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BLand to buy land from BCity for RM155mil

Extract from The Star (23/9/2016)

PETALING JAYA: Berjaya Land Bhd (BLand) is proposing to acquire 871.01 acres in Ulu Selangor from BerjayaCity Sdn Bhd (BCity) in a related party transaction worth RM155mil.

In a filing with Bursa Malaysia yesterday, BLand said the proposed acquisition provides an opportunity for the BLand group to increase its land bank.

The company said its 100%-owned subsidiary, Alam Baiduri Sdn Bhd, had entered into a sale and purchase agreement with BCity, a 100%-owned subsidiary of Berjaya Corp Bhd, for the acquisition of the freehold plots of land at RM177,954 per acre.

“The proposed acquisition will not have any material effect on the consolidated earnings of BLand for the current financial year ending April 30, 2017 (FY17).

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PR1MA: Access to end-financing critical to success of public housing schemes

Extract from The Sun Daily (23/9/2016)

PETALING JAYA: Affordable housing programme champion PR1MA has come out to reiterate that easier end-financing access for home buyers remains a critical component to ensure the success of Malaysia’s public housing programmes.

CEO Datuk Abdul Mutalib Alias told SunBiz via a statement that while PR1MA abides by Bank Negara Malaysia’s decision to retain the 35 years maximum housing loan repayment period, he pointed out that end-financing is a pertinent issue that cannot be ignored in an effort to resolve home ownership woes among the middle-income group with a monthly household income of between RM2,500 and RM10,000 (the M40 group).

As an agency mandated specifically to look into the housing needs of the middle income group, he said, PR1MA understands the challenges faced by this particular group, also known as the “sandwiched group”.

“From the analysis of our registrants’ database and various surveys, we are very much aware of the financial hardship faced by this group. They too are affected by the escalating cost of living and are not spared.

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Public Sector Home Financing Board issues maiden RM4b sukuk

Extract from The Sun Daily (23/9/2016)

PETALING JAYA: The Public Sector Home Financing Board (LPPSA), a statutory body established under the Public Sector Home Financing Board Act 2015, successfully issued its maiden sukuk of up to RM4.0 billion to finance the provision of housing loans to the civil servants yesterday.

The issuance was oversubscribed more than three times. The sukuk issued in tranches of three-year to 30-year was priced at 3.5% to 4.90% per annum across tenures.

LPPSA said in a statement the strong demand demonstrates LPPSA’s credential as a new sukuk issuer with a strong credit standing.

The RM4.0 billion sukuk forms part of LPPSA’s RM25.0 billion Islamic Commercial Papers/Islamic Medium Term Notes Programme and is guaranteed by the Malaysian government.

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Sarawak disagree with the move to allow loans by housing developer

Extract from Bernama (22/9/2016)

KUCHING: Sarawak would not adopt the move by the Ministry of Urban Wellbeing, Housing and Local Government to allow private housing developers to give loans to homebuyers.

Deputy Chief Minister Datuk Amar Abang Johari Tun Abang Haji Openg said this is because such a move could pose financial risks to the developers as the scheme may not be sustainable in the long-term.

He said the move may also increase the cost of end-financing, distract developers from carrying out their core business, as well as expose them to borrower default risk over the long-term especially if the homebuyers' credit-worthiness is an issue.

"To ensure responsible lending, it would be better and more prudent for the perspective house buyers to secure their loans from established banks and financial institution," he said in a press conference at the Land Custody and Development Authority (PELITA) office at Wisma Satok, here Thursday.

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LPPSA's RM4 bln sukuk issuance oversubscribed three times

Extract from Bernama (22/9/2016)

KUALA LUMPUR: The Public Sector Home Financing Board's (LPPSA) RM4 billion sukuk issuance has been oversubscribed more than three times at highly competitive rates.

In a statement, the statutory body, established under the Public Sector Home Financing Board Act 2015, said the strong demand demonstrated LPPSA's credential as a new sukuk issuer in the market with strong credit standing.

