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Sunrise, UEM Land Shares Advance Ahead Of Dec 22 Deadline

Extract from The Edge (10/12/10)

KUALA LUMPUR: Shares of Sunrise Bhd and UEM Land Holdings Bhd rose in active trading yesterday, ahead of the Dec 22 deadline for the former’s minority shareholders to accept the latter’s takeover offer.

Sunrise shares rose 29 sen to RM3.30 with 13.36 million shares traded. This was its biggest one-day gain since Nov 8’s 70 sen share surge to RM3.22, when its shares resumed trading after the announcement of the corporate exercise. Since then, Sunrise’s shares have traded ex for two dividends totalling 31.67 sen.  

Yesterday, UEM Land’s shares rose 15 sen to an all-time high of RM2.58 with 10.22 million shares transacted.

UEM Land’s acquisition of Sunrise will create Malaysia’s largest property company on Bursa Malaysia.  With the recent rally in the share prices of both companies, the combined market capitalization of the merged entity is estimated at around RM11 billion.


The Perils Of The American Dream

Extract from The Star (11/12/10)

THERE was this tag-line The American Dream is truly attainable! in a local newspaper advertisement marketing US properties.

The advertisement highlighted earning an annual rental income with a three-bedroom detached house of up to 20%, which in Malaysia, would be considered a bungalow.

The nice house and attractive proposition aside, is that American dream really attainable? And if it is, is it sustainable?

If it were, the US government would not need to pump nearly US$1 trillion into the economy and neither would US President Barrack Obama speak to CEOs to seek their help to ease unemployment which is running at more than 9%.


Impressive Take-up By Foreigners At Gurney Paragon

Extract from The Edge (10/12/10)

GEORGE TOWN: Hunza Properties Berhad Group’s (HPB) RM450 million Gurney Paragon condominium project along Gurney Drive has seen an impressive take-up by foreign investors.

Two thirds of the 220 units have already been sold with locals taking up 50% while the rest were snapped up by buyers from Hong Kong, Singapore, UK, Indonesia, China, Vietnam, France and even Russia.

HPB executive chairman Datuk Khor Teng Tong said roadshows and exhibitions on the  project in East Asia had received overwhelming response.

Word of mouth about the project and other projects completed by HPB also helped boost sales, Khor said after the company’s annual general meeting.


Mutiara Set To Launch RM1.6B Worth Of Projects

Extract from The Edge (10/12/10)

KUALA LUMPUR: Mutiara Goodyear Development Bhd (Mutiara) will launch RM1.6 billion worth of projects in the next 12 months.

The first of the new projects to be launched is the freehold 68.6-acre Nadayu 92 in Kajang with a gross development value (GDV) of RM320 million. Phase 1 of Nadayu 92 to be launched tomorrow, comprises 77 units of two-storey, 22 units of 2 ½-storey and 20 units of three-storey terraced homes, with built-ups ranging from 2,116 sq ft to 3,890 sq ft.

Prices start from RM420,000 for the two-storey units, RM593,000 onwards for the 2½ storey units and RM699,000 for the three-storey units. Phase 1 with a GDV of RM230 million is expected to be completed by 2012.

“If the take-up for phase 1 is good, we will launch about three or four phases within the next 12 months,” said its executive chairman Hamidon Abdullah during a press conference yesterday.
Hamidon says Nadayu 92 will position Mutiara as a developer that gives value for money.


I&P Launches ‘Premium Homes’ In Bandar Kinrara

Extract from The Edge (10/12/10)

KUALA LUMPUR: I&P Group Sdn Bhd is launching what it terms as premium homes at its Bandar Kinrara township in Puchong, Selangor, this weekend.

The RM255-million Q’aseh consists of 118 superlink homes while the RM73-million Chantek offers 14 semi-detached homes. Built on land sizes of 1,915 sq ft to 6,100 sq ft, Q’aseh units have built-ups from 2,799 sq ft to 3,778 sq ft.

These are priced from RM945,888 to RM1.8 million. Meanwhile, the Chantek semidees are priced between RM2.25 million and RM3 million. The units are sized from 3,097 sq ft to 3,579 sq ft.

According to the developer, the homes had received good response during the preview weekend on Nov 27 and Nov 28. “We received 217 registrations for Q’aseh and 11 for Chantek. This will be the last launch in Bandar Kinrara this year,” said its managing director Datuk Jamaludin Osman, adding that he expects good take-ups for the two launches.
Jamaludin expects good take-ups for new launches.


