Thinkproperty Blog

Extract from Business Times (28/07/10) A PERFORMING arts centre to rival Australia's Sydney Opera House, waterfront retail promenade and an international standard marina are among the attractions property developer IJM Land Bhd will unveil when it launches the second phase of its flagship waterfront "The Light" development in Penang at the end of the year. Its managing director Datuk Soam Heng Choon yesterday said the proposed iconic arts centre, known as "The Pearl" is expected to boost a seating capacity of 2,000 and set to be sprawled over 0.8ha. The proposed marina, meanwhile, is expected to offer club facilities with more than 200 berths. "Also to be found in the second phase of this commercial development would be an information technology precinct for Multimedia Super Corridor-status companies and incubator firms," he said during a media launch of the company's "The Light Collection 1" in Penang.

Extract from Business Times (26/07/10) RHB Investment Bank Bhd, the appointed price stabilizer for Sunway Real Estate Investment Trust Bhd (Sunway REIT) (5176), has been buying the shares over the past 14 days to help stabilize price of Sunway REIT shares. It bought some 30.6 million shares of Sunway REIT in stages over the past two weeks from prices ranging from 87.5 sen and 89.5 sen. Under Section 9(3) of the Capital Markets and Services Act 2007, Capital Markets and Services (Price Stabilization Mechanism) Regulations 2008, an investment bank can be given the authority by the share issuer to help stabilization the share price. The Act also states that the period for any stabilizing action will be thirty calendar days starting from the first day of trading on the stock exchange of the relevant securities.

Extract from Business Times (26/07/10) BERJAYA Land Bhd (BLand) will launch new projects worth more than RM500 million this year to take advantage of pent-up demand for housing in the Klang Valley. BLand is bullish on the property market, its senior general manager of properties and marketing, Mah Siew Wan, said. "We are seeing a return of buying interest for high-end houses. Our properties are all unique and in prime areas so we are confident of brisk sales," she told Business Times in an interview. BLand, 53 per cent controlled by Tan Sri Vincent Tan's Berjaya Corp Bhd, will launch Vastana25, a high-end project, at Seputeh Heights in Kuala Lumpur by end-July.

KYM HOLDINGS BHD has entered into a sale and purchase agreement to acquire three parcels of leasehold land in Genting Highlands measuring a total of 2,319.12 ha for about RM3 million.

The proposed acquisition would contribute positively to the group's revenue and profitability from the financial year ending 2011 onwards.

It said the land has good potential for development due to its prime location in the mature township of Gohtong Jaya in Genting Highlands.

The proposed land acquisition is expected to be completed by the first quarter of 2011.

AXIS Real Estate Investment Trust says its second quarter net profit almost doubled due to the higher value of its properties.

Axis REIT is bullish on its performance for the rest of the year.

Its net profit for the quarter to June 30 2010 was RM21.9 million, up from RM12.5 million in the same quarter a year earlier.

Revenue went up 21 per cent to RM21 million due to higher gross rental income.

Extract from Business Times (19/07/10) MANAGERS of real estate investment trusts (REITs) are hoping for a reduction in withholding tax for REIT investors in next year's budget, to spur the industry growth and make it more competitive. To keep the industry in line with international practice, REIT managers are also proposing for relaxation on fund-raising exercises. These issues will be brought up by the Malaysian REIT Managers Association (MRMA) during the pre-budget dialogue. MRMA pro-tem vice-chairman Lim Yoon Peng said the incentives are needed to grow the local REIT industry, which is still in an infancy stage.

MULTI-PURPOSE Holdings Bhd (MPHB) has signed three memorandums of understanding with Bandar Raya Developments Bhd to develop several pieces of land in Penang and Selangor.

The two companies plan to combine their resources and expertise to development land owned by MPHB in Penang, Rawang and Gombak.

Entry into the agreements is in line with MPHB’s objective to develop its landbank into viable projects.

BRDB will be the developer of the proposed projects.

Extract from Business Times (14/07/10) THE opening of Rendezvous Hospitality Group (RHG)'s new 445-room business hotel within the Taragon Puteri Kuala Lumpur integrated development remains uncertain. The reason is that Singapore-based RHG will no longer be involved in the project. RHG chief executive officer Iqbal Jumabhoy when contacted by Business Times said: "The management contract for Rendezvous Hotel Kuala Lumpur has not been activated because conditions for the lease and operations have not been met." The hotel was scheduled to open this month.

KLCC Property Holdings Bhd is looking to secure a single tenant for its 840,000 net lettable sq ft Prime A office space at the Lot C development, located next to the Suria KLCC shopping centre.

"We are in discussions with a party," KLCC Property director Datuk Manharlal Ratilal told reporters after its annual general meeting in Kuala Lumpur yesterday.

He declined to elaborate.

Lot C's office building is due for completion by October 2011.

MELATI Ehsan Holdings Bhd's wholly-owned subsidiary, Bayu Melati Sdn Bhd has entered into a development agreement with Tengku Shahrudin Sdn Bhd to undertake a residential development project.

The proposed development, known as Bukit Tengku Shah Alam, will allow Melati Ehsan through Bayu Melati to generate revenue and profits to the group.

The proposed development would expand the property market of the Melati Group in a strategic location in Selangor.

Extract from Business Times (13/07/10) BANDAR Raya Development Bhd (BRDB) is buying Limitless Holdings Pte Ltd's stake in a RM2.3 billion waterfront project in Johor to strengthen its presence in the region and improve earnings. BRDB, well known for its developments in the Bangsar enclave, Kuala Lumpur, wants to build more properties in Johor, riding on the success in Iskandar Malaysia, a spokesperson said. "We calculated and evaluated the deal before buying the stake. It worked out well and we found it good value for our shareholders," the spokesperson added. Based on a preliminary feasibility study, the project, dubbed "Residential North", is expected to generate gross development profit of RM700 million.

