. Purchasers cannot contra the price of the property with the price of the car.
Says Chan: “They will get the car at a very special rate.”
Both Chan and Chye are of the view that when it comes to super brands and premium luxury the likes of E&O and Lamborghini, there is “no question of a discount.”
Says Chye: “The Lamborghini is a lifestyle. Just like properties today.”
By The Star
EPF and Dijaya may develop RRIM land
Currently, the RRIM land that begins from the Sungai Buloh My Rapid Transit Depot in the north and ends with its southern portion bordering the Tropicana Golf & Country Resort, belongs to Dijaya.
The source said that the EPF would need an access road connecting the RRIM land to Petaling Jaya, and that access road would have to cut across the Tropicana Golf resort.
“Dijaya will probably need to relocate a small part of its golf course to make way for this access road. At the same time, the EPF has also invited Dijaya to jointly develop certain parcels of the RRIM land. While no concrete details have been decided, both parties have expressed their intention to work together,” it said.
The source added that the EPF wanted to start developing the RRIM land from the south, as it would make more commercial sense.
“By developing from the Tropicana side, it will also be easier for the EPF, as it is empty lots on that side, and hence being less complicated to develop.
“The mid-portion of the RRIM land is already developed and needs to be teared down and redone. Furthermore, land beside the Tropicana Golf Resort will also fetch better pricing for now,” it said.
When contacted, a spokesperson for the EPF said this market talk was not true.
Currently Dijaya is also in the midst of an amalgamation deal where in April it entered into agreements with several vendors for a proposed acquisition of 73 properties, comprising 49 parcels of land and 16 buildings, for RM949.9mil.
Meanwhile, it is understood that Kwasa Land Sdn Bhd, which is the EPF's wholly-owned unit, will be calling for bids for the RRIM land in Sungai Buloh by year-end. Kwasa Land is the master planner for the RRIM development.
Pre-qualification bids will be opened to developers who meet the requirements, which will include financial muscle, reputation and innovation, according to recent reports.
Kwasa Land is expected to divide out the RRIM land in portions of 20ha to 200ha each, which will be used to develop affordable residential and commercial properties.
The other parts of the RRIM land is to house the Malaysian Rubber Board hub (217ha) and the My Rapid Transit Sungai Buloh depot (72ha).
The redevelopment of the RRIM land is part of the greater Kuala Lumpur Strategic Development initiative and is a project under the 10th Malaysia Plan. The EPF is buying 890ha of the available 1,215ha RRIM agricultural land from the Federal Government for over RM2bil.
By The Star
IJM Land in UK venture
PETALING JAYA: IJM Land Bhd is venturing into the United Kingdom via a joint venture to build a five-star hotel and residential apartments that will have a gross development value (GDV) of £280mil (RM1.4bil).
The company told Bursa Malaysia yesterday it had entered into a shareholders' agreement with Lite Bell Consolidated Sdn Bhd to form a joint-venture company, Mintle Ltd, in Jersey to acquire a 999-year lease over a 2.7 acre site with detailed planning consent for about 650,000-sq-ft space.
The site is predominantly situated above the National Rail and DLR railway lines adjacent to the Royal Mint Street in central London.
Mintle also acquired one share of £1 each in dormant company RMS (England) Ltd for £1. RMS England and Mintle would undertake a mixed-use development on the property.
Network Rail Infrastructure Ltd is the freehold owner of the property and granted ZBV (RMS) Ltd an option to acquire the lease of the property.
The working capital to be funded by the company to develop the property would be between £25mil and £30mil.
“The joint venture is part of a strategic move by the group to expand its property development footprint beyond Malaysia and is in line with its long-term vision of being an internationally admired property developer,” it said.
IJM Land added that the current favourable exchange rate regime and the lack of funding opportunity for property developers in London due to the eurozone crisis provided a window of opportunity to venture into the mature and international central London property scene.
“The company's ability to attract a number of buyers from the Asian region, who are one of the biggest groups of property investors in London in recent times, also augurs well for the project,” it said.
IJM Land said the project, when completed, would have “excellent views of the popular London landmarks such as Tower of London, Tower Bridge, Royal Mint Court, St. Katharine's Docks and River Thames.”
It said the project, granted detailed planning consent in April 2012, comprised one block of 5-star hotel-cum-residential apartments and three blocks of residential apartments with a total gross built-up area of 650,000 sq ft.
“The gross development value of the project is expected to be around £280mil. The cost will be funded via a combination of borrowings and internal funds, the details of which have yet to be determined,” it said.
By The Star
The company told Bursa Malaysia yesterday it had entered into a shareholders' agreement with Lite Bell Consolidated Sdn Bhd to form a joint-venture company, Mintle Ltd, in Jersey to acquire a 999-year lease over a 2.7 acre site with detailed planning consent for about 650,000-sq-ft space.
The site is predominantly situated above the National Rail and DLR railway lines adjacent to the Royal Mint Street in central London.
Mintle also acquired one share of £1 each in dormant company RMS (England) Ltd for £1. RMS England and Mintle would undertake a mixed-use development on the property.
Network Rail Infrastructure Ltd is the freehold owner of the property and granted ZBV (RMS) Ltd an option to acquire the lease of the property.
The working capital to be funded by the company to develop the property would be between £25mil and £30mil.
“The joint venture is part of a strategic move by the group to expand its property development footprint beyond Malaysia and is in line with its long-term vision of being an internationally admired property developer,” it said.
IJM Land added that the current favourable exchange rate regime and the lack of funding opportunity for property developers in London due to the eurozone crisis provided a window of opportunity to venture into the mature and international central London property scene.
“The company's ability to attract a number of buyers from the Asian region, who are one of the biggest groups of property investors in London in recent times, also augurs well for the project,” it said.
IJM Land said the project, when completed, would have “excellent views of the popular London landmarks such as Tower of London, Tower Bridge, Royal Mint Court, St. Katharine's Docks and River Thames.”
It said the project, granted detailed planning consent in April 2012, comprised one block of 5-star hotel-cum-residential apartments and three blocks of residential apartments with a total gross built-up area of 650,000 sq ft.
“The gross development value of the project is expected to be around £280mil. The cost will be funded via a combination of borrowings and internal funds, the details of which have yet to be determined,” it said.
By The Star
IJM Land in joint venture with Lite Bell
KUALA LUMPUR: IJM Land Bhd has entered into a shareholders’ agreement with Lite Bell Consolidated Sdn Bhd to form a 51:49 joint venture, Mintle Ltd, to undertake a RM1.4 billion mixed-use development in London.
In a filing to Bursa Malaysia yesterday, IJM Land said Mintle will acquire 1.08 hectare above the national rail and DLR railway lines adjacent to the Royal Mint Street in Central London, for the project.
By Business Times
In a filing to Bursa Malaysia yesterday, IJM Land said Mintle will acquire 1.08 hectare above the national rail and DLR railway lines adjacent to the Royal Mint Street in Central London, for the project.
By Business Times
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