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SP Setia On Track To Hit RM3B Sales Target


Extract from Business Times (10/12/10)

Property developer SP Setia Bhd (8664) declined to comment on speculation of a merger but stressed that it is on track to achieve RM3 billion sales target for 2011.

The Edge weekly magazine recently discussed the potential of a merger between SP Setia and Sime Darby Bhd's property unit.

Asked if SP Setia is keen on such a deal after a slew of tie-ups among big local property developers recently, president and chief executive officer Tan Sri Liew Kee Sin declined to comment except to say that the group will continue to grow and compete.

SP Setia's sales target for 2011 would be 40 per cent more than the RM2.31 billion it made last year.

"For the financial year 2011, we expect all our existing projects in the Klang Valley, Johor and Penang to continue doing well," Liew said at a media briefing in Shah Alam, Selangor yesterday.

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EPF Records RM67 Million In Returns From Real Estate Investment


Extract from Bernama (09/12/10)

KUANTAN -- The Employees Provident Fund (EPF) recorded RM67.29 million in returns in the third quarter of this year from its investment in real estate.

Describing it as an encouraging figure, EPF chairman Tan Sri Samsudin Osman said EPF had now invested RM1.89 billion or 0.44 per cent in real estate out of its total investment of over RM420 billion.

He said as a fund aimed at providing financial security for its contributors upon retirement, the investments were made carefully by EPF to avoid losses in the long run.

"The main objective of EPF is to give reasonable returns from its investments which will be translated into good dividend rates for contributors' savings," he said at the official opening of the Pahang EPF building by the Sultan of Pahang, Sultan Ahmad Shah, here, Thursday.

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Mutiara Goodyear Launches Nadayu 92 In Kajang


Extract from Bernama (09/12/10)

PETALING JAYA-- Property developer, Mutiara Goodyear Development Bhd, has launched its second development, the Nadayu 92 in Kajang.

This follows the success of its flagship development,Nadayu,in Taman Melawati, Kuala Lumpur.

Nadayu 92 spans approximately 68.6 acres (27.7 hectares) of freehold land.

To be launched in three phases, the project has a gross development value of RM230 million.

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High Cost Of Land Reason For Steep House Prices In Penang, Says Rehda


Extract from Bernama (09/12/10)

GEORGE TOWN -- The Real Estate and Housing Developers' Association (Rehda) of Penang is claiming that the high cost of land is the main reason for houses being sold at high prices in the state.

Its Chairman, Datuk Jerry Chan Fook Sing said the high cost of land was also the reason for developers' inclination towards building upmarket homes in the state.

The limited land in Penang Island has caused landowners to sell their land at very high prices and this directly impacts the price of houses, he said.

"When the land is bought for a high price, developers are forced to sell the houses at a high price as well.

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Developers Must Be More Transparent With Property Buyers On Maintenance Fees


Extract from Bernama (09/12/10)

KUALA LUMPUR -- Developers of stratified properties should be more transparent on the buildings' overall maintenance cost with the buyers of the properties.

Making this call, President of the International Real Estate Federation (FIABCI) Malaysia, Yeow Thit Sang said there had been a lot of unresolved problems especially on the collection of maintenance fees.

Yeow said there were two million units of strata titled residential units and the problem was growing but the resolution has not been fast enough.

He said that even before the purchase of such properties, the buyers must be informed of the maintenance fees and processes involved.

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KSL City Shopping Mall Set For Sunday Opening


Extract from The Star (09/12/10)

Johor’s largest retail complex will offer gross floor area of 880,000 sq ft

JOHOR BARU: KSL Holdings Bhd will be opening part of its KSL City project development the four-storey retail complex on Dec 12.

Executive director Ku Hwa Seng said the retail complex would be Johor's largest shopping mall with a gross floor area of 880,000 sq ft and 2,800 indoor parking lots.

He said the podium block had 420 retail shops, 50 food and beverage outlets, and eight cineplexes, including two 3D screens.

Ku said the atrium of the retail complex would also house Johor's largest indoor electronic billboard made up of nine 62-inch flat-screen LCD televisions.

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MK Land Stays Open To Mergers If There Is A Strategic Opportunity, Group Will Not Hesitate To Consid


Extract from The Star (09/12/10)

SUBANG JAYA: MK Land Holdings Bhd is not ruling out the possibilities of merging with other property players, according to chief operating officer Lau Shu Chuan.

If it (potential merger) is better for the company, why not? We're always open, he said after its AGM yesterday.

Lau said the group did not mind if someone with deep pockets was interested in such a proposition.

However, he said the group had yet to receive any proposals.

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Property Merger Mania And What’s In It For Minoriy Shareholders


Extract from The Star (09/12/10)

AGAINST the backdrop of still-distressed economic conditions in the Euro zone, Chinese inflationary worries and perhaps most disconcertingly, the war games in the Korean Peninsula, major shareholders, corporates and bankers are realising that the window for deal-making could be fast closing.

Also perhaps these deals are via the asset-liability route and requires currently only 50% approval compared to other routes which requires at least 75% approval from disinterested shareholders and thus want to take the opportunity now to do these deals without needing to entice a larger portion of minorities and with a price that may need to be good enough for the deal to go through.

These recent spates of deal making, however, need not necessarily be a bad thing if two key questions are answered: firstly, whether minorities are getting a fair and reasonable offer for their shares, and secondly, whether they have the option to ride on the upside of the merged entity's, if any.

First, the UEM Land-Sunrise merger. UEM Land has offered Sunrise shareholders RM2.80 for their shares in an all-stock deal, and has rejected calls to raise its RM1.4bil offer even though Sunrise shares have risen beyond the offer price.
An aerial view of Sunway City Ipoh

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SP Setia Posts 32% Higher PAT On Asset Disposal, Property Sales


Extract from The Star (09/12/10)

PETALING JAYA: Property developer SP Setia posted a 32% rise in profit after taxation (PAT) to RM75.2 million for the fourth quarter ended Oct 31 from disposal of an investment property in Bukit Indah, Johor.

Revenue rose 41.8% to RM558mil.

The company said in an announcement to Bursa Malaysia Thursday that profit and revenue were principally derived from property development activities carried out in the Klang Valley, Johor Bahru and Penang.

It added that other ongoing projects that contributed to profit and revenue included Setia Alam and Setia Eco-Park at Shah Alam.

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REITs: Few Earnings Surprises


Extract from The Edge (08/12/10)

Living up to their reputation for comparative predictability and low risks, earnings results for real estate investment trusts (REITs) for the latest quarter ended September 2010 offered few surprises.

CapitaMalls Malaysia Trust (CMMT) announced its maiden earnings results for the period from July 14 to Sept 30 — reporting net profit of RM21 million, which was just marginally ahead of the forecast made in its prospectus.

Its three properties — Gurney Plaza in Penang, The Mines in Selangor and Sungei Wang Plaza in the heart of Kuala Lumpur — have a combined net lettable area of almost 1.88 million sq ft and maintained almost full occupancy, averaging at roughly 98.3% as at end-September.

Leases up for renewal in the year-to-date — which accounted for about 16.9% of total net lettable area under its management — too have registered positive rental increases, ranging from 2.5% for Sungei Wang and 6.6% for Gurney Plaza.

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