Extract from Business Times (12/07/10) SERVICED residences operator Ascott International Management (Malaysia) Sdn Bhd has achieved what is considered a rarity among hoteliers in Malaysia. Ascott, which is a member of CapitaLand, enjoys a handsome gross operating profit (GOP), which in turn translates into better returns. GOP is the gross revenue from rooms, food and beverage, laundry or business centre minus the cost of operations (wages, electricity and amenities). Generally, chalking up a GOP of 40 per cent is considered good and one touching 50 per cent is commendable. In Malaysia, a very high GOP is not uncommon among hotels in the budget category.

PROPERTY developer Bandar Raya Developments Bhd (1473) said its subsidiary has bought 60 per cent of a building company from a unit of state-owned conglomerate Dubai World.

Bandar Raya's subsidiary Ardent Heights has entered into a deal to buy Limitless Holdings Pte Ltd's entire stake in Haute Property Sdn Bhd for a nominal sum of RM1, the Malaysian firm told the stock exchange.

Ardent will pay Limitless RM75 million which Limitless had advanced to Haute towards partial payment by Haute for the development rights of a building project in Johor.

Ardent will also pay Limitless RM1 million to settle about RM10 million advanced by Limitless to Haute to meet Haute's operating and development expenses for the project, Bandar Raya said.

TRADEWINDS Corp Bhd, which is undertaking the RM450 million refurbishment of the 29-year-old Menara Tun Razak in Jalan Raja Laut, forsees office rental in the building to increase by 40 per cent by 2014.

Chairman Tan Sri Megat Najmuddin Megat Khas said office space in the building was currently rented out between RM3.50 and RM4.50 per sq ft and this would be increased to RM6 per sq ft.

He said the redevelopment activities would result in a temporary decline in the rental income from the group's property division.

"Barring any unforeseen circumstances, we expect to see rental income to decline by RM8 million annually, but we are optimistic that we can recover and improve our profitability when the Menara Tun Razak project is completed in four years' time," Megat Najmuddin told a press conference in Kuala Lumpur yesterday, after the company's annual general meeting.

PROPERTY developer IJM Land Bhd (5215) has seen overwhelming response from Korean buyers for its RM500 million The Pearl Regency development on Penang island.

Apart from an en bloc sale of the entire commercial portion of the project comprising 83 commercial units worth RM90 million to a Korean party, IJM has also seen 40 per cent of 574 condominiums sold to Koreans.

The units, which were launched in Penang yesterday, were pre-sold to the Koreans in December last year in South Korea.

"The buyers of the condos are mainly Korean retirees and families who send their children to Penang to brush up on their English skills," IJM Land general manager Toh Chin Leong told a media briefing in Penang yesterday.

MAH Sing Group Bhd, the country's fifth largest property developer by revenue, plans to launch the "Icon City" in Selangor, its biggest commercial development thus far, which has a gross development value of over RM1.5 billion.

The project, which will be developed in phases, is located on 7.93ha site in SS8, Sungei Way, a site formerly occupied by Matsushita Group of Co.

Mah Sing had bought the land from Panasonic HA Air-Conditioning (M) Sdn Bhd for RM89 million or RM104.23 per sq ft. The deal was completed in March this year.

The land is situated at the crossroads of the Lebuhraya Damansara-Puchong and Federal Highway, making it strategic for development.

 

Extract from Business Times (23/06/10)

The Malaysian government wants it to be an iconic development in Golden Triangle in Kuala Lumpur, says Multi-Purpose's managing director

Multi-Purpose Holdings Bhd (MPHB) (3859) will launch a RM3 billion project in Kuala Lumpur by the middle of next year which will complement the government's proposed international financial district and Pasar Rakyat redevelopment in Imbi.

Managing director Datuk Lau Kim Khoon @ Surin Upatkoon said the mixed development will be the group's biggest project.

It will comprise a one million sq ft full-fledge retail podium on 2.4ha, 50-storey luxury condominium, 35-storey four-star hotel and 30-storey office tower.

Extract from Business Times (22/06/10)

BOLTON LYL Sdn Bhd, an indirect wholly-owned subsidiary of Bolton Bhd, is filing for liquidated damages from Intrapuri Sdn Bhd for terminating the sales and purchase agreement signed between both parties on the acquisition of a 2.2ha land in KL for RM39 million.

“Pursuant to the above letter of termination, Intrapuri is in breach of and has defaulted under the terms and conditions of the agreement.

As such, Bolton LYL has vide their letter dated June 21 2010 informed Intrapuri that Bolton LYL shall exercise its rights to terminate the agreement and demand for liquidated damages under Clause 16 of the agreement,” the company said in a statement to Bursa Malaysia.

Extract from Business Times (21/06/10)

PERDANA ParkCity Sdn Bhd, a subsidiary of the timber-based Samling group, hopes to replicate its successful Desa ParkCity township model abroad, targeting Southeast Asia.

The company is looking for landbank of more than 120ha in Jakarta, its group chief executive officer Lee Liam Chye said.

"We will form joint ventures with landowners and developers. We think Asia is on an upstream and we are at the beginning of a recovery after a recession.

"For me, the sooner we get into actualising our vision to be a regional player the better it would be for the company," Lee said in an interview with Business Times in Kuala Lumpur recently.

Extract from Business Times (16/06/10)

IJM Land Bhd said its unit IJM Properties Sdn Bhd and Angkasa Gagah Sdn Bhd, a unit of IGB Corp Bhd, have scrapped a plan to build residential property in Setapak, Selangor.

Both parties signed a deal for the project in October 2006.

IJM did not say why they aborted it but said that it needed regulatory approval for the project.