Property Sector Playing The M&A Game

Extract from The Edge (10/12/10)

Property Maintain overweight: We have seen three sizeable mergers in the property sector in less than a month. While SunCity-SunHoldings offers the highest upside to the merged RNAV from current levels, we are more excited about the UEM Land-Sunrise merger due to its potential participation in Khazanah-Temasek’s property project on prime Singapore land, followed by MRCB-IJM Land. Their merger will raise their chances of participating in the RM10 billion gross development value (GDV) Sungai Buloh land development. These potentials are, however, not quantifiable for now.

We estimate a RM3.70 RNAV per new SunCity-SunHoldings share. After adjusting for the share exchange ratios, we derive a 19% upside potential from the current levels of SunCity shares and 23% for SunHoldings. Our RNAV estimates for the merged entities in the UEML-Sunrise and MRCB-IJML mergers do not offer much upside from their current share price levels based on existing landbank.

We categorize the UEML-Sunrise and MRCB-IJML mergers as value creators. There may not be much upside to the merged entities’ RNAV derived from the existing landbank, but the mergers will create the size that will raise their chances of participating in the development of choice land in Singapore (for UEML-Sunrise) and mixed development in Sungai Buloh (for MRCB-IJML). The SunHoldings-SunCity merger will unlock value.

We estimate that Singapore and Malaysia’s agreement (on Sept 20) for joint development of a 5.3ha tract at Marina South and Ophir-Rochor has a S$5.3 billion (RM12.7 billion) potential GDV. Khazanah has a 60% stake and Temasek 40%. Our S$5.3 billion GDV estimate is derived from a blended S$1,600 psf selling price on 5.4 million sq ft of gross floor area projected by the consultants, after adjusting for an 80% efficiency ratio. UEML-Sunrise stands a good chance of participating in the developments, riding on Sunrise’s strong brand name, expertise in high-rise developments, and with Khazanah as a major shareholder.


RM5 Million For DBKL To Help Buyers Maintain Public Housing

Extract from Bernama (10/12/10)

KUALA LUMPUR -- The women, family and community development ministry today handed over RM5 million to the Kuala Lumpur City Hall (DBKL) to assist in maintaining the National Economic Action Council's People's Housing Project and DBKL Public Housing.

Its minister, Datuk Seri Shahrizat Abdul Jalil, said the fund would benefit 11,879 people in the low-income group to buy apartment units.

"An RM3.2 million allocation under the National Key Result Area (NKRA) will be given to the 11,879 buyers while the balance is meant for other eligible buyers in the future.

"The assistance involves monthly maintenance fees of RM45 for six months for each unit," she told reporters after a cheque presentation ceremony for RM5 million to the federal territories and urban well-being ministry, on behalf of DBKL here Friday.


Township Development To Remain Major Earner For SP Setia

Extract from Bernama (10/12/10)

KUALA LUMPUR -- While township development will continue to be a major earnings catalyst for SP Setia Bhd, other bonus re-rating catalysts will be the successful launch of its RM6.0 billion KL EcoCity by January or February next year, says OSK Research.

In a research note here Friday, OSK said the launch of Phase One of the six to 10-year development will likely comprise 12 blocks of boutique offices valued at some RM60 million each, which would be sold en bloc.

"As we understand that some small and medium enterprises (SMEs) are keen in acquiring these office blocks, the launch by first quarter of calender year 2011 looks likely to be well-received and will provide the necessary momentum to kick-start the entire development," said the research firm.

It said the next growth kicker will be the continuing progress at the RM5 billion Setia City, an integrated commercial city in the Setia Alam township.


End In Sight For Land Title Problem

Extract from The Star (10/12/10)

AN END is in sight for the 20-year land title issue that has been plaguing residents of Taman Daya, Kepong, as a briefing will be held on Sunday to explain the next step in procuring the individual titles.

For 20 years, 288 residents of the second phase of the project have been fighting for their titles.

The area is divided into three master land titles where the first phase titles were sub-divided in 1991 and handed out to the owners in 2001.

After pressing the land office, a meeting was held on Dec 29 last year with Gombak Land Office assistant district officer who announced that residents who have yet to receive their individual titles would only have to pay RM1,000 as land premium.


Stratified Property Issues Need Attention

Extract from The Star (10/12/10)

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

International Real Estate Federation (Fiabci) Malaysia president Yeow Thit Sang said there had been a lot of unresolved problems, especially on the collection of maintenance fees, in such properties.

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

Speaking on the sidelines of the 5th Property Management Seminar here yesterday, he said even before the purchase of such properties, buyers must be informed of the maintenance fees and processes involved.