"The sukuk was issued to finance the provision of housing loans to civil servants.

"The RM4 billion Islamic Medium-Term Notes formed part of LPPSA's RM25.0 billion Islamic Commercial Papers/Islamic Medium-Term Notes Programme and is guaranteed by the Malaysian government," it said.

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Sunway opens sales office in Dubai

Extract from The Star (22/9/2016)

KUALA LUMPUR: Sunway Hotels and Resorts, the hospitality division of Malaysian conglomerate Sunway Group, has opened a regional sales office in Dubai, the United Arab Emirates.

In a statement, Sunway Hotels and Resorts said the office, which began operations on Aug 15, is part of Sunways international market expansion strategy to further strengthen its presence in the Middle East and Africa, and to develop new opportunities from previously untapped markets in the region.

It said the set-up is in partnership with Dubai-based BizGate Marketing and Consultancies with the focus on promoting Sunway Hotels and Resorts 11 properties in Malaysia, Cambodia and Vietnam. — Bernama

Rehda wants end-financing rules eased

Extract from The Star (22/9/2016)

PETALING JAYA: Real Estate and Housing Developers Association (Rehda) has called for easing in the end-financing regulations for property purchases in Malaysia.

Rehda president Datuk Seri Fateh Iskandar Mohamed Mansor said this was necessary to help first-time buyers own affordable homes.

To recap, problems on the failure of securing financing for property purchases had been making headlines in recent times.

Rehda’s Property Industry Survey for the first half of 2016 revealed that end financing and loan rejection remained a major problem for nearly 70% of the respondents and it had spread to affect almost all price ranges.

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Ministry meets stakeholders on developer loans proposal

Extract from The Sun Daily (22/9/2016)

PETALING JAYA: Interest rates, loan rejections and conflict of interest were some of the issues brought up at a meeting hosted by the Urban Wellbeing, Housing and Local Government Ministry yesterday.

The meeting was held to obtain feedback from industry stakeholders on the ministry’s decision to allow property developers to offer loans to house buyers.

It is understood that the Real Estate and Housing Developers’ Association Malaysia (Rehda), National House Buyers Association, Association of Banks Malaysia and Malaysian Licensed Money Lenders Association attended the 1½-hour long meeting.

The interest rate for such loans was one of the pertinent points of discussion. Although Urban Wellbeing, Housing and Local Government Minister Tan Sri Noh Omar has said the interest rate should be capped at 6% a year, concerns were raised as property developers’ finance costs alone can come up to that figure.

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No shortage of affordable homes, says Glomac

Extract from The Sun Daily (22/9/2016)

KUALA LUMPUR: There is no shortage of affordable homes in the country, only the issue of end-financing, according to Glomac Bhd.

Its group managing director and CEO Datuk Seri Fateh Iskandar Mohamed Mansor said obtaining a loan is still the main concern as house buyers are faced with end-financing rejection and lower margin of financing offered by financial institutions.

His comments directly contradict Bank Negara Malaysia’s (BNM) statement on Tuesday which rubbished claims that access to financing was the main woe for affordable housing buyers and instead called for resolution of fundamental issues such as affordability and the shortage of supply of reasonably priced houses.

“In certain locations, there is a mismatch of supply and demand for affordable homes but there is no shortage of the supply of affordable homes anywhere,” Fateh told a press conference after Glomac’s AGM here yesterday.

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Glomac: No shortage of affordable housing

Extract from The Sun Daily (21/9/2016)

KUALA LUMPUR: There is no shortage of affordable homes in the country, only the issue of end-financing, according to Glomac Bhd.

Its group managing director and CEO Datuk Seri Fateh Iskandar Mohamed Mansor said loan is still the main thing.

"In certain locations, there is a mismatch of supply and demand for affordable homes but there is no shortage of the supply of affordable homes anywhere," he told a press conference after its AGM here this afternoon.

Fateh is also the Real Estate and Housing Developers’ Association Malaysia (Rehda) president.

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